Record funding for agriculture: euro3 billion allocated to farmers by the European Investment Bank

European entrepreneurs in agriculture, forestry and fisheries will benefit from a total of euro3 billion in financing from the European Investment Bank (EIB), according to a press release published yesterday on the financial and banking institution's website. This is the largest financing programme supported by the EIB for agriculture in Europe. The package will be aimed in particular at small and medium-sized enterprises (SMEs), being implemented over a three-year period. The first loans will be signed in the first half of 2025. The financial allocations are intended to support young farmers, promote gender equality and stimulate green investments. The financing will be complemented by other participating financial institutions, which will allow the mobilisation of euro8.4 billion for long-term investments in the bioeconomy sector.

A significant part of the funds will be earmarked for young farmers or those new to the sector, who often face difficulties in obtaining traditional financing. The package also aims to reduce the gender imbalance in agriculture by supporting women farmers and promoting sustainable investments, in line with the European Union's sustainability objectives.

Nadia Calvino, President of the EIB, said: "Agriculture is a vibrant part of European life, but also a sector essential for our economy and security. The financing announced today will help secure a future for a new generation of farmers and companies in the agri-food and bioeconomy value chain."

Commissioner for Agriculture and Food, Christophe Hansen, stressed: "I welcome the EIB's strong commitment to the EU farming community, in particular to young and female farmers. This financial support is crucial to ensure the development and growth of the agricultural sector."

• Investing in innovation and sustainability

The new financing covers a wide range of activities, including: improving soil health; implementing digital tools in agriculture; managing water resources and increasing climate resilience; purchasing agricultural land for young farmers; training in sustainable agricultural practices; innovative initiatives for resilient agriculture.

The EIB financing also looks at ways to improve agricultural insurance to ensure farmers are effectively protected against damage caused by extreme weather events such as floods and droughts. In collaboration with the European Commission, the insurance industry and other relevant stakeholders, the EIB is exploring options to extend this support across Europe. These initiatives include climate adaptation, providing additional liquidity and covering credit risks for companies affected by natural disasters.

The new initiatives are part of a broader action plan under the "Strategic Dialogue on the Future of EU Agriculture", launched by European Commission President Ursula von der Leyen in January 2024. The action plan includes several layers:

- risk debt programme: loans for innovative companies in the agricultural sector, including the development of sustainable technologies;

- guarantee schemes: using European rural development funds and national resources within the CAP strategic plans;

- private equity programmes: supporting European funds focused on innovative technologies in agritech and foodtech;

- broadening the scope of direct lending: including cooperatives, farmer organisations and agricultural infrastructure management entities;

- support for rural infrastructure: roads, education and water management for agricultural holdings.

The funds allocated by the EIB will finance projects that will comply with the Paris Agreement on climate change mitigation. With this financing package, the European Investment Bank is making a decisive contribution to the transformation and modernisation of European agriculture. The support provided to young farmers, women and sustainable projects is an essential step towards ensuring a balanced and prosperous future for the agricultural and bioeconomy sector of the European Union.