Http://www.fao.org/3 /ca9846en/CA9846EN.p Df.pdf

The COVID-19 pandemic poses significant challenges to the global economy, and governments are responding quickly to limit negative impacts on livelihoods and economic downturns. The financial sector plays a crucial role in enabling successful country responses. Small- and medium-sized agribusiness enterprises (SMEs) and smallholder family farmers are critical to food systems, but are experiencing short-term cash flow shortages and diminished operating capacities. The most vulnerable population groups, including the urban poor, elderly, migrants, women, and youths, are expected to be severely affected.

To address these challenges, policymakers are designing COVID-19 response programs that address the needs of agrifood and rural sectors through dedicated rural finance instruments and broader financial sector involvement. The programs aim to support rural actors' access to finance, business continuity, and incomes, while ensuring a well-functioning and sound financial sector.

Common measures include economy-wide stimulus packages, livelihood support interventions, and financial market interventions, such as assistance to SMEs, credit guarantees, and subsidies. Digital finance innovations, like mobile payments and online platforms, are also being used to mitigate the effects of the crisis on farmers and agri-MSMEs. Recommendations for policymakers in developing countries include providing support to smallholder farmers and agri-MSMEs, assessing the impact of the crisis on the financial sector, and promoting digital finance innovations to enhance rural finance resilience.