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About the farm

The farmer has been running the farm since 2000, when he founded it himself, and has since expanded his farm to 127 hectares, of which he owns all of it. On the farm he is engaged in crop production. He works independently on the farm. His sowing structure consists of 8ha of beets, 85ha of corn, 33ha of oats and 1ha of potatoes.

On the farm he uses machinery such as:

• tractor JOHN DEERE 2011 r.
• tractor JOHN DEERE 2008 r.
• spreader SIDOMAC 2016 r.
• loader JCB 2011 r.
• corn cutter attachment FANTINI 2012 r.

In the next 3 years, the farmer will engage in vegetable farming. On about 7ha he wants to start growing carrots, parsley and onions. In addition, he plans to renovate the buildings where he stores machinery. 

The loan is to be used for building renovations and investments related to the development of vegetable cultivation.

Main Terms

The principal will be repaid by the farmer in regular instalments over the span of 4 years in accordance with the repayment schedule. 100 hectares of land are included in the Green Loan program. It is estimated that a total of 1012 carbon certificates will be generated in 5 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 38433 EUR * 12% * 5 year = 23059,8 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): 15,86% IRR* Today's scenario (€35 per carbon certificate): 25,16% IRR* Optimistic scenario (€100 per carbon certificate): 55,81% 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.