Agriculture loan

A crop farm was established in the Tauragė district in 2024, focusing on the cultivation of various grain crops, including wheat, oats, buckwheat, peas, and rapeseed. The farm applies crop rotation practices, grows cover crops, and part of the land is cultivated using no-till farming technology.

Although the farm itself was recently established, the farmer gained practical agricultural experience by working together with his grandfather, who managed a mixed farm for more than 30 years. Along with the farming operations, the farmer also inherited part of the land, older machinery, and essential farming infrastructure, allowing the business to start with an existing operational base rather than from scratch.

In 2025, the farm declared 36.26 hectares of agricultural land, while in 2026 the declared area increased to 54.36 hectares. This demonstrates consistent farm expansion and increasing operational capacity already during the early stage of development.

According to the 2025 financial results, the farm generated sales revenue of EUR 21,000 and a net profit of EUR 15,551. It is also important to highlight that during the first years of operation, the farmer significantly strengthened the farm’s asset base — total assets increased from EUR 16,300 to EUR 84,040, of which EUR 74,000 consists of owned land. The farm currently has no registered financial liabilities.

Considering the rapidly growing scale of operations and the significantly increased declared land area, the farm is expected to generate no less than EUR 50,000 in revenue during 2026. The projected increase in revenue is directly related to the expansion of cultivated land, growing production volumes, and the gradual development of the farming operation.

The tractors currently used on the farm are old and inefficient, therefore the farmer submitted an application to the National Paying Agency (NPA) for the acquisition of a new tractor. In March 2026, a decision was made to grant EUR 79,200 in support for the purchase of a new “Deutz Fahr 6160” tractor. The total acquisition value of the tractor amounts to EUR 137,940, therefore the farmer applied to InSoil for a EUR 42,000 loan to partially finance the project.

It is important to note that the difference between the NPA support amount and the total purchase price of the tractor will be covered using the farmer’s own funds. This demonstrates the farmer’s commitment to the project, a responsible approach toward financial obligations, and a long-term vision for the farm’s development.

The acquisition of the new tractor will allow the farm to perform cultivation work more efficiently, reduce fuel consumption, improve productivity, and support the continued expansion of the growing farming operation. Considering the rapidly increasing cultivated land area, this investment is viewed as strategically important for the farm’s future growth and operational stability.