The European Investment Fund (EIF) has backed a €50m (£42.69m) credit fund from HeavyFinance to support small- and medium-sized agricultural businesses across Europe.
The EIF has committed €20m to the private credit fund, supported by InvestEU – a programme designed to mobilise at least €372bn for European policy priorities by 2027.
HeavyFinance said that the new fund will support on-farm decarbonisation and greener farming practices in five European countries – Bulgaria, Latvia, Lithuania, Poland and Portugal.
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“Farmers are facing unprecedented challenges due to climate change, but they are also at the forefront of finding innovative nature-based solutions,” said HeavyFinance’s chief executive and founder Laimonas Noreika.
“This fund represents a crucial step in HeavyFinance’s commitment to eliminating one gigaton of carbon dioxide from the atmosphere by 2050.”
The fund will provide mid-term debt capital for small and medium-sized agricultural companies to support them in their efforts to reduce their carbon footprint. This might include the introduction of no-till farming, improving soil health, and using fewer synthetic fertilisers.
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“HeavyFinance is empowering European farmers to cultivate a more sustainable future,” said the EIF’s chief executive Marjut Falkstedt.
“With the support of the EIF and InvestEU, we are nurturing the growth of regenerative agriculture, contributing to decarbonisation, unlocking the potential of our land and fostering a more resilient planet.”
Since it was established in 2020, HeavyFinance has taken more than 10,000 soil samples to help measure carbon storage on farmland. The peer-to-peer lender has already enabled more than €50m in agricultural loans to 1,700 farmers to help them promote sustainable practices, modernise equipment and increase working capital in agriculture.
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