How One Acre Fund's loans and direct payments programme helps smallholders transition to sustainable soil management
Project
Agroforestry
Country
tanzania, MAlawi
Land status
privately-owned and managed
One Acre Fund's agroforestry projects are piloting direct carbon revenue payments to smallholders to offset labour and opportunity costs to facilitate the move to sustainable soil management practices.
Year 0 - In-kind: seedlings subsidised on credit
Year 1-3 - Cash: survival payment per surviving seedling, paid on 6- or 12-month terms, based on farmer feedback
Year 4-20 - carbon payments
Fixed and pre-communicated seedling package price, and repayable over ~8-10 months on credit
Fixed and pre-communicated survival amount
Targeting 100% smallholders
Aug-24: Malawi: c.600 farmers; Tanzania: c.1,500 farmers
2030: Malawi: 34,000 farmers; Tanzania: 35,000 farmers
Quality of transaction receipts for cash and non-cash payments
Ensuring that carbon payment calculations are transparent and well-understood by clients
