Sustainable transition to mixed agricultural finance: limitations and opportunities

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Abstract

Moving to sustainable agricultural systems is essential to achieving the global sustainable development goals (SDGs). Building more sustainable agricultural production systems will require significant additional investment, but this cannot be covered by the existing financial market structure that separates public and private investment. Blended finance, in which development-oriented concessional finance is used to mobilize additional private capital, is essential. To ensure that the limited pool of concessional financing is used effectively and efficiently, a common understanding of the roles and constraints of public and private investment is needed. The purpose of the article is to analyze the financing processes for sustainable agricultural development, as well as to identify the concept and potential of blended finance in this context. Research methods: when conducting scientific research, statistical and economic methods were used. The use of comparative analysis made it possible to assess public and private investments in agriculture in Kazakhstan and draw analogies with other countries. Analytical methods were used to consider the features of the application of blended finance instruments in agriculture. The abstract-logical method was applied to identify problems using various forms of financing for agriculture. Results: The author presents the conditions under which various financing mechanisms can help remove barriers associated with investment in sustainable agriculture. Conclusions: it is necessary to use several methods of financing to achieve significant results from investments in agriculture, studying the range of mixed financial instruments to increase investments in agricultural development will allow faster achievement of sustainable development goals.