Investment support for agricultural holdings helps to modernize farms

From April 2 to May 31 applications are accepted for investment support under the Lithuanian Agricultural and Rural Development 2023-2027. strategic plan (SP) intervention measure “Investments in agricultural holdings” (for grants and loans).

The aim of the intervention measure is to support the modernization of agricultural holdings, increasing the competitiveness of the agricultural sector, promoting the creation of agricultural products with greater added value, introducing innovations, new technologies, promoting sustainable production of agricultural products and digitizing it.

The benefit of the support is a modernizing farm

Support for investments is one of the most significant and popular supports during all periods of its provision. National Paying Agencies (NMA) in 2024 March 29 according to data, according to the Lithuanian Rural Development 2014-2020 program (KPP 2014-2020) measures “Investments in material assets” activity area “Support for investments in agricultural holdings” submitted 10,963 applications, of which 6,968 were allocated almost 695 million. euros.

“In 2022 I submitted an application under the RDP 2014-2020. activity area “Support for investments in agricultural holdings”. The total value of the project is 137 thousand. euros, and the intensity of the support is 70%, because when evaluating the project, additional points were given as a young farmer”, – Eimantė Laucevičienė, who develops breeding sheep farming in the Šiauliai district, emphasizes the attention to support for young farmers. Together with her husband Evald, she raises Suffolk sheep.

Farmers allocated the largest part of the support to building infrastructure. “We have established Avidė in the cowshed of Ketūnai Manor, built in 1928. The building was in need of repair, so we renovated it using the support. We also repaired the nearby former manor stable, built in the same year, which we had not used until then. Thus, by using the support, we not only improved the sheep keeping conditions, but also expanded their keeping area and now we can increase the herd, – the benefits of the support are reviewed by the farmers. – During the implementation of this project, we also purchased an automatic sheep feeder and other equipment that allows for smart enough farming.”

Features of this invitation

The possibilities provided by the SP intervention measure “Investments in agricultural holdings” are actively used. November 6 – December 29 159 applications were submitted.

During the call, which runs until May 31, applications for support can be submitted by both farmers and legal entities who have registered a farmer’s farm and holding in their own name, engaged in agricultural activities and/or processing of agricultural products produced and/or grown on the holding , including primary production and placing on the market. Support is provided to dairy and meat cattle breeding and other animal breeding, plant breeding, horticulture, berry growing and horticulture sectors.

Supported activities:

* Production of agricultural products, including production of agricultural products by a recognized agricultural cooperative in the holdings of its members.

* Processing of agricultural products produced and/or grown on the agricultural holding, including primary processing, and supply to the market or processing of agricultural products produced or grown by a recognized agricultural cooperative only from its members on their holdings and sale of food and non-food products produced from them .

The maximum support for the project cannot exceed EUR 500,000 when a non-refundable grant is provided, and EUR 700,000 when a non-refundable grant and soft loan are provided.

Support intensity – no more than 50 percent. of all eligible costs. For young farmers applying for support within a period of five years from the date of their establishment under this intervention measure for the first time, the intensity of support can be increased by 20 percentage points.

Eligible expenses

When the support is provided as an investment support (non-refundable grant), it can be used to purchase new agricultural machinery, equipment, technological equipment, computer and software. It is possible to buy new vehicles of category N (only milk trucks, trucks for transporting farm animals, vehicles with a temperature regime), new unmanned aerial vehicles (drones), which are assigned to a special category and whose maximum take-off weight exceeds 25 kg. The purchase of perennial plants and their planting works are financed (by contract).

The funds can be used for the activities envisaged in the project in the agricultural sector for the new construction, reconstruction, capital or simple repair of necessary buildings and/or structures, only in the case when the elements of the solar energy light power plant are installed on the roof of the existing (completed construction) building, for new to purchase building materials.

When the support is provided in the form of a soft loan, the funds can be used for investments in tangible assets necessary to carry out activities in the agricultural sector, in intangible and biological assets, to replenish working capital.

for No. 2024/09