Young farmers, facilities for farm expansions

ISMEA has launched an open-door measure aimed at providing incentives, with interest-free loans and non-repayable financing, for the takeover and expansion of youth-run businesses. Eligible expenditure also includes machinery

ISMEA (Istituto Servizi per il Mercato Agricolo / Institute for Agricultural Market Services) has launched the portal to manage the open-door measure called "Più impresa" (More enterprise) established by the Decree of the Ministry of Agriculture, Food and Forestry of 20 April 2021 (published in the Official Gazette on 8 June 2021).

This is a new incentive tool aimed at young farmers, which expands and implements the advantages of the old Ismea tool of "self-entrepreneurship". It finances throughout the country the takeover and development of farms, through zero-interest loans and contributions up to 35% non-refundable. "The measure covers investments of up to EUR 1.5 million (excluding VAT), for a period of between 5 and 15 years, aimed at expanding an existing business or launching a start-up project as part of a generational changeover operation. The beneficiaries of the aid are micro, small and medium-sized farms organised as sole proprietorships or companies, managed and run by young people aged between 18 and 41.

The aid consists of a non-repayable contribution of up to 35% of eligible expenditure and an interest-free loan of up to 60% of eligible expenditure, i.e. aimed at developing or consolidating agricultural production, the processing and marketing of agricultural products and the diversification of agricultural income.

This allows for the financing of feasibility studies to the extent of 2% of the total value of the investment to be made; agronomic and land improvement works eligible for projects in the primary agricultural production sector only; building works for the construction or improvement of real estate; charges for the issuing of building permits; machinery, equipment, connections and installations; design services, multiannual assets.

The potential of the new processing plants - reads the Ismea website - must not exceed 100% of the estimated production capacity of the farm in question. This tool is not available for funding drainage works, facilities for the production of biofuels and for the production of thermal energy and electricity from renewable sources, investment in the replacement of existing assets, DIY works, used plants and machinery, and working capital. The beneficiary company must provide guarantees of a value equal to 100% of the subsidised loan granted, which may also be acquired as part of the investments to be made, for a duration at least equal to that of the subsidised loan granted by ISMEA. For example, first mortgage guarantees on the subsidised assets, or on other assets of the beneficiary or of third parties, but also (in addition or as an alternative) bank or insurance guarantees on first demand are admissible.

Applications can be submitted electronically through the dedicated portal (https://strumenti.ismea.it/).