Funding for costs during harvesting

Loan

• Amount € 11250.00
• Interest rate 10%
• Term 4m
• Collateral type Harvest
• LTV 38%

Description

This project gives LANDE investors an opportunity to provide seasonal funding in the amount of €11 250 for farmer Jānis Atkalns, to receive seasonal loan for working capital and costs during harvesting. 

This project gives an opportunity to make a loan with an annual rate of 10 %, LTV of 38 %, a loan term of 4 months, with a monthly manner of interest payments.

Borrower is a farmer engaged in crop production and to secure the repayment of the loan, the borrower has concluded an agreement for summer wheat sale in volume of 100 t. The repayment of the loan will be done once the harvest will be handed to the buyer.

The price of wheat is determined by the stock exchange and at the time of the harvest will be approximately € 300 per ton, thus the value of the harvest is estimated at  € 30 000.

The borrower is a recipient of support payments from European Agricultural Guarantee Fund and European Agricultural Fund for Rural Development. For additional guarantee the owner of the farm is giving a personal surety in the full loan amount.

To avoid loss of crops due to natural disasters, such as hail, rainfall or storm, the harvest will be insured.