The German Landwirtschaftliche Rentenbank has provided fewer loans to farmers in the first half of 2020 than in the first half of 2019. In particular, less was invested in renewable energy.
The sharply decreasing investment in this category is associated with the last amendment of the German Renewable Energy Act in 2017. The total amount of renewable energy loans disbursed at the Rentenbank fell this year from EUR 504 million in the first half. from 2019 to 341 million euros. The decrease in one year amounted to no less than 32,3 percent. It should be noted, however, that the corona pandemic has caused reluctance to make investments.
More machine financing
In addition to decreased investments in renewable energy, investments in stable construction and land acquisition also decreased. By contrast, the demand for credit for machines increased in the first half of 2020, according to the figures from Rentenbank.
The Agriculture and Food Industry division recorded a decline of 7,4% to €540 million. In total, the volume of loans granted for all 4 financing divisions, namely rural development, agriculture, agriculture and food industry and renewable energy, decreased by 1,2 percent. In the first half of 2019, Rentenbank made a total of approximately €3,18 billion available, in the first half of 2020 this fell to approximately €3,14 billion.
Additional rural investments
The investments in the 'Rural Development' division saved the turnover of the Rentenbank. Contrary to the trend of declining investment, this category rose by no less than 27,6 percent. The Landwirtschaftliche Rentenbank mainly provided loans to development institutions of the German government. In total, rural development loans amounted to approximately €1,12 billion.
Corona pandemic financing
The bank draws attention to the liquidity guarantee program that it has been offering since the corona outbreak in March 2020. Companies affected by corona can make use of this. In the first half of 2020, the amount lent to secure the liquidity of companies amounted to €18,1 million. In addition, Rentenbank has been providing guaranteed loans together with the Federal German Ministry of Agriculture since April 2020.
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