Agricultural loan

What an agricultural loan is

Agricultural lending differs from every other kind for a practical reason: the income does not arrive every month. A grower pays for seed, fertiliser, fuel and labour months before selling anything, and the income comes in over a few weeks a year. The products aimed at the sector are designed around this, with repayments that follow the harvest instead of a fixed monthly instalment. In practice there are three categories. Cultivation loans, which cover one season’s costs and are repaid from its produce. Investment loans, for tractors, machinery, greenhouses, cold stores or irrigation. And financing linked to subsidised programmes, such as improvement plans or support for young farmers, which have their own criteria and their own submission deadlines.

Which documents you need

Beyond the usual financial and tax records, an agricultural file has its own documents. The ΟΣΔΕ (OSDE) declaration — the single application for agricultural aid — is the most important: it records what you grow, on how many stremmata and where, and it gives the lender a picture of the size of the farm. You also need the certificate of registration in the Register of Farmers, the details of the plots, whether owned with title deeds or leased with the agreements, and the records of the aid you receive. If the request is for equipment, quotations or invoices for that machine are added. If it is part of a programme, the approval decision or the application to join it is needed. The role of the agronomist or adviser who follows the farm is essential here, because most of these documents already pass through their hands.

How long the process takes

Time in agricultural lending is measured not only in weeks but in seasons, and that is the most important difference from every other category. A cultivation loan that arrives after sowing has missed its purpose, however quickly it was approved. The stages are gathering the farm’s records, assessing its size and productive capacity, checking any security, and the decision. When a subsidised programme is involved, the managing body’s time is added and cannot be compressed. The practical conclusion is simple: the move starts from the crop calendar, not when the need appears. Someone who starts the conversation months before they need the money has far more options than someone who starts the week before.

How subsidies count in the assessment

Agricultural aid is not simply income. For the lender it is a flow that comes from an official body at known times, and that predictability counts in your favour in an activity where the rest of the income depends on prices and weather. That is why the records of the aid you receive are asked for, and why the OSDE declaration plays such a central role. In some cases the aid can be linked to repayment, so that part of it goes towards the loan. But be careful on two points. Aid changes from one programming period to the next and is not guaranteed for the whole term of a long loan. And a loan that rests mainly on aid, rather than on production, is more exposed to every change in the rules.

How we help

We understand what your farm needs and when it needs it — in agriculture, timing decides a great deal. We tell you clearly whether the moment is right for that purpose; if it is early or late, you will hear it from us. Then we put you in touch with lenders who genuinely work with the agricultural sector and understand why income arrives all at once. We are neither a bank nor agronomic advisers: we do not grant loans, we do not approve requests, we do not draw up OSDE declarations and we do not submit files to programmes. The first contact costs nothing and does not commit you, and how we are paid is disclosed to you before anything is agreed.

What happens if the request is refused

Reasons for refusal in agriculture are usually specific and can be dealt with. The size of the farm, as shown by the OSDE declaration, does not support the amount requested, so a smaller amount or a different repayment structure is discussed. The plots are mostly leased on short agreements, which give the lender less security than ownership. There is already borrowing from a previous season that has not been put in order. Or the farm’s records are not up to date and the picture they give is older than the reality. That last one is easier to correct than most people imagine. Ask for the reason for the refusal in writing and go through it with your adviser before the next move. Often what is needed is not another lender but an updated record or a longer lease, and these can be put in order before the next growing season.

Documents at a glance

1. ΟΣΔΕ (OSDE) declaration for the current or the last season
2. Certificate of registration in the Register of Farmers and Agricultural Holdings
3. Title deeds or lease agreements for the plots
4. Tax returns and assessment notices for recent years
5. Records of agricultural aid received
6. Quotations or invoices for the equipment, where the request is for investment

Additional services: save time

A loan takes paperwork, deadlines and patience. If you would rather not go from office to office yourself, we handle it, as an accounting firm:

• Gathering and organising documents
• Tiresias and debt settlement

Fee: €100 for individuals and sole traders, excluding VAT. For companies, by quotation. They are optional and separate from the loan: you choose them, if you want, at the last step of the form. All the details.

Frequently asked questions

Is an OSDE declaration essential?

In most cases yes, because it is the document that shows what you grow and on how much land. Without it the lender has no objective picture of the size of the farm and finds it hard to assess the request.

Can I borrow if the fields are leased?

Yes, but ownership gives more security than a lease. What matters is how long the agreements run: long leases are viewed better than yearly ones, especially when the request is for an investment that takes a long time to pay back.

When should I start the process?

Earlier than you think. A cultivation loan approved after sowing does not serve its purpose. Start from the crop calendar, not when the need becomes pressing.

Can it be combined with a subsidised programme?

In many cases yes, and it is common for part of an investment to be covered by a programme and the rest by borrowing. The deadlines must be coordinated, though, because the programmes’ bodies have their own timetables.

How is a cultivation loan repaid?

Usually not with a fixed monthly instalment but with a schedule adapted to the harvest, so that repayment falls when you are paid. The exact structure differs by lender and by crop.

Where to check

• Ministry of Rural Development and Food — The authority responsible for the single aid application (OSDE) and the support programmes.
• AADE (Independent Authority for Public Revenue) — Issues the tax clearance certificate and the tax records the file asks for.
• Tiresias — Keeps the credit records and gives you a copy of your own data.