Loans to farmers – possibilities of financing agricultural activity.


A farm and an enterprise need investment to be able to develop. Buying new land, agricultural machinery and financing new technological solutions is not cheap. Without this, however, farming would be backward and unprofitable. But where can you get money for such expenses? The answer is simple, loans to farmers offered by various financial institutions.

Loans to farmers is a special offer prepared by various banks that is tailored to the client’s needs. It is worth remembering that farms do not always have an established business activity and their revenues usually depend on the season. Farmers’ activities are also supported by various financial projects prepared by the State and the European Union. What financial products do farmers have to choose? Here are some of the most interesting suggestions.

Loans to farmers – preferential loans

Loans to farmers - preferential loans

These are investment loans with special interest subsidies from ARiMR, i.e. the Agency for Restructuring and Modernization of Agriculture.

The reference loan offer can be used, among others, by:

  • natural persons with full legal capacity and who are not pensioners with a fixed entitlement to an invalidity pension,
  • legal persons,
  • organizational units without legal personality.
  • entities that are micro, small or medium-sized enterprises (SMEs) that are not in difficulty and who are not yet subject to an unrealized obligation to repay the aid resulting from a previous decision of the European Commission declaring the aid to be unlawful and incompatible with the internal market.

Preferential loans are granted for:

  • purchase of agricultural land;

  • resumption of production on farms and special departments of agricultural production in which there was damage caused by natural factors e.g. drought, hail, frost, flood, hurricane, lightning, landslide or avalanche, provided that damage to agricultural crops and livestock does not exceeded 30% of the average annual agricultural production;

  • purchase of machinery and installation of agricultural machinery and equipment;

  • equipment for agricultural production, storage, storage and preparation of agricultural products for sale;

  • purchase of shares in companies conducting the processing of agricultural products or fish, as well as for the purchase of shares in companies conducting artificial insemination.

Loans with a Best Lender guarantee

Loans with a Best Lender guarantee

Loans with the Best Lender guarantee are intended for farmers running small and medium enterprises. The project prepared by the European Union allows you to receive financial support to secure the loan up to 80% of the amount. The guarantee period for a working capital loan is up to 27 months, while for an investment loan it is up to 99 months.

Thanks to this, it is much easier to obtain funding and, in addition, farmers do not have to pledge their own assets to secure the loan. In the event of problems with repayment of the loan due to, e.g. natural disaster, it will be made by the guarantor. Receiving a Best Lender guarantee also makes it easier for banks to grant loans.

Other types of loans farmers can apply for

Other types of loans farmers can apply for

In addition to preferential loans, farmers can take advantage of a banking offer prepared especially for them. These are loans for farmers for the purchase of land or agricultural machinery.

A similar offer also applies to loans for the purchase of agricultural machinery. You can buy new and used machines for the loan. The minimum loan amount is USD 30,000, while the maximum offer depends on the bank. However, it is important that the loan can cover up to 95% of the purchase value.

Of course, you can also use the offer of cash loans that can be used for any purpose. The amount is up to USD 500,000, and the loan period is up to 12 years. Such a loan makes it possible to make quick investments in a farm or to maintain financial liquidity in a more difficult situation.

The agricultural loan offer is very wide. When applying for funds for development and investment in a farm, it is worth first of all to take advantage of the offer of preferential loans and with the Best Lender guarantee, which will significantly facilitate the repayment of financial liabilities.