For more than 25 years, Root Capital has partnered with small and growing agricultural businesses to grow the prosperity and resilience of smallholder farming communities who steward critical landscapes. Their model combines finance with advisory services and market intelligence, enabling local enterprises to thrive whilst at the same time strengthening communities and protecting natural ecosystems.
As the pressures of climate change intensify and regulatory measures such as the European Union’s Deforestation Regulation (EUDR) come into play, Root Capital has expanded its focus to help agricultural cooperatives and smallholder farmers navigate these complex, changing dynamics. Compliance can be the difference between a farmer’s access to key markets and exclusion – the latter posing a serious threat to rural livelihoods and farmer incomes.
Risk of smallholder exclusion
One of the major concerns around EUDR implementation is the significant risk of exclusion for smallholder farmers. Many lack the tools, training, or infrastructure to comply with complex regulatory requirements. Without access to accurate digital farm data (geolocation data) or support in interpreting data on potential non-compliance risks, they may find it difficult to prove that their farms are deforestation-free. In high-risk areas, a lack of evidence could lead to entire cooperatives being excluded from supply chains.
In light of this, Root Capital has been working with Satelligence since 2023 to support a new approach: combining high-quality geospatial data with hands-on training to empower cooperatives with the supply chain analysis tools and practical knowledge they need to meet EUDR requirements. This collaboration was borne from a shared belief that smallholders must not be left behind in the drive towards more sustainable and transparent supply chains.
Earlier this year, our Business Development Director Nanne Tolsma met with Root Capital’s Business Development Manager for Mexico and Central America, Marco García Figueroa, to discuss the collaboration and learn more about how the company sees the role of data and partnerships in building more regenerative and resilient supply chains.
Supporting client autonomy
Before the partnership with Satelligence, Root Capital had already taken steps towards environmental monitoring by providing its clients with the tools, training, and information management solutions to collect and analyse farm coordinates. This location data was primarily used for certification compliance and internal business intelligence use, rather than linked to formal deforestation risk assessments.
When the EUDR came into focus, Root Capital recognised a need to deepen its support for its clients. The data that had already been collected could serve a broader purpose, expanded with Satelligence’s accurate geospatial analysis. “Since working with Satelligence, we’ve expanded our scope of support for our clients to help them assess their deforestation risk,” Marco notes. “This has been really important with such an important regulation affecting the EU market.”
For Root Capital’s client base (which spans coffee, cocoa, grains, and nuts across South America, Mexico and Central America, Africa, and Asia), this new capability is a game-changer. Currently implemented in Marco’s region for coffee production, where up to 70% of the exports from Root Capital’s coffee clients are destined for Europe, he shares that integrating Satelligence’s service has been an interesting process with some initial challenges. Variations in GPS accuracy, differences in data collection methods, and the request from some producers to map even very small farms under the stipulated 4 hectares, all added complexity. “It has been quite interesting to see, especially with polygons where they overlap or go outside of the scope of the farms. But it’s all part of the process. We’ve been trying to empower our clients to decide on the geodata they want to collect through these tools, to help them make the best decisions for themselves.”
Farmer-first approach
In order to make a long-lasting impact, Root Capital saw the necessity of transferring practical skills and knowledge to smallholder farmers, putting the power of decision-making directly into the hands of the cooperatives and producers. “We started running workshops to train our clients in the regulation,” Marco explains. “We provide training specific to the tools they need for data collection, and then we enable them to connect to the Satelligence service.”
This way, farmers can now view and analyse their own plots, monitor deforestation risk in real time, and respond proactively – all are critical advantages in the context of a regulation where data inaccuracies can have significant consequences. But this model doesn’t only support EUDR compliance. It also enables cooperatives to make more informed commercial decisions, such as which farmers are best suited for the European market than others. “If they already know how EUDR compliance is going across all of their farms,” Marco notes, “they can take a position and say, ‘Okay, this group of farmers is ready for the European market. This group needs more assistance’. They can plan ahead and distribute their resources in order to support farmers in advance.”
Accessibility creates opportunity
One of the biggest challenges faced by smallholders and cooperatives when it comes to EUDR compliance is access to technology; affordability, awareness, and usability remain barriers across rural supply chains. This partnership between Root Capital and Satelligence is a step forward in removing those barriers, not only through tools but also through capacity building and engagement. “Technology is usually not an affordable solution for many of these organisations,” says Marco. “And sometimes they are just not aware of specific tools at their disposal.”
But with the advance of mobile technology, AI, and geospatial analytics (as well as growing interest from the philanthropic sector), Root Capital sees an opportunity for scalable change. “I definitely see that… those tools will become more accessible and affordable, but also accessible to the farmers themselves thanks to mobile devices. It makes it easier for [supply chain partners and funders] to visualise the impact because the farmers are directly involved in the process.”
By building on the success of this collaboration and centering farmer access to both tools and decision-making ability, Root Capital is making strides towards a more inclusive compliance landscape. The stakes of sustainability regulation are growing, and with them, the need for systems that don’t unnecessarily exclude key stakeholders. “This project will have been very valuable to show the important role producers play in stewarding forest landscapes – and it will help us demonstrate the importance of managing deforestation risk as an impact-first lender,” Marco confirms.
Lasting impact
This collaboration demonstrates how high-quality, independently verified data can be a lever for inclusion rather than exclusion. By combining Satelligence’s platform (featuring our highly accurate forest baseline and deforestation risk insights) with Root Capital’s on-the-ground networks and relationships, small and growing agricultural businesses gain supply chain analysis tools to navigate complex regulatory landscapes with confidence and autonomy.
As confirmed by CIAT’s independent assessment, Satelligence offers the most accurate forest baseline globally; this is a key differentiator for supply chain stakeholders facing growing due diligence obligations under the EUDR and similar frameworks.
In high-risk regions where decisions about EUDR compliance and trade rely on data accuracy, this distinction matters. Errors in classification or outdated baselines can lead to the wrongful exclusion of producers. With Satelligence, Root Capital and its partners are working from a solid, transparent foundation to ensure that smallholders are assessed fairly and feel equipped to respond effectively.
This partnership is just one example of how robust geospatial intelligence can translate into real-world resilience for the full scope of a supply chain. By making risk visible and opening up opportunities for mitigation to those who need it most, Satelligence is proud to work with partners such as Root Capital to empower producers, cooperatives, and supply chain actors to navigate new requirements with confidence and clarity.
About Root Capital
Root Capital is an impact-first lender that invests in the growth of agricultural enterprises to build thriving rural communities. By combining access to finance, training, and market intelligence, Root Capital helps small and growing businesses across Africa, Asia, and Latin America unlock opportunities for smallholder farmers. These businesses serve as vital links in the supply chain, connecting farmers to formal markets while promoting sustainable land use and economic resilience.
Disclaimer: Unless otherwise stated, all images are courtesy of Root Capital.
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