[3] It funds and sponsors initiatives that improve land and water management, develop rural infrastructure, train and educate farmers in more efficient technologies, build up resilience against climate change, enhancing market accessibility, and more.

IFAD was established as an international financial institution in 1977 through United Nations General Assembly Resolution 32/107 (15 December 1977) as one of the major outcomes of the 1974 World Food Conference.

Acknowledging that agriculture is the primary livelihood for millions of rural people, IFAD addresses the challenges these communities face, such as climate adaptation, economic instability, and food insecurity.

Through strategic partnerships and financing, IFAD supports initiatives that enable rural populations to enhance productivity, access resources, and build resilience.

Its vision includes fostering innovation and advancing policies that promote equity, with a focus on empowering groups often overlooked, such as women, Indigenous Peoples, and youth.

Observers, including representatives from non-member states seeking membership, the Holy See, the Sovereign Order of Malta, and approved UN agencies, intergovernmental and non-governmental organizations, are also invited to attend.

[11] The Governing Council has full authority over the fund's operations and makes decisions on important matters such as the approval of new members, the election of the President, issues concerning the permanent seat, the administrative budget, and the establishment of policies, criteria, and regulations.

The general operations of the fund are managed by the Executive Board, which exercises authority either directly provided by Agreement of Establishing the IFAD or delegated by the Governing Council.

As 2024, Álvaro Lario, who serves as the President of IFAD, took on the additional role of Chair of UN-Water, the United Nations Inter-Agency Mechanism on All Freshwater Related Issues, Including Sanitation.