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 €1 billion package announced today by Commissioner for agriculture Phil Hogan and EIB Vice-President Andrew McDowell, aims at increasing access to funding for EU farmers, especially young farmers.
Two pilot loans of €275 million are about to be implemented in France. These loans are specifically targeted at young farmers and climate change mitigation.
This new loan programme is part of a joint ‘Young Farmers’ initiative’ between the European Commission and the EIB that aims to bring together existing European Agricultural Fund for Rural Development (EAFRD) support and the financial means and expertise of the EIB. In addition to the loan package, it aims at continuing the use of the EAFRD grants for young farmers.