Agriculture - Government-backed loans: research
This commissioned report provides an understanding of how government-backed loans and private finance schemes have supported young and new entrants to enter agriculture in the UK & Europe.
Footnotes
1 CEJA (2019): Final-Young-Farmers-are-Key-in-the-Future-CAP-BW-1.pdf
2 Usually defined as 40 years old or younger
3 Scottish Government (2025): Results from the Scottish Agricultural Census: June 2025 - gov.scot
4 European Union (2022), Eurostat: Farmers and the agricultural labour force - statistics - Statistics Explained - Eurostat
5 Stark, S., Lorleberg, W., Pölling, B., Xiaohua, Y., Feil, J-H. (2025) Towards better tailored new entrant support in European agriculture: Analysing the differences between family successors and newcomers, Journal of Rural Studies, Vol. 119. Towards better tailored new entrant support in European agriculture: Analysing the differences between family successors and newcomers - ScienceDirect
6 Hopkins, J., Sutherland, L - A., Calo, A., Barlange, C., Wardell-Johnson, D., Barnes, A., Thomson, S., McMillan, J. & Spencer, M. New entrants: their potential contribution to farming in Scotland by 2023 Farmer Intentions Survey briefing note, March 2020: Research_Note_New_Entrants_final_RD242_published.pdf
7 Campi, M. et al. (2024) “The evolving profile of new entrants in agriculture and the role of digital technologies”, OECD Food, Agriculture and Fisheries Papers, No. 209, OECD Publishing, Paris, available at: The evolving profile of new entrants in agriculture and the role of digital technologies | OECD.
8 Strutt & Parker (2024) Scottish Farmland Market Review 2024, available at: https://rural.struttandparker.com/wp-content/uploads/2025/04/Scottish-Farmland-Market-Review-UK-Rural_1.5_mj.pdf
9 See Scottish Land Matching Service | Opportunities in Scottish Farming for more information
10 See Annex: Policy Implications - Starter farm initiative - tenant insights: review - gov.scot for more information
11 Scottish Government, Rural Payments and Services (2026), Crofting Agricultural Grant Scheme: Crofting Agricultural Grant Scheme
12 Scottish Government Crofting Agricultural Grants Scheme full guidance
13 EKOS Ltd (2024), a report for Scottish Government, Scottish Rural Development Programme 2014-2020: Evaluation of Capital Grant Schemes - Main Report: Scottish Rural Development Programme 2014-2020: Evaluation of Capital Grant Schemes – Main Report - gov.scot
14 Scottish Government (2022): New Entrants and Young Farmers Start-Up Grant Schemes: Evaluation
15 Scottish Government (2025) Programme for Government 2025 to 2026 1 Growing the Economy - Programme for Government 2025 to 2026 - gov.scot
16 More information about how government-backed loans work, relating to the Growth Guarantee Scheme, is detailed by the British Business Bank here: Growth Guarantee Scheme (GGS) | British Business Bank
17 The Welsh Government have announced in March 2026 the launch of a Sustainable Agriculture Loan Scheme, with loans between £25,000 and £1 million available at a fixed interest rate of 3% and a term of up to15 years. The loan scheme aims to facilitate investment in sustainability and productivity among small and medium-sized farms, see Welsh Farmers to Access Low-Interest Green Loans | GOV.WALES for further information.
18 Agricultural Credits Act 1928, Chapter 43 (18 and 19 Geo 5), Part II, s. 5, available at: Agricultural Credits Act 1928
19 Section 64 of the Agricultural Act 1967, paragraph 2: Agriculture Act 1967
20 House of Commons (1984) Agriculture (Amendment) Bill, Hansard, vol. 57, 30 March, column 590: Agriculture (Amendment) Bill - Hansard - UK Parliament
21 Scottish Enterprise (n.d.) Scottish Loan Scheme: Scottish Loan Scheme | Scottish Enterprise
22 British Business Bank (2026) Start Up Loans: Start Up Company - British Business Bank
23 Cowling, M. & Dvouletý, O. (2022) ‘UK government-backed start-up loans: Tackling disadvantage and credit rationing of new entrepreneurs’ International Small Business Journal Researching Entrepreneurship Vol 41(7) pp.1 -20. DOI: 10.1177/02662426221124733 (PDF) UK government-backed start-up loans: Tackling disadvantage and credit rationing of new entrepreneurs
24 Scottish EDGE CIC (n.d.) Scottish EDGE Have you got the EDGE? Scottish EDGE | Scottish EDGE Competition
25 European Investment Bank (n.d.) Agricultural and the bioeconomy, available at: Agriculture and the bioeconomy
26 European Investment Bank (2024) €3 billion of EIB Group financing announced for farmers and bioeconomy, available at: €3 billion of EIB Group financing announced for farmers and bioeconomy
27 British Business Bank (2026) ENABLE Programmes, available at: ENABLE programme - British Business Bank
28 EIB (2026) Partners for private and public sector, available at: Partners for private and public sector
29 British Business Bank (2024) British Business Bank doubles existing ENABLE Guarantee transaction with Oxbury Bank to £200m, including innovative new green finance structure, available at: Press release - 5 July, 2024 | British Business Bank
30 EIB (2019) Supporting farmers in Europe: 95% of €1 billion programme loan committed within six months, available at: Supporting farmers in Europe: 95% of €1 billion programme loan committed within six months
31 Fi-Compass (2019) Joint Initiative for improving access to funding for European Union Young Farmers: Joint Initiative for improving access to funding for European Union Young Farmers
32 European Commission (2025) Communication from the Commission to the European Parliament, The Council, The European Economic and Social Committee and the Committee of the Regions Strategy for generational renewal in agriculture, COM/2025/872 final, CELEX 52025DC0872: EUR-Lex - 52025DC0872 - EN - EUR-Lex
33 European Commission (2025) Communication from the Commission to the European Parliament, The Council, The European Economic and Social Committee and the Committee of the Regions Strategy for generational renewal in agriculture, COM/2025/872 final, CELEX 52025DC0872: EUR-Lex - 52025DC0872 - EN - EUR-Lex
34 European Investment Bank Group (n.d.): How can we help young farmers?: How can the EIB help young farmers?
35 European Commission (n.d.) Young farmers Strategy to promote generational renewal: Young farmers - Agriculture and rural development - European Commission
36 European Union (2021) Regulation (EU) 2021/2115 of the European Parliament and of the Council of 2 December 2021 establishing rules on support for strategic plans to be drawn up by Member States under the common agricultural policy (CAP Strategic Plans). EUR-Lex - 02021R2115-20240101 - EN - EUR-Lex EUR-Lex - 52025DC0872 - EN - EUR-Lex
37 Teagasc (2025): One in three farmers are over 65 - Teagasc | Agriculture and Food Development Authority
38 Government of Ireland (2025) Fifth_Amendment_to_Irelands_CAP_Strategic_Plan_2023-2027_080525.pdf p235
39 The Collaborate Farming Grant Scheme funds up to 50% of the legal, advisory and financial services costs (up to €1,500) of establishing Registered Farm Partnerships. Objectives of the scheme include promoting best practices via consolidating land holdings where partners are unrelated, to improve economies of scale. Partnerships require to include one or more partners under the age of 40 with prioritisation for those also including a partner over the age of 60, see CAP Network Ireland, Collaborative Farming Grant - CAP Network Ireland
40 Government of Ireland, Department of Agriculture, Food and the Marine (2026) Targeted Agricultural Modernisation Scheme 3 (TAMS 3) Young Farmers’ Capital Investment Scheme Terms and Conditions: TAMS_3_YFCIS_Terms_and_Conditions_7_March_2026.pdf
41 Government of Ireland (2019) Government supports for SME Credit: Government supports for SME Credit
42 Government of Ireland (2025) CAP Strategic Plan, available at: Fifth_Amendment_to_Irelands_CAP_Strategic_Plan_2023-2027_080525.pdf
43 Mid-caps are defined based on employee numbers: Less than 500 employees, with a detailed explanation included here from the European Investment Fund: innovfin-sme-guarantee-frequently-asked-questions.pdf
44 Government of Ireland (2024) Future Growth Loan Scheme Information Pack: Future Growth Loan Scheme Information Pack
45 Government of Ireland (n.d.): future-growth-loan-scheme-information-pack.pdf
46 An uncapped counter guarantee means that if a first guarantor incurs losses, a second guarantor will cover these losses without an upper limit
47 EIF (n.d.): (EIF in Ireland - EIF in my country
48 Fi-compass (ERDF SBCI GSLS case study_RTW.pdf
49 SQW (2022) The Future Growth Loan Scheme review-of-the-future-growth-loan-scheme.pdf
50 Office of the Comptroller and Auditor General (2023) Appropriation Account 2023, Vote 32 Enterprise, Trade and Employment Vote 32 - Enterprise, Trade and Employment
51 Government of Ireland (n.d.): Growth and Sustainability Loan Scheme - DETE
52 Fi-compass (2024) Growth & Sustainability Loan Scheme in Ireland, available at: ERDF SBCI GSLS case study_RTW.pdf
53 Strategic Banking Corporation of Ireland (2025) Quarterly Report of the Growth & Sustainability Loan Scheme as at 30th September 2025, available at: Quarterly Report of the Growth and Sustainability Loan Scheme as at 30 September 2025
54 EIF (2026): INAF - Initiative Nationale pour l’Agriculture Française | Access to finance
55 Ministry of Agriculture, Agri-Food and Food Sovereignty (2025) Ministry and European Investment Fund support agricultural investment with €2 billion | Ministry of Agriculture, Agri-Food and Food Sovereignty
56 Boulesteix, V. (2021) The French National Agricultural Initiative (INAF) Public guarantee scheme for bank loans to facilitate their granting to french farmers, available at: L'initiative nationale pour l'agriculture française (INAF) Système public de garantie des prêts bancaires pour faciliter leur octroi aux agriculteurs français
57 Credit Agricole Societal Project 2022-2024 Review, available at: 206882
Helping hand Zero-Interest Loan for Agri-Viti installation - Crédit Agricole
59 ISMEA (2024) Generation Earth - the new ISMEA land interventions dedicated to young people - Ismea
60 Translation of the original Italian text into English was assisted by ChatGPT (OpenAI), large language model.
61 SAECA (n.d.) ICO-MAPA-SAECA YOUTH LINE:LÍNEA ICO-MAPA-SAECA JÓVENES - Saeca
62 Translation of the original Lithuanian text into English was assisted by ChatGPT (OpenAI), large language model.
63 The Minister of Agriculture of the Republic of Lithuania (2023) Order on the Approval of the Rules for the Implementation of the Intervention Measure “Establishment of Young Farmers” of the Lithuanian Strategic Plan for Agriculture and Rural Development for 2023-2027, available at:
64 €100,000 is the maximum cap of total aid for setting up young farmers and the start-up of rural businesses set out in Regulation (EU) 2021/2115, available at: EUR-Lex - 02021R2115-20240525 - EN - EUR-Lex
65 Ministry of Finance (2023) 2.6 Overview of risk schemes, available at: Ministerie van Financiën - Rijksoverheid
66 Government of the Netherlands (2022) Interim evaluation of the guarantee scheme for a capital strengthening credit (BL-VVK), available at: Interim evaluation of the guarantee scheme for a capital strengthening credit (BL-VVK) | Report | Rijksoverheid.nl
67 Translation of the original Dutch text into English was assisted by ChatGPT (OpenAI), large language model.
68 Parliamentary piece dated 03/04/24: Kamerbrief jonge landbouwers in het GLB-NSP en evaluatie VVK | Kamerstuk | Rijksoverheid.nl
69 In order to facilitate over 90% loan-to-value mortgages, the UK Government introduced the 2025 Mortgage Guarantee Scheme to provide participating lenders with a government-backed guarantee, should the borrower default. See 2025 Mortgage Guarantee Scheme - GOV.UK for more information.
70 Scottish Government (2024): Supporting and enabling sustainable communities: An Action Plan to Address Depopulation
71 European Commission (2025) Communication from the Commission to the European Parliament, The Council, The European Economic and Social Committee and the Committee of the Regions Strategy for generational renewal in agriculture, COM/2025/872 final, CELEX 52025DC0872: EUR-Lex - 52025DC0872 - EN - EUR-Lex
72 Clark, S., Newing, A., Hood, N. & Birkin, M. (2023) Retail banking closures in the United Kingdom. Are neighbourhood characteristics associated with retail bank branch closures? Transactions of the Institute of British Geographers, Vol. 49 (3) Transactions of the Institute of British Geographers - Wiley Online Library
73 Government of Ireland (2025) CAP Strategic Plan, available at: Fifth_Amendment_to_Irelands_CAP_Strategic_Plan_2023-2027_080525.pdf
74 Noting that the uptake rates for the sector covered a different number of years for each loan scheme, so are therefore not directly comparable.
75 The Scottish National Investment Bank (2026) A development investment Bank for a better Scotland | Scottish National Investment Bank
76 Fi-compass (2024) Case Study November 2024: Growth and Sustainability Loan Scheme in Ireland: ERDF SBCI GSLS case study_RTW.pdf
77 Ministry of Agriculture, Agri-Food and Sovereignty (2024) News release: The Ministry and the European Investmenrt Fund are increasing their support for agricultural investment to the tune of €2 billion:
78 Ministry of Agriculture, Agri-Food and Food Sovereignty The National Initiative for French Agriculture: supporting the transformation of the agricultural model by facilitating farmers' access to bank financing, available at: Everything you need to know about the National Initiative for French Agriculture (INAF) | Ministry of Agriculture, Agri-Food and Food Sovereignty
79 McKee, A., Sutherland, L-A., Hopkins, J., Flanigan, S. & Rickett, A. (2018) Increasing the Availability of Farmland for New Entrants to Agriculture in Scotland Final report to the Scottish Land Commission: 5dd6a2d2ac866_McKee-et-al.-Final-report-to-SLC-Increasing-land-availability-for-new-entrants-2.5.2018.pdf
80 Scottish Government (2022): New Entrants and Young Farmers Start-Up Grant Schemes: Evaluation
81 Cowling, M. (2010) Economic Evaluation of the Small Firms Loan Guarantee (SFLG) Scheme, Institute for Employment Studies: Economic Evaluation of the Small Firms Loan Guarantee (SFLG) Scheme - Institute for Employment Studies (IES)
82 Smith, L. & Keter, V. (2008) Small Firms Loan Guarantee Scheme, available at: SN00827.pdf
83 House of Commons Public Accounts Committee (2004) Minutes of Evidence: Examination of Witnesses (Questions 40-59) 13 October, Session 2004-5: House of Commons - Public Accounts - Minutes of Evidence
84 British Business Bank (2019) Enterprise Finance Guarantee: An Opportunity for Lending Institutions to Partner with the British Business Bank: EFG Request for Proposal Final
85 Department for Business, Innovation and Skills (n.d.) Enterprise Finance Guarantee (EFG) Business Sectors and Purposes, UK Government: Enterprise Finance Guarantee (EFG) Business Sectors and Purposes
86 British Business Bank (n.d.) Enterprise Finance Guarantee, available at: Enterprise Finance Guarantee | British Business Bank
87 Department for Business, Innovation and Skills, UK Government (2014) Guidance, Understanding the Enterprise Finance Guarantee: [Withdrawn] Understanding the Enterprise Finance Guarantee - GOV.UK
88 British Business Bank (2017) Enterprise Finance Guarantee Quarterly Statistics for Q3 FY 2019-20, available at: Enterprise Finance Guarantee Quarterly Statisitcs for Q3 FY 2019-20
89 British Business Bank (2025): RLS (iterations 1 & 2) Performance Data as at 30 June 2025 | British Business Bank
90 Department for Business and Trade, HM Treasury and Department for Business, Energy & Industrial Strategy (2022) Recovery Loan Scheme available at: Recovery Loan Scheme - GOV.UK
91 British Business Bank (n.d.) Recovery Loan Scheme, available at: Recovery Loan Scheme | British Business Bank
92 Growth Guarantee Scheme (n.d.) Growth Guarantee Scheme (GGS) | British Business Bank
93 British Business Bank (n.d.) Growth Guarantee Scheme – FAQs, available at: Growth Guarantee Scheme FAQs | British Business Bank
94 British Business Bank (2026) Current accredited lenders, available at: Growth Guarantee Scheme Current accredited lenders | British Business Bank
95 British Business Bank (2025), GGS(including RLS iteration 3) Performance Data (31 Dec 24): GGS (including RLS iteration 3) Performance Data (31 Dec 24) | British Business Bank
96 Government of Ireland (2019) Government supports for SME Credit: Government supports for SME Credit
97 Government of Ireland (n.d.) Future Growth Loan Scheme Information Pack, available at: future-growth-loan-scheme-information-pack.pdf
98 Office of the Comptroller and Auditor General (2023) Appropriation Account 2023, Vote 32 Enterprise, Trade and Employment Vote 32 - Enterprise, Trade and Employment
99 Strategic Banking Corporation of Ireland (2025) Quarterly Report of the Growth & Sustainability Loan Scheme as at 30th September 2025, available at: Quarterly Report of the Growth and Sustainability Loan Scheme as at 30 September 2025
100 Fi-compass (2024) Growth & Sustainability Loan Scheme in Ireland, available at: ERDF SBCI GSLS case study_RTW.pdf
101 Boulesteix, V. (2021) The French National Agricultural Initiative (INAF) Public guarantee scheme for bank loans to facilitate their granting to french farmers, available at: L'initiative nationale pour l'agriculture française (INAF) Système public de garantie des prêts bancaires pour faciliter leur octroi aux agriculteurs français
102 SAECA (n.d.) ICO-MAPA-SAECA YOUTH LINE: LÍNEA ICO-MAPA-SAECA JÓVENES - Saeca
103 Spanish Ministry of Agriculture, Fisheries and Food (2025) Last year, SAECA guaranteed credit operations for farmers and livestock producers totalling €314 million. Available at: Ministerio de Agricultura, Pesca y Alimentación
104 The Minister of Agriculture of the Republic of Lithuania (2023) Order on the Approval of the Rules for the Implementation of the Intervention Measure “Establishment of Young Farmers” of the Lithuanian Strategic Plan for Agriculture and Rural Development for 2023-2027, available at:
105 Government of the Netherlands (2022) Interim evaluation of the guarantee scheme for a capital strengthening credit (BL-VVK), available at: Interim evaluation of the guarantee scheme for a capital strengthening credit (BL-VVK) | Report | Rijksoverheid.nl
106 Translation of the original Dutch text into English was assisted by ChatGPT (OpenAI), large language model.
Contact
Email: rebecca.cairns@gov.scot