Putting Food on the Balance Sheet 2025

Agri-bank OfftakingLoan subsidy Corporate Upstream (suppliers)Direct farmer lending, facilitated by catalytic capital from corporate offtakers Financing model 3: Direct farmer lending, facilitated by catalytic capital from corporate offtakers FIGURE 7 Matching for prec. ag. equip. Provision of capital Provision of non-financial servicesDirect de-risking for capital providers Tranching First-loss coverage Guarantee Interest payment Insurance premium payment Impact bonus/incentiveIndirect de-risking through demand commitments Offtake agreements Ecosystem outcome monetization Price premiumTechnical assistance/training Grace periodEnablers ESG rating Value chain networkCommercial capital Discounted interest loanRepayment Price premiumTechnical assistanceTechnical assistance Catalytic capital Growers Offtake agreements Source: McCain website; Rabobank websiteFood corporates can also play a more active role in food systems transformation, by providing catalytic capital to derisk farmer investments. This model involves collaboration between financiers, corporate buyers (off-takers) and, strategic suppliers (farmers) forming a partnership that facilitates more efficient and accessible financing. The key benefit of this model is reduced lending risk for financiers. This is achieved by leveraging the catalytic capital or creditworthiness of corporate off-takers, who typically offer subsidized interest rates, premium payments for insurance (e.g., crop or weather), or repayment guarantees. These mechanisms help make financing more affordable for farmers investing in sustainable practices, while improving supply chain resilience of food corporates. A clear example is the collaboration between McCain and financial institutions across multiple geographies; e.g., UK, Canada, France, Poland and one example being Rabobank in the Netherlands. This partnership supports potato farmers in adopting regenerative agriculture. McCain provides preferential loan terms, discounted interest rates, technical assistance, and often subsidizes the loans while serving as a long-term off-taker – significantly reducing barriers to sustainable farming.15Model 3 Putting Food on the Balance Sheet 11