InSoil has partnered with the European Investment Fund (EIF) to secure a €10.5 million portfolio guarantee. This guarantee aims to support small and medium-sized farms in their shift toward sustainable agriculture.
This key partnership will provide farmers and agricultural SMEs with essential financial resources. It will enable them to implement greener farming methods and align with the EU’s green transition objectives.
“We are very glad to be teaming up with InSoil again, in order to make financing more readily available for Polish agricultural businesses,” said EIF Chief Executive Marjut Falkstedt. “Boosting alternative financing channels is very important in a difficult period for European businesses. This is even more so for vulnerable segments of the economy like smaller businesses. These businesses are seeking to transition to a more sustainable footing.”
“The agriculture and bioeconomy sector is a strategic sector for the EIB Group. There is a continuous need for investment to upgrade physical assets. We need to enhance use of digital technology in production processes and improve resource efficiency. The sector is mostly made up of farmers, small and medium-sized enterprises, mid-caps and cooperatives. Many are relatively underserved by the financial sector. Especially, agriculture in Poland is facing a number of transitional challenges. These include the succession challenge, technological challenge, or climate adaptation challenge. Thus, enhancing the access to finance to this sector is crucial”, said EIB VP, prof. Teresa Czerwinska “Therefore, we are pleased to announce the signature of the uncapped guarantee under InvestEU in Poland (and Lithuania) with InSoil. This will allow the financial intermediary to offer debt financing on better terms to businesses in agriculture.”
“Agriculture plays a critical role in climate change mitigation because of the soil’s ability to act as a carbon sink. It can store carbon in organic forms for long periods. To speed up the fight against climate change, we need to increase access to capital. This is crucial for small and medium-sized farm owners. They own the majority of agricultural land in Europe,” said Laimonas Noreika, CEO and founder of InSoil. “First of its kind EIF portfolio guarantee marks a crucial step in funding the farmers who fight climate change.”
InSoil has already enabled more than EUR60m in agricultural loans to promote sustainable practices. They aim to modernise equipment and increase working capital in agriculture. To ensure the positive impact of external financing provided to farmers, InSoil’s soil scientists and agronomists collect soil samples. They conduct advanced laboratory tests to measure the levels of CO2 removed from the atmosphere.
