Latvian farmers to get financing boost of over €10 million with EIF guarantee for lender LANDE

• Latvian farmers will be eligible for more than €10 million in much-needed alternative and flexible financing as a result of European Investment Fund (EIF) backing for agricultural lending platform LANDE.
• The EIF is providing a guarantee to support a loan portfolio of up to €10.4 million by LANDE, a Latvia-based specialist in farm lending. 

Many Latvian farms face a liquidity squeeze. The summer of 2025 proved exceptionally challenging for the sector with unpredictable weather and prolonged rains causing significant yield losses across Latvia, especially the regions of Latgale and Vidzeme. Insurance often proved insufficient to cover losses suffered by farmers, highlighting their pressing need for additional funding to maintain operations and pursue development plans.

The EIF guarantee for LANDE will cover up to 80% of the credit risk on loans of as much as €50,000, making them available without the need for hard collateral. It enables LANDE to reduce interest rates and expand its client base, including small farms that previously were unable to access financing without collateral or other security.

“Our aim is to bridge the gap between the needs of small farmers and the financing options available in regional markets,” said EIF Chief Executive Marjut Falkstedt. “We are confident this collaboration will generate the type of financing that is needed to ensure a very real and tangible impact.”

Climate change and market volatility require a re-evaluation of traditional financing practices in the agricultural industry. The EIF agreement with LANDE represents a strategic advancement in delivering flexible and accessible financing for farmers both in times of crisis and for long-term growth.

LANDE’s founder and CEO, Ņikita Gončars, emphasised that the company’s mission is to strengthen the accessibility of agricultural finance across Europe by offering modern and tailored loan solutions to farms:

“This season has shown how vulnerable the agricultural sector can be, particularly small and medium-sized farms that lack access to traditional bank financing. The EIF guarantee is a vital complement to existing national and EU support instruments, enabling us to reach an even broader range of farms. It allows us to respond swiftly and extend support to entrepreneurial farmers who are the backbone of rural economies across the region.”

The agreement is covered by the European Union’s InvestEU programme, which supports sustainable investments, innovation and economic and social cohesion. The accord is the first between the EIF and LANDE.

Background information

About the EIB

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. The EIB supports projects that make a significant impact on economic growth, innovation, and job creation. It is also one of the largest providers of climate finance, supporting projects that contribute to environmental sustainability and the fight against climate change.

About the EIF

The EIF is part of the European Investment Bank (EIB) Group and its central mission is to help Europe's micro businesses and SMEs access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, the EIF advances EU goals in the areas of innovation, research and development, entrepreneurship, economic growth and employment.

About InvestEU

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Press contacts:

EIB

Kristiina Randmaa, M. +352 4379 72894, e-mail:  k.randmaa@ext.eib.org

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