Castilla y León Extends The Term For Young Farmers To Apply For Guaranteed Loans

The Ministry of Agriculture, Livestock and Rural Development publishes tomorrow in the Official Gazette of Castilla y León the modification of the Order that regulates the Financial Instrument by which the term to access guaranteed loans is extended from six months to one year when the young person farmer joins the agricultural activity or the holders of agricultural exploitation want to invest in it.

The Minister of Agriculture, Jesús Julio Carnero, explained that “the objective is that the whole of the action, be it modernization of farms or incorporation of young people, can be publicly supported with non-refundable aid and the rest with a secured loan “.

The Ministry of Agriculture, Livestock and Rural Development has started the Financial Instrument since 2018 within the framework of the Rural Development Program 2014-2020 supported by the European Agricultural Fund for Rural Development (EAFRD). Castilla y León was the first Autonomous Community in Spain, and one of the first in Europe, to make this type of financial support available to the agricultural and agri-food sector, which is novel within the framework of aid since it allows supporting actions entirely with guaranteed loans or combine the support of the Financial Instrument with a non-refundable grant.

After the implementation of the Financial Instrument by the Ministry and its application for more than three years, the volume of loans formalized makes it possible to show that this form of support is configured as a useful tool to support the execution of actions in the agricultural sector and agri-food.

This is evidenced by the fact that, to date, the amount of guaranteed loans formalized reaches 103 million euros corresponding to 542 applications. These loans are intended to support investments in agricultural holdings and in the agri-food industry, as well as to support the creation of companies by young entrepreneurs.

In addition, other aspects that are also very important that contribute to the success of the Financial Instrument are the great agility it has in management, which means that applicants can receive the resolution within a month from the request and, if it is favorable, go to your financial institution to formalize the loan. On the other hand, unlike the non-refundable grant, the Instrument can support investments that have already started.

Where to go
In order for the interested parties to access the guaranteed loans, it is necessary to go to any of the offices of the banking entities that are attached to the Financial Instrument. The Ministry of Agriculture, Livestock and Rural Development will immediately resolve the requests received in these offices.

The catalog offered by the Financial Instrument includes loans of a duration of 3, 5, 8, 10, 12, 15 and 20 years of life, considering the possibility of between one and three years of grace, which may be four for loans to twenty years.

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