Increased funding for land acquisition for agricultural production

Joint-Stock Company “Development Financial Institution Altum” by December 31, 2015 has granted 781 loans for the purchase of land for agricultural production for a total amount of 39.60 million euros and 774 contracts for 38.80 million euros have been concluded.. Experts predict that by the beginning of February 2016, the funds earmarked for loans (40 million euros) will be used up and due to the lack of funding, it will be necessary to stop accepting new applications. In order to prevent a disruption in land acquisition, the government on Tuesday, February 2, approved an increase in funding for the land acquisition lending program by 15 million euros..

The government decided to extend the loan term from 20 to 30 years, which was facilitated by the increase in the price of agricultural land. Meanwhile, loans issued after February 5, 2016 will no longer be subject to the condition of compensating for the increase in the credit interest rate if it increases above four percent per year.

Young farmers will no longer be required to use the services of the National Rural Network consultants. It should be noted, however, that the condition regarding the use of the services of the National Rural Network consultants will be maintained for young farmers who have submitted their application by February 5, 2016.

Rules “Amendments to Cabinet of Ministers Regulation No. 381 of 29 May 2012 “Procedure for granting state support for the purchase of agricultural land for the production of agricultural products”” shall enter into force upon their publication in the Official Gazette "Latvian Gazette".

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Information prepared by:
Ruth Rudzite,
Public Relations Specialist, Ministry of Defense