EIB launches 3 billion euro investment fund for European young farmers

The European Investment Bank (EIB) has announced the establishment of a 3 billion euro investment fund dedicated to supporting sustainable agricultural investments. This fund, known as the “Pan-European Agriculture Program,” is set to be the largest agricultural financing initiative by the EIB to date, with funding allocated for the years 2025 to 2027.

Targeted primarily at young farmers, the program is designed to promote green investments, gender equality in agriculture, and strategies that reduce greenhouse gas emissions, enhance biodiversity, and support the circular economy. The initiative reflects a significant commitment by the EIB to support the sector’s transition towards more sustainable and environmentally friendly practices.

EIB President Nadia Calviño is expected to detail the new agricultural program at the upcoming Agri-Food Days in Brussels on December 10. The bank typically collaborates with commercial and promotional banks within EU member states to facilitate the distribution of these subsidized loans. Eligible farmers will be able to access these funds through local banks for approved projects.

This new initiative partly responds to recommendations from the Strategic Dialogue on the Common Agricultural Policy (CAP), chaired by Professor Peter Strohschneider. The dialogue suggested that the EIB launch a specialized credit program for the agricultural and food sectors. Additionally, it recommended the establishment of a temporary “Agrifood Just Transition Fund (AJTF)” to complement the EU’s agricultural budget.

The strategic focus on young farmers aims to address significant financing gaps that hinder entry and expansion in the agricultural sector. According to Rudolfs Pulkstenis, Vice President of the European Council of Young Farmers (CEJA), access to financial resources remains one of the primary obstacles for young individuals pursuing agricultural careers. Pulkstenis highlighted that the financing gap in European agriculture totals 62 billion euros, with 22 billion euros directly affecting young farmers. This EIB program is seen as a critical step in bridging this financial divide.