ZS Daugumnieki II

Loan

• Amount € 10000.00
• Interest rate 10%
• Term 12m
• Collateral type Harvest
• LTV 42%

Description

This project gives LANDE investors an opportunity to provide funding in the amount of € 10 000 for farming company Daugumnieki, to receive a loan for working capital.

This project gives an opportunity to make a loan with an annual rate of 10 %, LTV of 42%, and a loan term of 12 months, with monthly manner of interest payments and full repayment of the principal at the end of the loan term.

Financial results for ZS Daugumnieki in 2021 were : net turnover €53 556.

Borrower is engaged in crop farming in more than 117 ha arable land. 

In order to secure the repayment of the loan, the borrower has concluded an agreement for the summer wheat sale of next year's harvest in the volume of 80t. The repayment of the loan will be done once the harvest will be handed to the buyer.

The price of winter wheat is determined by the commodity exchange and at the time of the harvest will be approximately € 300 per ton thus the value of the harvest is estimated at € 24 000.

Borrower is a recipient of support payments from the European Agricultural Guarantee Fund and the 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 the loss of crops due to natural disasters, such as hail, rainfall, or storm, the harvest will be insured.