Loans for investments, including sustainable investments, into agricultural holdings

What are the benefits?

In the implementation of the measure according to the Strategic Plan for Lithuanian Agriculture and Rural Development 2023–2027, loans are given for:

  • activities related to sustainable investments into agricultural holdings in order to promote sustainable production of agricultural products, supporting investments that contribute to climate change mitigation and adaptation, also to production of renewable energy and higher animal welfare standards. EUR 5 million of the strategic plan funds are going to be assigned for loans of this purpose, which consist of the funds of the European Agricultural Fund for Rural Development (EAFRD) and co-financing from the Republic of Lithuania. The budget of the measure will also be supplemented by selected financial intermediaries with their own private funds constituting at least 30 percent;

  • activities related to investments into agricultural holdings, aimed at supporting modernisation of agricultural holdings, increasing the competitiveness of the agricultural sector, encouraging creation of agricultural products of higher added value, introducing innovations, new technologies, also supporting and digitalising sustainable production of agricultural products. EUR 30 million of the strategic plan funds are going to be assigned for loans of this purpose, which consist of the funds of the European Agricultural Fund for Rural Development (EAFRD) and co-financing from the Republic of Lithuania. The budget of the measure will also be supplemented by selected financial intermediaries with their own private funds constituting at least 30 percent.

Who is eligible?

Preferential loans can be used by:

  • farmers who have registered a farm and an agricultural holding in their own name;
  • legal entities or their group that have registered an agricultural holding and are engaged in agricultural activity and/or treatment and/or processing of agricultural products produced and/or grown in the holding(s) and their placement on the market;
  • recognised agricultural cooperatives that purchase and sell agricultural products produced or grown only in the holdings of their members; or agricultural products bought from their members that are produced in their holdings; or grown agricultural products that they process or sell food and non-food products produced from them.

The measure is implemented in the whole territory of the Republic of Lithuania. Borrowers, registered in the Capital City Region*, can be given no more than 20 percent of the measure funds, the remaining 80 percent are reserved for the Middle and Western Lithuania Region.

*The Capital City Region consists of the Vilnius county municipalities; the Middle and Western Lithuania Region consists of Alytus, Kaunas, Klaipėda, Marijampolė, Panevėžys, Šiauliai, Tauragė, Telšiai, and Utena counties.

For more information, please follow this link.

How much?

A borrower can be given one loan for sustainable investments into agricultural holdings and one loan for investments into agricultural holdings.

The loan amount cannot exceed the amount of EUR 200,000 and the restrictions indicated in subparagraph 11.7 of the financial instrument scheme must be observed.

Important note: In case there is both a loan and a grant, when a financial intermediary takes a decision on granting a loan, the GGE (gross grant equivalent) of the loan shall be calculated and specified to the NPA. The NPA, having received information on granting of a preferential loan and the calculated GGE, shall, with regard to the GGE, calculate the overall aid intensity and adjust the amount of investment support for the applicant.


Terms

Loans intended for financing investments or investments and working capital shall be given for a period not longer than 60 months (5 years).

Loans intended for financing only working capital shall be given for a period not longer than 36 months (3 years).

Loan agreements shall be signed and loan money shall be released until 31 December 2029 at the latest.