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Billion dollar fund for young farmers in Europe
The European Investment Bank and European Commission have jointly established a €1 billion investment fund for the agricultural sector. The vast majority of this is intended to support farms. Young farmers in Europe in particular can count on a financial injection.
One aim of the fund is to give young farmers better access to financing options. Research among more than 7.500 farmers in 24 European member states shows that financing applications from young farmers are more often rejected. This is because they are often unable to provide collateral and the risks are estimated to be higher.
Favorable financing conditions
Approximately €700 million will be made available to small and medium-sized companies active in agriculture and/or bioeconomy. At least 10% of this budget will go to farmers under the age of 41. Favorable financing conditions apply to this group, such as a grace period of 5 years and longer lead times.
Of the remaining amount, approximately €200 million has been made available to combat climate change in the agricultural sector; an additional €75 million will go to young farmers. The budget is made available by various national banks in Europe. This with the aim of increasing the financing amount to approximately €2 billion by means of leverage constructions.
The initiative has been well received by CEJA, the European umbrella organization for young farmers. Jannes Maes, the Dutch chairman of the CEJA, speaks of a promising plan for young farmers who want to take steps.
Wouter Job
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