Agriculture loan

Agriculture loans are tailored to acquire capital for various purposes such as expansion, inventory purchase, equipment acquisition, hiring staff, or to manage day-to-day operational expenses. The terms and conditions of these loans vary depending borrower's creditworthiness, collateral, repayment tenure and other factors.

PL0001364

Goal
10,000 €
Raised
10,000 €
100%
Return rate
14.5%
Rating
B+
Period
12
Time left
LTV
-
Country
Poland
Loan purpose
Working capital
Business information
Security measures
Loan history
Project owner Address
Xxxxx Xxxłxxxxx
Xxxxxxx 16, 19-314 Xxxxxxxx
header_1 Declared Owned
Farming land120.00 ha80.00 ha
20222021
Revenue 346,081.00 € 222,222.00 €
Net profit - -
Equity ratio - -
Project description
Documents
Payment schedule
The project owner has been farming for 20 years, however, the farm itself was inherited from his parents 10 years ago. 
The farm is currently involved in milk production. According to the breeders' association evaluation, the herd consists of 108 cows, of which 70 are high milking (HF) cows. with 38 heifers. The cows are mainly grazed in spring and summer.

The crop structure is subordinated to the production of cattle feed, the farmer only buys vitamins and rape seeds.
Crop structure:
  • maize - 50 ha 
  • wheat - 30 ha
  • alfalfa - 20 ha
  • grass - 20 ha

Tractors used on the farm:

  • Zetor Proxima Power 100 with loader (2011)
  • John Deere 6195 (2016)
  • Kubota M108S (2020)
Mr Pawłowski also used EU funding to purchase some machinery. Any farmer can apply for a farm modernisation application where he can receive 50% compensation for the purchase of machinery. After a further 5 years, he can apply for another such funding.
In order to obtain such funding, the farmer must undergo an audit from time to time to check if the funds are being used appropriately.

Machinery purchased with European Union funding:

  • Joskin tanker (2020)
  • Agromechanica sprayer (2021)
  • Tatoma forage wagon (2012)
  • Samasz mower (2012)
  • Samasz rake (2012)

The farmer ploughs, but is in the process of converting to no-till by using such machinery as:

  • Kverneland maize drill (2020)
  • Amazone cereal drill (2015)
  • Pottinger 5 skid plough (2021)
  • disc machine 
  • cultivator

The farmer is selling milk to the Mlekpol dairy cooperative for many years now.

The farmer plans to build a biogas plant in the next few years and increase his herd to 150 cows.
Once the farmer has increased the area cultivated without ploughing, he will participate in Heavy Finance's carbon farming project. His goal is to become more sustainable.

This is the second loan on the HeavyFinance platform, with the aim to increase farm's working capital.

Project risks

For this project, there is a risk of losing all the profits made and the funds invested.

In this case, if the Project Owner fails to fulfill its obligations, the Platform Operator will take all necessary measures to protect the interests of investors and use the provided collateral, but the Platform Operator does not guarantee the full fulfillment of the Project Owner's obligations.

Financial agreements are not subject to the insurance protection established by the Law on Insurance of Deposits and Liabilities to Investors of the Republic of Lithuania.

Additional information:

If the project owner does not collect the amounts to be financed, the collected funds will be returned to the funders by transferring them to the account from which they were transferred. The Platform Operator also has the right to offer the Project Owner to reduce the amount to be financed during the Project financing term or to extend the Project financing term. In this case, if the amount to be financed is reduced or the term of financing the Project is extended, it shall in all cases be announced on the Platform and the Fund's financiers shall be informed.