We're starting 2025 with an insightful interview with Haralds Neimanis, the Country Manager of LANDE Latvia, where he talks about his professional background, his journey at LANDE, and his role in shaping the company’s operations in its home market. Haralds shares his approach to navigating challenges in the agricultural sector, adapting loan strategies to market conditions, and ensuring strong results for both farmers and investors. This conversation highlights the unique dynamics of the Latvian market and LANDE’s commitment to supporting sustainable agricultural growth.

Keep an eye on our page as we'll continue the interview series with the country managers of Romania and Lithuania, as well as other members of the team!

Can you tell us a bit about your professional background? How and when did you join LANDE? 

I joined LANDE nearly five years ago, right at the company’s inception. Before that, I worked at another lending company, where I gained valuable experience in finance and client relations. At LANDE, I was part of the journey from the very beginning, contributing to the development of our lending products, assembling the Latvian team, and establishing partnerships with some of the largest agro-industry companies in the country. I also played a key role in promoting the LANDE brand and helping to position it as a trusted name in the agricultural sector. On the academic side, I hold a Bachelor’s Degree in Business Psychology.  

One little-known fact is that I used to be a professional hockey player before transitioning into the world of business and finance. 

Tell us more about your role as Country Manager of LANDE Latvia.  

It’s a fantastic role, all thanks to the incredible team we’ve built. My day-to-day varies based on the season, much like farming itself. We align our operations with the seasonal needs of our clients, ensuring we’re always in sync with their priorities. 

As a country manager, I’m responsible for overseeing the market’s financial results, ensuring the quality of loan issuance, and managing debt collection. These responsibilities are critical for maintaining investor confidence and ensuring the stability of our operations. Balancing these priorities with the ever-changing needs of the agricultural sector keeps the role both challenging and exciting. 

Our Riga office is also the company's main headquarters, and it houses essential teams like legal, sales, IT, and customer support. We collaborate closely with our Romanian team as it is a newer market – I will actually pay them a visit later this month – and we regularly exchange insights with Lithuania. Knowledge exchange programs and team visits across markets strengthen our operations, allowing us to share expertise and implement best practices. 

How would you describe the current state of the agricultural sector in Latvia? What makes the Latvian market unique? 

The agricultural sector is stable, though farmers are becoming more cautious with spending due to rising input costs and lower grain prices across Europe. The price of agricultural land has increased significantly over the past year, highlighting the growing demand for quality farmland as a long-term investment. 

A standout initiative in Latvia is the LANDE Farmers Club, where we help farmers pool their purchasing power to secure discounts on inputs and machinery. The Club has grown to nearly 1,000 members, getting to be nearly as large as the country's biggest cooperative, which has about 1,200 members. This community-driven approach to reducing input costs through bulk purchasing demonstrates that Latvian farmers are increasingly collaborative. 

Overall, Latvia’s farming diversity, cautious financial management, and community-driven initiatives align well with LANDE’s flexible and transparent loan offerings. 

What are the biggest challenges Latvian farmers face, and how does LANDE help address them? 

Latvian farmers face similar challenges to those across Europe, including rising costs, unpredictable weather, and unfavorable market conditions. Over the past two years, weather conditions have been particularly difficult. 

While we can’t control external factors like weather or market prices, LANDE actively works to support farmers in multiple ways. In addition to providing financing, we partner with insurance companies to help farmers manage risk, carbon programs to unlock additional income streams, and fertilizer sellers to reduce costs through bulk purchasing agreements. 

Looking ahead, we’re planning to expand our support by offering financial education programs and assisting farmers in applying for government grants to boost their income and stability. 

How did LANDE perform on your market in 2024?  

Our performance remained consistent with 2023, though loan usage shifted. Earlier, loans were largely for development, like purchasing land or machinery. By 2023–2024, they were more focused on inputs and repaying obligations. We prioritized collateral centered on land and machinery, ensuring long-term stability and better security for loans. 

As market conditions have shifted, has LANDE adjusted its credit scoring or loan approval processes? What specific changes have been implemented, and how have these helped mitigate risks?  

We regularly update our scoring processes to adapt to market conditions and keep track of everything happening in the industry. For example, two seasons ago, Latvian dairy farmers experienced a crisis due to low milk prices. In response, we significantly reduced the number of loans issued in this segment. 

Similarly, when input prices soared for grain farmers, we established strong partnerships with input suppliers. By organizing group purchases, we negotiated discounts of up to 30%, making inputs more affordable.  

Nowadays, a key part of our scoring process includes assessing farmers’ partnerships. We track where grain will be sold, where inputs are purchased, and any relevant agreements. If we identify repayment challenges, we can collaborate with these partners—having pre-established relationships makes it much easier to find solutions and recover loans. 

Defaults are a natural risk in any lending business. What is the current default rate for loans in Latvia, and what steps are you taking to minimize risk for investors?  

Farmers across Europe are facing many challenges, but those who diversify their income sources are faring better. The current default rate on the Latvian market is 2.7%. 

Out of 25 defaulted projects, 11 were backed by harvest pledges and were mostly issued in 2021–2022, with only one in 2024. To reduce risk, we shifted our strategy in 2024 to prioritize land- and machinery-backed projects with lower loan-to-value (LTV) ratios. This approach of course makes it easier to recover loans when defaults occur, but also fosters a stronger repayment culture by instilling greater borrower responsibility. 

Although there are some loans delayed by more than 90 days that could potentially default, we’re actively working with debt collectors to prevent this. In most cases, these clients remain in contact with us, and we’re exploring refinancing options with other lenders in Latvia to avoid defaults.  

What percentage of Latvia's defaulted loans have been successfully recovered? How are recovery processes going with the rest of them? Have there been changes to the debt collection approach in light of recent market conditions and/or internal decisions? 

In Latvia, we’ve successfully recovered 23% of defaulted loans (8 out of 34 projects), the highest recovery rate among LANDE markets. 

One success story is the case of Zentenes Lauksaimnieks AS - 221202-440635 (€54,900, harvest-backed). The grain was not delivered to the buyer, leading to a lengthy legal process. By coordinating with the client’s lawyer and their bank, we were able to secure full repayment. It took over a year, but persistence and regular follow-ups made the difference. 

Another notable recovery involved IK Pūre, with projects totalling €270,000. The client, heavily impacted by low milk prices, diversified income streams by starting a new grain-growing business, renting 400 ha of land, and buying additional machinery. We restructured the loans, pledged the new machinery, revalued assets, and ensured co-borrowing agreements. This collaborative approach turned a default into a sustainable solution. 
With your role being primarily focused on the lending side, do you feel a need to connect more with investors in 2025?  

Usually, my role involves indirect communication with the investor community, mostly through colleagues. However, I recognize the value of stronger direct connections and am eager to be more engaged with investors in 2025. This would help them better understand the performance of the Latvian market and give them confidence in our strategies. 

Based on the last few years’ experience and on economic, technological, and climate-related developments, what do you think are the biggest risks LANDE faces in the coming years, and how are you preparing to navigate them? 

Our biggest risks align with those faced by farmers: weather, geopolitics, war, and rising input costs. If farmers succeed, so do we. To navigate these challenges, we focus on partnerships, sharing knowledge, and learning from farmers to provide meaningful support. By spreading risks and building resilience, we aim to mitigate the impact of unforeseen problems. 

Climate change and new technologies are also reshaping agriculture. Young farmers are leading the way in embracing modern practices, but it’s encouraging to see the older generation adopting innovations as well. Precision farming technologies (GPS-guided machinery, soil sensors, drones) are helping farmers optimize resources and adapt to changing weather patterns. We’re exploring partnerships with companies like eAgronom to help clients adopt sustainable practices and align with the EU’s “Green Course” while continuing to provide affordable financing to facilitate this transition. 

What key upgrades and improvements would you like to see implemented on the LANDE Platform?  

We've built our systems from scratch and always discover potential improvements, and our Platform team has a clear plan for further developments. However, we’ve realized that what matters most to investors are tangible results, like successfully recovered defaults and earned returns. Right now, our priority is working hard through these challenging times in the EU rather than chasing aesthetics. 

What are your personal and professional goals for 2025?  
Professionally, I want to strengthen the team and increase productivity across departments. We’re also bringing on an experienced debt collection lawyer with over 10 years in agriculture and banking. I’d also like to be more accessible to investors so they have a clear understanding of how the Latvian market is performing.

Personally, I aim to be the best father to my two daughters, the best husband to my amazing wife, and win the Elite Amateur Hockey Championship in Latvia this spring! 😊