(29 April 2019) – The European Commission and the European Investment Bank (EIB) launched today a €1 billion loans package targeting specifically young farmers.
In 2017, 27% of the loan applications submitted to banks by EU young farmers were rejected, compared to only 9% for other farms.
The programme will address many of the current shortcomings that farmers face with: lower interest rates; longer periods of up to 5 years to start repaying the loan; longer periods to pay back the whole loan (up to 15 years); added flexibility, depending on the conditions, to respond to price volatility in the agricultural sector to ensure that farmers remain able to pay loans back in difficult periods.
Two pilot loans of €275 million are about to be implemented in France through this scheme. These loans are specifically targeted at young farmers and climate change mitigation.