European Investment Bank (EIB) Group President Nadia Calviño has announced a €3 billion financing package for agriculture, forestry and fisheries across Europe along with initiatives to bolster farm insurance. This announcement is the largest EIB-backed financing effort for European agriculture to date, and is expected to unlock approximately €8.4 billion in long-term investments in the bioeconomy sector through matched funding from other financial institutions.
The funding will be spread over the next three years and will be directed specifically towards small and medium-sized enterprises (SMEs) as well as mid-cap companies, with the first loans due to be signed in the first half of 2025. A significant portion of the financing will be allocated to young and new farmers because they generally have more trouble obtaining traditional bank financing. The support will also target female farmers to overcome the gender imbalance in agriculture as well as green investments to help farmers make the green transition a success, in support of the European Union's sustainability goals.
Commissioner for Agriculture and Food, Christophe Hansen, said: "I welcome the strong commitment of EIB in favour of the EU farming community, especially for young farmers and women farmers. Bridging the financing gap in the sector is vital, and with the EIB Group's support we are giving agriculture the tools to thrive and grow. We will closely work with the EIB to make sure that this financing opportunity is taken up on the ground and delivers results. Together, we're securing a sustainable future for the sector.”
The financing package will support investments in a range of areas, including soil health, digital farming tools, water management, and climate resilience. Training programs in sustainable farming practices and financial support for land acquisition by young farmers will also be prioritized. All in all, these measures aim to address demographic disparities in agriculture, where only 12% of farmers are under the age of 40 and 31.6% are women.
“We are stepping up our support for agriculture and the bioeconomy using a wide array of innovative tools," said EIB Vice-President Gelsomina Vigliotti. "Working with partners along the whole value chain, we aim to help meet agriculture's triple challenge of producing affordable food, protecting farm production and livelihoods in the face of climate change and preserving the environment and natural resources.”
To ensure favourable loan terms, the package allows for the financing to be complemented by interest rate subsidies or capital grants under the EU and national budgets.
Additionally, the EIB Group is exploring ways to improve agricultural insurance against the more frequent incidents of extreme weather including floods and droughts. Working with the European Commission, the insurance industry, and other stakeholders, the EIB plans to accelerate investment in climate adaptation and provide more liquidity and credit risk coverage for companies affected by climate disasters.
The announced funding forms part of the EIB’s contribution to the Strategic Dialogue on the Future of EU Agriculture, launched by European Commission President Ursula von der Leyen in January 2024. The Dialogue is a new forum that aims to develop a joint understanding and shape a shared vision for the future EU farming and food system.
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