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APEC Project Database

Project Title

Leveraging Digital Innovation and AI to Accelerate the Transition of Smallholder Farmers to Formal Economy for Rural Prosperity in the APEC Region

Project Year

2026

Project Number

ATCWG_101_2026A

Project Session

Session 1

Project Type

Standard

Project Status

Project in Implementation

Project No.

ATCWG_101_2026A

Project Title

*
Leveraging Digital Innovation and AI to Accelerate the Transition of Smallholder Farmers to Formal Economy for Rural Prosperity in the APEC Region

Project Status

Project in Implementation

Fund Account

*
APEC Support Fund

Sub-fund

ASF: Digital Innovation

Project Year

2026

Project Session

*
Session 1

APEC Funding

143,085

Co-funding Amount

0

Total Project Value

143,085

Sponsoring Forum

*
Agricultural Technical Cooperation Working Group (ATCWG)

Topics

Agriculture; Digital Technology and Innovation; Food Security

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE)

Other Fora Involved

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Peru

Co-Sponsoring Economies

Canada; Chile; China; Indonesia; Korea; Malaysia; Papua New Guinea; Philippines; Russia; Chinese Taipei; Thailand; Viet Nam

Expected Start Date

02/11/2026

Expected Completion Date

31/12/2027

Project Proponent Name 1

Noemi Marmanillo Bustamante

Job Title 1

Director of Cooperation and International Affairs

Organization 1

Ministry of Agrarian Development and Irrigation

Telephone 1

+51942434258

Email 1

Project Proponent Name 2

Sergio Andre Cabrera Siguas

Job Title 2

Cooperation and international Affairs Specialist

Organization 2

Ministry of Agrarian Development and Irrigation

Telephone 2

(+51)988988849

Email 2

Declaration

Noemi Marmanillo Bustamante

Project Summary

Agriculture is an essential pillar for food security and the livelihoods of millions of people in the Asia-Pacific region. However, the agricultural sector remains significantly constrained by informality, particularly among smallholder farmers. This limits their access to formal financing, stable markets, social protection, technology, and training, resulting in low productivity and heightened vulnerability to economic and environmental shocks.

In this context, promoting the transition of smallholder farmers to formal economy through digital innovation, artificial intelligence (AI), and technological tools represents a fundamental strategy to improve livelihoods, expand economic opportunities, and foster economic prosperity for a more resilient future in the region. The project explores how digital transformation and AI-driven solutions can accelerate this formalization process.

A two-day workshop will be held in Peru to share innovative digital platforms and applications, including AI-driven solutions, that promote formalization of smallholder farmers and support rural development. A report will be prepared to summarize the survey findings and the outcomes of the workshop, with a specific focus on technological strategies.

Relevance

Region
Agriculture is an essential pillar for food security and the livelihoods of millions of people in the Asia-Pacific region. However, the agricultural sector remains significantly constrained by informality, particularly among smallholder farmers. This limits their access to formal financing, stable markets, social protection, technology, and training, resulting in low productivity and heightened vulnerability to economic and environmental shocks.

It is estimated that more than 80% of rural employment worldwide is informal (according to the ILO). Given that agriculture is the predominant economic activity in these areas, this translates into massive informality in the agricultural sector. Formal employment and profitability in agriculture are absolutely crucial for food security, as they directly impact all its pillars. Therefore, the project seeks to support smallholder farmers by promoting land tenure formalization, fostering cooperatives and associative networks, facilitating access to credit, providing training and technical assistance, and ensuring social protection. At the same time, it promotes the adoption of innovative digital platforms and applications, including AI-driven solutions, as strategic tools to improve efficiency, connectivity, and market access. Through these technological solutions, smallholder farmers are empowered to transition to the formal economy, bridge the digital divide, and enhance livelihoods and economic resilience in rural communities.

A survey will be developed to identify and collect information on digital, AI-driven, and innovative platforms—including ICT tools—implemented by APEC economies to accelerate and improve the transition of smallholder farmers into the formal economy. The project also includes a two-day workshop to exchange best practices, and a report will be published to summarize the results, serving as an informative tool to assist decision-making for future initiatives that strengthen agricultural formalization and technology adoption throughout the region.

Eligibility and Fund Priorities
This proposal meets the eligibility criteria of the APEC Support Fund (ASF) – Digital Innovation Sub-fund by aligning with the strategic focus areas of the APEC Internet and Digital Economy Roadmap (AIDER), specifically by leveraging enabling technologies, such as Artificial Intelligence and digital platforms and applications, to enhance productivity, drive innovation, and strengthen competitiveness. By integrating these solutions, the project fulfills the roadmap’s objective of promoting an inclusive digital economy, generating knowledge and fostering the adoption of innovative tools that empower smallholder farmers, including women and youth, to overcome structural barriers, such as the lack of digital identity, land tenure records, and financial history. This approach accelerates their transition to the formal economy, improves market access, and fosters rural prosperity across the APEC region.

It is also in line with the APEC Cross-Border e-commerce facilitation framework by leveraging digital innovation and AI to facilitate smallholder farmers’ integration into regional and global markets.

Capacity Building
The project aims to strengthen capacity building by generating and sharing knowledge on innovative digital platforms and applications, including AI-driven solutions, as strategic tools to accelerate the transition of smallholder farmers to formal economy systems. It will identify gaps in knowledge, technical skills, access to information, and resources that hinder their transition to formal agriculture. By addressing these gaps, the project will support economies in integrating smallholder farmers—including women and youth—into global value chains, enhancing incomes and strengthening technological capabilities. The shared information will enable both developed and developing APEC economies to replicate and adapt these approaches and contribute to their regulatory efforts to achieve common goals.

Objectives

The overall objective of this project is to generate knowledge, promote adoption, and exchange best practices on the use of innovative digital platforms and applications, including AI-driven solutions, as strategic tools to accelerate the transition of smallholder farmers to the formal economy, thereby promoting rural prosperity, narrowing the digital divide, and strengthening broad and sustainable economic growth in the APEC region.

Alignment

APEC
The project will contribute to the implementation of the APEC Food Security Roadmap Towards 2030, particularly under the key action areas of digitization, innovation, and inclusivity. It supports the use of digital tools and AI-driven solutions to promote the transition of smallholder farmers to the formal economy, while strengthening training initiatives to improve digital literacy and skills among small producers. In addition, the project advances inclusivity by ensuring that smallholder farmers—including men, women, and youth—can bridge the digital divide and gain equitable access to formal financing, social protection, and stable markets, thereby strengthening the resilience and sustainability of the regional food system.

Furthermore, the project aligns with the priorities of APEC 2026 China, particularly in the area of innovation, through the implementation of technologies such as digital tools and artificial intelligence to improve the quality of life of rural communities and foster rural economic growth. It is also consistent with APEC’s Putrajaya Vision 2040 and the Aotearoa Plan of Action, as it promotes the adoption of innovative technologies and applications to encourage inclusive participation and enhance productivity, including through the digital economy.

Moreover, the project contributes to the Lima Roadmap to Promote the Transition to the Formal and Global Economies (2025–2040) and the APEC Artificial Intelligence (AI) Initiative (2026–2030) adopted by APEC Economic Leaders, by fostering resilient economic growth across and within APEC economies through the advancement and adoption of AI-driven solutions that support the transition of smallholder farmers to the formal economy.

Forum
This initiative advances the goals of the ATCWG 2026-2030 Strategic Plan, as it is aligned with the priority area of “Enhancing the research and development (R&D) and extension of Smart Agriculture” by leveraging digital innovation and Artificial Intelligence (AI) to accelerate the digital transformation and formalization of smallholder farming systems across the APEC region. In addition, it supports the objective of “Building agricultural value chains” by enabling smallholder farmers to integrate into formal, market-oriented value chains through digital tools that enhance traceability, market access, and regional and global connectivity.

The initiative also aligns with the ATCWG 2026 Work Plan, while fostering inclusive economic growth and prosperity and promoting the expansion of innovative technologies and approaches across the region. Likewise, the project’s objectives and activities are developed in accordance with the Lima Roadmap to Promote the Transition to the Formal and Global Economies, as contemplated in the work plan.

Beneficiaries and Outputs

Outputs
Output 1 - Virtual Survey

A consultant will be hired to prepare and monitor a virtual survey directed to all APEC economies, with a focus on those that have expressed interest in actively participating in the project: Canada; Chile; People's Republic of China; Indonesia; Republic of Korea; Malaysia; Papua New Guinea; the Philippines; the Russian Federation; Chinese Taipei; Thailand; and Viet Nam, which represent diverse experiences in digital transformation and technology adoption among APEC economies. The survey will identify and collect information on innovative digital platforms and applications, including AI-driven solutions and ICT tools, implemented by APEC economies to support the transition of smallholder farmers to the formal economy. The target audience will include authorities, officials, decision makers, researchers, experts, and private sector stakeholders closely related to the topic.

Simultaneously, the consultant will conduct a brief review of the literature about the current challenges and opportunities faced by smallholder farmers in APEC economies to transition to the formal economy and the role of digital solutions in supporting this process. Subsequently, the consultant will prepare an initial report of a minimum of 14 pages excluding annexes, which will serve as the basis for the final report and will provide an analysis of the identified digital solutions and their potential contribution to this process, incorporating the findings from the distributed survey. This information will be presented during the workshop.

Output 2 - Workshop

The two-day workshop scheduled for September 2027 aims to share experiences on innovative digital platforms and applications, including AI-driven solutions, and discuss their potential role in supporting the transition of smallholder farmers to the formal economy and promoting rural development in APEC economies. The event will include the presentation of survey findings on digital platforms and applications identified in APEC economies, expert presentations on digital transformation and technology adoption in agriculture, discussions on experiences and approaches from participating economies, and interactive group sessions. Participants will include authorities, officials, decision makers, researchers, experts, and private sector stakeholders closely related to the topic.

Day 1
Session 1: Workshop Introduction and Context on Smallholder Farmers’ Transition to the Formal Economy
Session 2: Digital Transformation Opportunities and Challenges for Smallholder Farmers in APEC Economies
Session 3: Presentation of Survey Findings on Innovative Digital Platforms, Applications, and AI-driven Solutions Supporting Smallholder Farmers’ Transition to the Formal Economy
Session 4: Benefits and Opportunities of Digital Solutions for Smallholder Farmers’ Inclusion in Formal Economy Systems
Session 5: Sharing Experiences and Approaches from APEC Economies on Digital Platforms and Applications
Session 6: Panel Discussion on Future Collaboration Opportunities among APEC Economies

Day 2
Field Visit

The field trip will include a visit to Peru’s Ministry of Agrarian Development and Irrigation (MIDAGRI), focusing on the National Agrarian Producers Registry (PPA) and its digital platforms for the identification and registration of smallholder farmers. The visit will highlight how digital information and producer identification can facilitate access to public services, financial services, productive support, and formal markets.

The visit will then continue at the Development Finance Corporation of Peru (COFIDE), focusing on financial inclusion initiatives for smallholder farmers, including Savings and Credit Unions (UNICA). Delegates will learn how these mechanisms enable rural producers to build savings, access formal credit, and strengthen their productive activities, as well as how digital technologies and data can help reduce barriers to financial inclusion.

Together, the visits will provide a practical perspective on how digital identification and registration can facilitate smallholder farmers’ access to formal economic opportunities. By connecting reliable producer information with access to financial services, formal credit, productive investment, and markets, the field trip will illustrate how digital innovation and AI can help overcome barriers to formalization, strengthen smallholder farmers’ economic participation, and contribute to inclusive and sustainable rural prosperity across the APEC region.

Session 7: Workshop Summary, Key Takeaways, and Closing Remarks.

The post-workshop survey will be conducted during this session.

Output 3 - Final Report (APEC Publication)

After the workshop, the consultant will prepare a final report providing a detailed analysis of the survey results and will be enriched by the discussions, comments, and feedback generated during the workshop. This final report is expected to be an APEC publication with a minimum of 30 pages excluding annexes, containing an executive summary, analysis of the literature review findings, survey results, presentation of innovative digital platforms and applications, including AI-driven solutions, as strategic tools to accelerate the transition of smallholder farmers to the formal economy, the summary of the workshop conclusions, and recommendations for future initiatives related to this topic.

Outcomes
1) Increased awareness and knowledge: Workshop participants and relevant stakeholders are expected to increase their knowledge and awareness of innovative digital platforms and applications, including AI-driven solutions, as tools to support the transition of smallholder farmers to the formal economy. This impact can be measured through surveys or interviews to assess understanding and knowledge before and after the workshop.

2) More resources available: Provide guidance to APEC economies on innovative digital platforms and applications, including AI-driven solutions, to support the transition of smallholder farmers to the formal economy. This impact can be measured through the delivery of written project outputs, such as the survey results and the final report.

3) Increased opportunities for collaboration between APEC economies: The project will promote interaction among participants and identify potential areas for future cooperation related to digital transformation in agriculture. This impact can be measured through the post-workshop survey of participants by assessing whether the project stimulated ideas for collaboration and future initiatives among APEC economies.

Beneficiaries
The primary beneficiaries of the project will be authorities, researchers/experts, and private sector stakeholders involved in the design, development, and implementation of innovative digital platforms and applications, including AI-driven solutions, to accelerate the transition of smallholder farmers to formal economy systems and contribute to rural development and prosperity, who will use the product that provides specific recommendations on tools and platforms derived from the workshop discussions. It will serve as an informative tool to assist decision-making for future initiatives that strengthen agricultural formalization and technology adoption throughout the region.

Smallholder farmers, including women and youth engaged in small-scale agriculture, alongside international organizations, will benefit as secondary beneficiaries from the implementation of integrated formalization strategies and enhanced technological capabilities. These initiatives will facilitate their digital inclusion, financial literacy, and access to formal markets and technological resources, ultimately improving their livelihoods, economic resilience, and food security across the APEC region.

Dissemination

Electronic copies of the workshop materials will be circulated to both speakers and participants. Following the workshop, all meeting documents will be uploaded to the APEC Meeting Document Database (MDDB).

The final report with a minimum of 30 pages excluding annexes will be published electronically in the APEC Publications website. Likewise, it will be disseminated electronically to speakers, participants and relevant APEC fora. This report will serve as an informative knowledge product to support decision-making processes and future initiatives aimed at strengthening agricultural formalization and technology adoption, including AI-driven solutions, among smallholder farmers in APEC economies.

The target audience for this publication includes authorities, officials, decision makers, researchers, experts, and private sector stakeholders who are actively involved in the design, development, and implementation of innovative digital platforms and applications, including AI-driven solutions, to accelerate the transition of smallholder farmers to formal economy systems and contribute to rural development and prosperity. Therefore, the main channels to disseminate the report will be the APEC Publications website and the social media platforms of the Ministry of Agrarian Development and Irrigation of Peru. It is crucial to emphasize that there are no intentions to commercialize any product resulting from this project.

Finally, the co-sponsors of this project will be encouraged to promote the electronic publication of this project through the social networks of the related institutions and on their respective websites, with the aim of maximizing its reach and impact.

Gender

Please see Project Proposal in Supporting Documents folder.

Work Plan

Please see Project Proposal in Supporting Documents folder.

Risks

Please see Project Proposal in Supporting Documents folder.

Monitoring and Evaluation

Please see Project Proposal in Supporting Documents folder.

Linkages

Invitations to participants and experts from other APEC fora and sub-fora will be extended to facilitate a high-level information exchange. The Policy Partnership on Food Security (PPFS), the Policy Partnership on Science, Technology and Innovation (PPSTI), and the Digital Economy Steering Group (DESG) are anticipated to actively participate by providing specialized feedback on how digital and AI-driven platforms and applications can be effectively used to overcome the specific barriers that hinder the transition to the formal economy. Their involvement will ensure that the identified technological tools are aligned with regional strategies to formalize smallholder farmers, thereby strengthening their integration into formal economy systems and global value chains.

Our collaboration with these fora will ensure the project effectively aligns with APEC’s cross-cutting priorities and integrates their technical perspectives into the final outcomes.

Finally, the project will engage with the Policy Partnership on Women and the Economy (PPWE) to incorporate their contributions on the inclusion of women smallholder farmers into the formal economy. This will allow them to access formal financing, stable markets, social protection and emerging technologies, directly contributing to rural prosperity and regional resilience.

Sustainability

The team responsible for the project aims to ensure that the knowledge generated through this initiative will continue to provide value beyond the completion of the project. Following the workshop, the final report will incorporate the results of the survey, the discussions, and recommendations generated during the event, providing a comprehensive knowledge product on innovative digital platforms and applications, including AI-driven solutions, to support the transition of smallholder farmers to formal economy systems.

Additionally, a post-project survey may be conducted nine (9) months after the completion of the workshop to assess the continued use and relevance of the knowledge generated, as well as the progress of participating economies in promoting initiatives related to digital transformation, technology adoption, and the use of digital platforms and applications, including AI-driven solutions, for smallholder farmers. The results of this follow-up will provide insights into the sustainability and replicability of good practices identified through the project.

It is expected that the content of the final publication will be an informative tool to support decision-making for future initiatives that strengthen agricultural formalization and technology adoption throughout the region. The project manager will ensure that the report can be easily accessed and downloaded through the available dissemination channels.

Direct Labour

Please see Project Proposal in Supporting Documents folder.

Are there any supporting document attached?

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Project No.
Project Title
Project Status
Fund Account
Sub-fund
Project Year
Project Session
APEC Funding
Co-funding Amount
Total Project Value
Sponsoring Forum
Topics
Committee
Other Fora Involved
Other Non-APEC Stakeholders Involved
Proposing Economy(ies)
Co-Sponsoring Economies
Expected Start Date
Expected Completion Date
Project Proponent Name 1
Job Title 1
Organization 1
Telephone 1
Email 1
Project Proponent Name 2
Job Title 2
Organization 2
Telephone 2
Email 2
Declaration
Project Summary
Relevance
Objectives
Alignment
Beneficiaries and Outputs
Dissemination
Gender
Work Plan
Risks
Monitoring and Evaluation
Linkages
Sustainability
Direct Labour
Are there any supporting document attached?
hdFldAdmin
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Secretariat Comments
Reprogramming Notes
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Content Type: Standard Proposal