ASAJA Palencia Alert: The Bonus on Drought Loans is Canceled when You Stop Being a Professional Farmer – Agronews

ASAJA Palencia warns of a significant change in the conditions of preferential drought loans.

According to the technical services of ASAJA Palenciathose who cease their activity as professional farmers or ranchers will lose the right to the maximum application of interest on these loans.

The information, obtained after a consultation with the Junta de Castilla y León, highlights that continuity in the status of professional farmer is crucial to maintain the advantages of these credits.

The aid, according to ASAJA, is closely linked to professional tenure in the field, so any change in the farmer’s status would directly affect his or her eligibility for the subsidy.

A Volume of Loans Without Precedent warns from ASAJA Palencia

The relevance of this notice is amplified when considering the volume of loans requested in the region. To date, the Junta de Castilla y León has received approximately 13,500 loan applications, called last summer, with a total financing potential of 564 million euros.

This amount represents the largest sum requested in the three calls of the regional administration to subsidize interest on preferential credits due to drought.

The Role of Banking Entities and Loan Conditions

Once the banking entities have signed agreements with the Ministry of Agriculture, Livestock and Rural Development to facilitate these loans. Among them are Abanca, Banco Santander, BBVA, Caja Rural de Burgos, and other prominent banks.

The loans, which are granted for a period of five years, include one year of grace period and four years of repayments. With a variable interest rate, interest compensation is 100% for professional farmers and ranchers and up to 40% for other applicants.

The Urgency of the Deadline and the Submission of Documentation

ASAJA emphasizes the urgency of complying with the deadline established for the presentation of the necessary documentation. Those interested have until February 15, 2024 to complete their procedures at participating banking entities.

A Call to Action for the Agricultural Sector

Faced with this scenario, ASAJA Palencia requires all farmers and ranchers to verify their professional status and comply with the required requirements so as not to lose these essential benefits. The association offers itself as a point of consultation and support to resolve any questions and facilitate the process.