An agricultural development loan is a particularly risky loan type appropriate for younger farmers, whose ambition is to overtake and develop an existing farm. The loan can cover any outstanding financing needs.
An agricultural development loan is subordinate to other loans and is irredeemable by Vaekstfonden. The loan is a subordinated loan and serves to strengthen the borrower’s creditworthiness in the eyes of the bank, other creditors and the outside world.
The development loan covers 15 pct. of the entire purchase or investment sum, not withstanding other financing. In some cases, the development loan may be available to finance up to 20 pct. of the purchase or investment sum.
The development loan is based on a collaboration with Finance Denmark and The Danish Agriculture and Food Council.