The President of the European Investment Bank (EIB) Group, Nadia Calviño, announced a €3 billion financing package for agriculture, forestry and fisheries across Europe, as well as a boost to farm insurance. The EIB Group’s loans will be complemented by other participating financial institutions, unlocking €8.4 billion in long-term investment for the bioeconomy sector.
It is the largest financing initiative supported by the EIB for European agriculture and will target small and medium-sized enterprises (SMEs) and mid-sized companies. It will cover a period of three years, with the first loans to be closed in the first half of 2025.
A portion of the loans is dedicated to young or newly established farmers, as they have been found to generally have more difficulty in obtaining traditional bank financing. This support also targets women farmers, with the aim of overcoming the gender imbalance in agriculture, as well as green investments, to support the European Union’s sustainability goals.
“Farming is a vibrant part of European life and a driver of our economy and security. The financing from the EIB Group announced today will help secure a future for a new generation of farmers and companies active in the agri-food industry and the bioeconomy value chain,” said EIB Group President Nadia Calviño at the EU Agri-Food Days conference in Brussels.
“I appreciate the EIB’s strong commitment to the EU farming community, especially young people and women in this sector. It is vital to close the financing gap and, with the support of the EIB Group, we are giving agriculture the tools it needs to thrive and develop. We will work closely with the EIB to ensure that this financing opportunity is accessed and delivers results. Together, we are ensuring a sustainable future for this sector,” added Christophe Hansen, Commissioner for Agriculture and Food.
The new funding aims to boost investment in a range of activities, including soil health, digital tools, water management and climate resilience. It is also intended to support training in sustainable farming practices and land acquisition by new or young farmers, thus increasing the 12% share of European farmers under 40 and the 31.6% share of women in this sector.
“We are increasing our support for agriculture and the bioeconomy using a wide range of innovative instruments,” said EIB Vice-President Gelsomina Vigliotti. “Working with partners across the value chain, we aim to address the triple challenge of agriculture: producing affordable food, protecting agricultural production and livelihoods from climate change, and conserving the environment and natural resources.” To ensure favourable lending conditions, the package allows for financing to be complemented with interest rate subsidies or equity grants from national and EU budgets. Participating financial institutions will receive additional advisory support from the Green Gateway programme and an improved online method to assess the eligibility and climate impact of green investment projects, the Green Eligibility Checker.