To help farm takeovers, the Normandy Region is launching “Normandie Garantie Agri”

Monday January 13, 2025the Normandy Region and its partners launched the “Normandy Agri Guarantee” systemfrom a farm in Calvados, Gaec Le Triangle in Saint-Pierre-en-Auge.

Because the heavy investments necessary for the recovery of most farms are one of the obstacles to generational renewal.

This fund will make it possible to raise 260 million euros in the form of a loan and support between 1,000 and 2,000 projects by 2028.

Hervé Morinpresident of the Normandy Region, Clotilde Eudiervice-president in charge of agriculture, fishing and forestry, and Ambroise Fayolle, vice-president of the European Investment Bank Group which includes the European Investment Fund (EIF)presented this device. And they signed agreements with partner banks (Crédit Agricole, Crédit Mutuel-CIC, Bred-Banque Populaire).

“This system is a loan guarantee fund intended for agricultural, forestry and equine businesses. This is a complementary tool to subsidies, which also makes it possible to improve access to bank loans. Thanks to the support and expertise of the FEI which was mandated by the Region for its implementation, Normandy is equipped with this new loan guarantee tool, to complete the range of tools and put all the means to develop, modernize and transmit agricultural, equine and agri-food businesses in Normandy,” explains the Region.

Facilitate access to financing

According to the Ex Ante evaluation of the 2020 European funds, Normandy is experiencing market failures in terms of access to financing by economic actors in the agricultural, agri-food, forestry and equine sectors.

During consultation with professionals in 2021-2022, the loan guarantee project received a favorable reception, and the various banking establishments consulted expressed expectations for this type of tool.

“Thank you to the banks for agreeing to participate in this fund. In Normandy, we have good agricultural dynamics both in terms of installations and investments,” welcomes Hervé Morin.

“The European Investment Bank Group has made the agricultural sector a financing priority. The establishment of this guarantee responding as closely as possible to the investment needs of farmers demonstrates that together, region, Europe and banking partners, we can provide concrete and effective responses in order to strengthen this essential sector of activity in Normandy. », underlined Ambroise Fayolle, vice-president of the EIB Group.

The Region's desire is to “facilitate access to credit in order to enable the realization of projects, the creation and takeover of agricultural operations, or the development of new activities; promote better access to financing for risky projects, for beneficiaries who have difficulty accessing credit, or for new businesses; reduce the conditions and guarantee requirements of financial intermediaries (banking establishments); limit the cost of the guarantee for project leaders. »

The purchase of land not eligible, except for JA and New Farmers

To set up this system, the Normandy Region approached the EIF and mobilized EAFRD 2023-2027 funds (Editor's note: European funds). “This guarantee fund is endowed with 35 million euros (21 million from EAFRD funds and 14 million from Region funds). The loans made by the selected banks (Crédit Agricole, Crédit Mutuel-CiC, Bred-Banque populaire) will create a leverage effect on the allocation. In return, banks undertake to improve the conditions of access to bank credit for final beneficiaries (reduction of interest rate/personal guarantees, consideration of riskier financing, etc.). This guarantee fund must make it possible to finance tangible and intangible investments (consulting services, training, project management services, etc.), as well as the need for working capital. »

“The purchase of land is not eligible, except for Young Farmers and New Farmers who benefit from installation aid. The purchase of land is in this case limited to 150,000 euros,” the Region also specifies.

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