Nearly half (46%) of all loans issued under LANDE’s European Investment Fund (EIF)-backed guarantee programme during its first six months in Latvia and Lithuania have been granted to farmers under the age of 40.

The finding is particularly significant given that farmers under 40 manage only around 12% of agricultural holdings across the European Union, highlighting the growing importance of improving access to finance for the next generation of farmers.

The findings also reflect one of the key priorities of Latvia’s Common Agricultural Policy (CAP) Strategic Plan, which identifies the low share of young farmers as a challenge for the future of the agricultural sector. The strategy foresees additional support for younger and new farmers to encourage generational renewal and strengthen the long-term competitiveness and resilience of Latvian agriculture.

In this context, the early results of the EIF-backed guarantee programme are particularly significant. Although the facility was designed to improve access to finance for micro agricultural businesses more broadly, rather than targeting any specific age group, younger farmers have naturally emerged as one of its largest beneficiary groups.

“That tells us something important about how agriculture is changing. Farmers today can no longer plan with the same certainty five or ten years ahead as previous generations could. Climate risks, market volatility and changing input costs require businesses to adapt much faster. Financing needs to evolve alongside these changes – it should support farmers’ ambitions and adapt to the realities of modern farming, rather than forcing farmers to adapt their businesses to fit traditional financing models,” says Ņikita Gončars, Founder and CEO of LANDE.

Improving access to finance for younger farmers has become an increasingly important priority across Europe. Through InvestEU, the EIF-backed guarantee programme helps address this challenge by covering up to 80% of the credit risk on eligible loans of up to €50,000, enabling financing on more favourable terms.

“Our objective is to bridge the gap between the financing needs of small farmers and the solutions available in the market. These first results are particularly encouraging because they demonstrate that guarantee instruments make a real difference, helping to improve access to finance for the next generation of European farmers. Partnerships with specialised financial intermediaries like LANDE can deliver tangible impact where it is needed most,” says Marjut Falkstedt, Chief Executive at European Investment Fund.

Following its initial rollout in Latvia and Lithuania, the programme’s first six months indicate that this model could strengthen access to finance for younger farmers in other European markets facing similar demographic and financing challenges.