Finance a project of farming in France : grants for young farmers and others

Grants for YF and others

In France,the State helps young people to become farmers through various financial, social and tax mechanisms,which “lighten” the load of taking over a farm.

These grants are allocated subject to a certain number of conditions (age, nationality, training, preliminary study…) and commitments on the part of the beneficiary (keeping of accounts choosing the VAT regime, etc.).

There are also grants to help people wishing to take over a farm and who do not meet the conditions for obtaining a Young Farmer’s grant.

In this way, financing of a farm can combine, self-financing, national public grants* and other types of finance.

* programmed by the State, these are aimed at Young Farmers as well as other applicants.

Self-financing

Whether personal or family, self-financing means recourse to bank loans remains limited.

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Other types of financing | loans with no reduced interest rate offered by the State

Candidates for taking over a farm can use bank finance on which interest rates are not reduced by the Statein order to complete their finance above authorised ceiling amounts. Any credit body can offer this type of finance and the rate can be set freely.

However, since January 1990, banks authorised to offer reduced rate loans have been offering Contractual Agricultural Loans (P.C.A).

State installation grants

For young farmers:

Young Farmers installation assistance

Grants and special installation loans

Fiscal and social assistance

Programme for installation outside the family circle by young farmers and the development of local initiatives (PIDIL)

Grants from Regional or General Councils

For all:

Grants for the modernisation and fitting out of farms:

The Investment Plan (P.I.)

Reduced interest rate loans

State grants after installation

The French Ministry of Agriculture orients productionparticularly by means of the financial support it grants to farmers.

This takes the form of special grants for:
- the construction, fitting out or renovation of buildings
- support for farmers in difficulty
- by the allocation of early retirements grants

The need for sustainable, environmentally friendly development in agriculture, has also resulted in grants being set up for farmers that include this aspect:

- Agro-Environmental Grassland Bonus (PHAE)

- Programme for Agricultural Pollution Control(PMPOA)

- Compensatory Allowance for Permanent Natural Handicaps (ICHN)