An agricultural-focused EAFRD financial instrument providing market-responsive financial products

Summary:

EU farmers face economic challenges during times of price volatility, such as unexpected changes in market conditions creating uncertainty, which increases the risks both for farmers seeking finance and for financial institutions providing such finance. These circumstances may lead to sub-optimal investment decisions in agriculture, which suggests that EAFRD support through financial instruments for new flexi products could help. For this reason, DG AGRI and the European Investment Bank in the context of fi-compass, initiated a study to investigate the feasibility, possible value added and scope of flexible financial instruments responsive to market fluctuations, to address sub-optimal investment conditions and contribute to rural development policy implementation.

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