Lithuania adds €15 million in concessional loans as farmers face financial pressure

Lithuania has allocated an additional €15 million to concessional loans for agricultural and aquaculture businesses, while easing borrowing conditions for farms affected by adverse weather and difficult market conditions.

The changes took effect on 19 October and increase the total funding available under the scheme to €65 million. The Ministry of Agriculture said the previously allocated €40 million had already been exhausted, reflecting strong demand for financing.

The maximum combined loan exposure per recipient has been raised from €250,000 to €300,000, subject to an additional limit of 50% of average annual sales over the previous two financial years, including subsidies and grants.

The programme also broadens access for farms damaged by extreme weather, even where no official emergency has been declared. Loans for purchasing and planting fruit trees can now have repayment periods of up to 48 months, reflecting the longer recovery needs of commercial orchards.

Agriculture Minister Kęstutis Mažeika said farmers continued to face working capital shortages and needed additional financing to maintain their operations.

The scheme provides repayable loans rather than grants. It also covers eligible agricultural and aquaculture businesses that have difficulty obtaining conventional commercial financing.