The European agricultural sector is on the cusp of a transformative opportunity. While recent data from the European Commission highlights a significant €62 billion financing gap, particularly impacting small farms and young farmers, this challenge presents an enormous potential for growth and innovation. By closing this financing gap, we can not only support the sector’s development but also accelerate its transition towards sustainable and regenerative practices. The challenges faced by Europe's agricultural SMEs are multifaceted. Traditional financial institutions often perceive farming as a high-risk venture, leading to stringent lending criteria that many small-scale farmers cannot meet. This financial exclusion stifles innovation and prevents the adoption of regenerative agricultural practices essential for combating climate change. Agreement signed in Luxembourg with the Vice President of the European Investment Bank prof. Teresa Czerwińska and Marjut Falkstedt, Chief Executive of the European Investment Fund, mark an important step forward to providing accessible financing solutions tailored to the unique needs of farmers. Direct guarantee agreement is poised to unlock around €15 million in new debt financing for approximately 550 farmers in Poland and Lithuania. Together, we are empowering farmers to achieve sustainable transformation, fostering resilience, growth, and environmental stewardship across European agriculture.
Bravo
Partner at Simmons & Simmons
1moAmazing, congratulations!