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Non-repayable loans for young farmers

Agriculture is one of the sectors that is offering more satisfaction,

Agriculture is one of the sectors that is offering more satisfaction,

Especially to the younger sections of the population: there are many boys and girls who, due to the difficulties in obtaining a stable and gratifying job, decide to return to the countryside, putting on small and medium-sized companies, with more than satisfactory results. For this reason, a wide range of non-repayable loans for young farmers has been established: these funds are intended to keep the provinces and small rural centers alive, encourage generational turnover on farms and thus improve their efficiency ( as well as the quality of the products), through the inclusion in them of graduated and qualified personnel.

Farms can be of various kinds;

Farms can be of various kinds;

however, the most successful cases are those that place on the market a high quality product, certified and rooted in the territory (for example fine wines, spices, oil, organic and typical agriculture, etc.), or which also support other services with production, like agritourisms or riding schools.

Through the e-commerce phenomenon, these companies manage to get in touch with buyers located also in other parts of the world: there are cases of high quality wines exported to China or Japan, and the possibilities are truly endless, if you work with passion and with an eye on new promotion and sales channels!

Support for young farmers

Support for young farmers

For young farmers who need an economic ‘push’ to start their project, there is a non-repayable loan, disbursed in a lump sum in two installments: the first is disbursed during the initial phases, while it is possible to obtain the second, only if the objectives set in the business plan have been achieved, and therefore following an audit, which also includes the acquisition of skills and compliance with current regulations.

Those young people who are under the age of 40 and who intend to establish themselves on a farm as head of the firm can benefit from this support; they also have a period of 36 months to acquire the necessary professional skills, if they do not already have them at the time of requesting the loan.

The young farmer can be either the sole owner of the company, or one of the owners; it is also possible to access the aforementioned funds, even when the asset belongs to another legal entity, provided that it is demonstrated that it is able to manage and manage the company independently. Therefore, the applicant must personally take on the risks that the management entails, exercising full control over all aspects related to the production, administration and marketing of the products.

How to use the loan

How to use the loan

We also come to another vital issue: how can the loan be used? What aspects of business management can be covered?

The non-repayable loan can be used to cover various expenses, we see which:

  • notary fees and advice;
  • purchase of goods, land, buildings and agricultural vehicles;
  • purchase of the tools necessary for production;
  • cattle purchase;
  • purchase of agricultural production rights.

It should be remembered, however, that in order to obtain funding, it is necessary for the young farmer to certify his willingness to establish himself as a head of company and to hold that position for a period of at least five years. Furthermore, it is necessary to present a precise business plan, ie a detailed plan that explains the various stages of the company’s development, the strategies, the costs, the amounts allocated and the objectives to be achieved within a predetermined period of time: if the project is convincing, the chances of getting good funding will certainly be greater!

Who can you contact to get grants for young farmers?

Who can you contact to get grants for young farmers?

To obtain the financing to start up their own business, or to take over as head of a company in an existing business, the young farmer must submit the application to Invibank, the agency that evaluates the new projects and provides the necessary amounts for their start. In this way it is possible to receive almost total coverage of the initial costs, the costs for training and for the purchase of the machinery.

 

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