About the farm
The farmer has been running the farm since 1982.05.01, he took over 7 ha from his parents. He has currently expanded the farm to 250 ha, including 58 ha of lease.
He is involved in crop production, milk production and cattle breeding on the farm. The farm is run by a family and also employs one worker.
He currently has 200 milking cows, 20 young calves and 40 adult heifers and 5 bulls.
The farmer runs a sowing structure of 67 ha of corn, 19 ha of alfalfa, 21 ha of oats, 14 ha of winter barley, 129 ha of grass.
The farm uses the following machines:
-Talerzowka 6m Unia 2018
-grubber Unia 2022
-tractor New Holland tm 2006
-tractor Massey ferguson 2019
-tractor Massey ferguson 2020
-tractor New Holland 2011
-Corn harvester class 2005
-Loader JCB 2019
In the next 5 years, the farmer intends to increase milk production, increase the herd of dairy cows to 250. He plans to buy land and lease it to expand the farm to 300 ha. The plan is to buy a new tractor Massey ferguson or New Holland.
The money from the loan is to be used for current operations.
Main Terms
The principal will be repaid by the farmer in regular instalments over the span of 3 years in accordance with the repayment schedule.
117 hectares of land are included in the Green Loan program. It is estimated that a total of 947 carbon certificates will be generated in 4 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 50000 EUR * 12,5% * 4 year = 25000 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): 15,28% IRR*
Today's scenario (€35 per carbon certificate): 24,38% IRR*
Optimistic scenario (€100 per carbon certificate): 54,49% 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. Learn more about it
Keep in mind that the return forecast is an estimation and does not guarantee you the returns mentioned above.
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-3,743,906 kg CO2e
PL0002641
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