Žalioji paskola

About the farm 

The agricultural activity began in 1998. Currently, the declared land area is 501 hectares, of which 208 hectares are owned, with the remaining land rented from private individuals. The farm is managed together with the owner's father, who additionally owns 150 hectares of land.

It operates as a mixed farm, combining grain cultivation with dairy farming. Grain production follows no-till technology, crop rotation, and the use of cover crops. For the past 8–9 years, the farm has been using Bioenergy bacteria, which has reduced the need for granular mineral fertilizers by half. The use of fungicides is minimal, as the soil has been cleared of pathogens, and only biological seed treatment is applied. The farm is a member of the Pienas LT cooperative and purchases electricity from a solar farm.

Currently, the farm has 116 milking cows and 230 young stock. It is equipped with the latest technology, including a double milking robot, a feed-pushing robot, and an automated calf feeder.

The farm’s machinery fleet includes a self-propelled forage harvester, a tracked combine harvester, four tractors, a telescopic loader, articulated loaders, and other modern and advanced equipment.

The borrowed funds will be used to purchase an innovative hay rake for forage production, with a total cost of nearly €100,000 (including VAT).

Main Terms

The principal will be repaid by the farmer in regular instalments over the span of 5 years in accordance with the repayment schedule.

250 hectares of land are included in the Green Loan program. It is estimated that a total of 3035 carbon certificates will be generated in 6 years (based on a conservative estimation). Consequently, investors will receive below indicated portion of sales proceeds from every carbon certificate generated from the land of the project owner involved in the program;

(1) 60% of income received during the loan period;

(2) 40% of income received for the following year after the loan period.

It is expected that the first carbon certificates will be generated and sold in the second quarter of 2026. The exact return will depend on the amount of sequestered CO2 levels and the sale price of the carbon certificates.

If the project owner (farmer) withdraws from the Carbon Credits Agreement and does not intend to follow the agreement on the carbon revenue split with investors, the project owner will be obliged to repay the entire loan as well as pay the penalty, calculated by multiplying the interest rate by the entire loan amount and period equal to the duration of the loan agreement plus 12 (twelve) months.

Investors of this loan would receive a penalty of 92000 EUR * 9% * 6 year = 49680 EUR. This penalty can be reduced by the return earned by investors from the carbon credits generated

If the project fails to be delivered successfully through no fault of the farmer, the farmer commits to paying investors a minimum interest rate of EURIBOR 6M + 1.5%. This commitment applies in situations such as the lack of market demand for selling carbon credits, among others.

Annualized return forecast

Conservative scenario (€20 per carbon certificate): 14,13% IRR*

Today's scenario (€35 per carbon certificate): 22,39% IRR*

Optimistic scenario (€100 per carbon certificate): 49,85% IRR*

Read more about the return scenarios in the document section

*The internal rate of return (IRR) is a metric used in financial analysis to estimate the profitability of potential investments. 

Keep in mind that the return forecast is an estimation and does not guarantee you the returns mentioned above.