What agricultural preferential loans can be applied for in 2023?

The Agency for Restructuring and Modernisation of Agriculture (ARMA) informed about the possibility of applying for this year’s financial assistance in the form of preferential loans. What exactly are farmers offered? What loans did they take out in 2022?

The Agency for Restructuring and Modernisation of Agriculture (ARMA) informed about the possibility of applying for this year’s financial assistance in the form of preferential loans. What exactly are farmers offered? What loans did they take out in 2022?

 

ARMA informed about the possibility of applying for this year’s financial assistance in the form of preferential loans. What exactly are farmers offered? What loans did farmers take our in 2022?

On January 23, 2023, on the online application platform, the Agency will provide cooperating banks with limits for new loans and funds for loan subsidies for the year 2023.

Loans for financing a part of investment costs (PR, RR and Z facilities)

  • New loans limited to PLN 150 million,
  • Funds in the amount of PLN 1.1 million as subsidies to cover the interest on the above-mentioned loans.

Loans for restarting production after natural disasters (K01 and K02 facilities)

  • New loans limited to PLN 100 million,
  • Funds in the amount of PLN 3 million as subsidies to cover the interest on the above-mentioned loans.

Loans for restarting pig production discontinued due to ASF (KPS facility)

  • New loans limited to PLN 10 million,
  • Funds in the amount of PLN 100,000 PLN as subsidies to cover the interest on the above-mentioned loans.

Loans with partial repayment of capital for the purchase of agricultural land by young farmers (MRcsk facility)

  • Funds in the amount of PLN 5 million as subsidies to cover the above-mentioned loans.

Farmers can apply for loans at the following banks: Bank Polskiej Spółdzielczości S.A., SGB-Bank S.A., as well as associated and cooperating Banki Spółdzielcze, BNP Paribas Bank Polska S.A., Santander Bank Polska S.A., Krakowski Bank Spółdzielczy and Bank Spółdzielczy in Brodnica.

Loans for restarting pig production discontinued due to ASF (KPS facility) are granted by Bank Spółdzielczy in Brodnica.

How did farmers use preferential loans in 2022?

According to the available data, i.e. calculated as at November 30, 2022, last year banks cooperating with the Agency granted 1,154 investment loans in the amount of PLN 377,166 thousand, and ARMA paid PLN 108,870 thousand as subsidies to cover interest on those loans.

Most loans were granted for the purchase of land (Z facility). 781 such agreements were concluded for the amount of PLN 225,481 thousand.

Exactly 276 farmers (and fishermen) decided to finance investments with loans (RR) in the amount of PLN 134,303 thousand.

Only 96 young farmers benefited from credit facilities in the amount of PLN 17,081,000 for young farmers for the purchase of land (MRcsk). Additionally, one loan for the amount of PLN 300,000 was granted to restart pig production discontinued due to ASF (KPS).

In addition, in 2022 ARMA covered liabilities (interest subsidies) arising mainly from previously concluded loan agreements.

How many disaster loans were granted?

For comparison purposes, it is worth mentioning here how many disaster loans were granted in 2022 (until November 30, 2022).

According to ARMA’s data, 268 such loans were extended for the amount of PLN 23,004,000 from the KO2 facility (working capital disaster loans) and one for the amount of PLN 37,000 from KO1 facility (investment disaster loans).

Thus, in 2022 there were in total 269 disaster loans for the amount of PLN 23,040.62 thousand, and PLN 25,245.47 thousand was paid as interest (but these data also include liabilities resulting from earlier agreements).

See also!

Application collection procedure for irrigation and construction of manure plates to commence soon. Soon, ARMA will launch the application collection procedure for financial aid for investments aimed at protecting waters against pollution with nitrates from agricultural sources as well as farm irrigation systems. The application collection procedure for investments on farms located in Natura 2000 areas is also planned.