The European Investment Bank Group announced Tuesday a EUR 3 billion financing package for agriculture, forestry and fisheries across Europe along with moves to bolster farm insurance.
The support is the largest EIB-backed financing initiative for European agriculture and will be directed towards small and medium-sized enterprises (SMEs) as well as mid-caps. The financing is to be spread over the next three years, with the first loans due to be signed in the first half of 2025. The EIB Group loans will be matched by other participating financial institutions, unlocking close to €8.4 billion of long-term investments for the bioeconomy sector.
A share of the loans will be earmarked for young or new farmers because they generally have more trouble obtaining traditional bank financing. The support will also target female farmers to overcome a gender imbalance in agriculture as well as green investments to help farmers make the green transition a success, in support of the European Union’s sustainability goals.
“Our investments are a part of a holistic approach, working with the European Commission, to support innovation and help build the sustainability and resilience of small businesses involved in every part of the broader bioeconomy and agriculture sectors,” said EIB Group President Nadia Calviño.
The financing package was welcomed by the European Commission. “I welcome the strong commitment of EIB in favour of the EU farming community, especially for young farmers and women farmers. Bridging the financing gap in the sector is vital, and with the EIB Group’s support we are giving agriculture the tools to thrive and grow.”
As part of its increased support for the bioeconomy, the EIB Group is exploring ways to improve agricultural insurance against the more frequent incidents of extreme weather including floods and droughts. It will work with the European Commission, the insurance industry and other stakeholders to examine options for enhancing EU level support of current insurance schemes coupled with pan-European measures to accelerate investment in climate adaptation or to provide more liquidity and credit risk coverage for companies affected by climate disasters.
Source: EUbusiness
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