French National Agriculture Initiative enters operational phase

Minister for Agriculture and Food Didier Guillaume, Vice-President of the European Investment Bank Group Ambroise Fayolle and Chief Executive of the European Investment Fund Pier Luigi Gilibert today signed an agreement with the representatives of Arkéa, BPCE Group, Crédit Agricole and Crédit Mutuel to roll out the French National Agriculture Initiative (INAF).

INAF was created in connection with the French Government’s Investment Plan 2018-2022 by the European Investment Fund (EIF), a subsidiary of the EIB Group, in association with the Government and its Ministry of Agriculture. INAF mobilises EUR 60m of national funds and EUR 45m of European Fund for Strategic Investments (EFSI or Juncker Plan) resources.

INAF has very substantial leverage and is expected to unlock over EUR 1bn of investment via the four financial intermediaries selected.

Specifically, the initiative aims to support upscaling, the creation of value added and the transformation of production systems. With this in mind, the initiative aims to better meet the expectations of consumers by expanding the development of high-quality sectors and promoting a regional focus with local networks. Furthermore, INAF focuses on generation renewal and the introduction of market entrants, transformation of agricultural models for improved economic, social, environmental and health performance, diversification of farming activities and revenues, and upgrading of assets that are no longer in line with international best practice.

This innovative instrument will enable banks to expand their business by offering them a guarantee tool that can best support the dynamic of farm transformation. It covers a portion of any losses incurred in the future by a portfolio of new loans granted by Arkéa, BPCE Group, Crédit Agricole and Crédit Mutuel in order to have a real impact on the market and offer farmers loans on very favourable terms over the next five years.

“This initiative, requested by the French President as part of the French Government’s Investment Plan, mobilises national funds and resources from the European Fund for Strategic Investments. The initiative will act as a catalyst for investment by French farmers, in particular to support our ambitions in terms of the transition to agro-ecology and to help young farmers set up”, said Didier Guillaume.

According to Ambroise Fayolle: “The agreement signed today symbolises the cooperation between the French Government and the EIB Group (EIB is the EU bank) to mobilise resources from both the private and public sectors in support of farmers.”

Pier Luigi Gilibert stated: “INAF sends a powerful signal from the European Union and its institutions to build a strong agricultural sector in Europe as demonstrated today by the French regions, networks and farmers.”

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