Financing for Renewable Energy Sources in the Agricultural Sector
Piraeus Bank has long supported investments in Renewable Energy Sources and provides significant know-how for the Agricultural Sector and RES investments. Through its specialised Agricultural Banking and Sustainable Banking Departments, it aims to deliver customised service to farmers and agriculture businesses in order to provide the most suitable solutions, tailored to each farmer’s needs.
With this in mind, it offers a series of specialised financing solutions to its customers in the agricultural sector, which invest in photovoltaic stations for own consumption or sale of energy, thus recognising the opportunities for sustainable investments with added social and environmental value.
This initiative corresponds to the Bank’s firm commitment to support environmentally and socially responsible entrepreneurship, to its adherence to the Responsible Banking Principles, as well as to its effort to contribute to the country’s objectives regarding Renewable Energy Sources.
Financing for the installation and modernisation of irrigation systems
The agricultural sector is one of the most important consumers of water resources, since farming activities require substantial quantities of water.
Improving irrigation water management is essential for a sustainable and productive primary sector.
Seeking to contribute to the renewal of the relevant equipment, Piraeus Bank provides financing for the modernisation of existing irrigation systems as well as for the installation of modern methods for sustainable management of water resources, which is the key parameter of sustainable development.
Financing of investment projects for the management of climate change risks
The agricultural sector is exposed to climate change impacts. Farming is the only type of professional activity whose financial results are exposed to a series of unpredictable factors. Weather conditions are considered to be the main factor affecting crop growth.
In an effort to enhance the protection of agricultural holdings against extreme weather events and the risks arising from climate change, Piraeus Bank provides financing for the installation of hail protection nets, through a specialised loan - the “Active Protection of Agricultural Crops” Loan, which covers the purchase of materials and the installation costs for hail protection nets and anti-rain covers.
Investment financing for Young/New Farmers
Increased employment in the agricultural sector contributes to both rural financial development and social cohesion, which are important pillars of sustainable development. For this reason, the entry of new producers is of strategic significance, since their new ideas and eagerness can become the driving force for the sector’s modernisation and the improvement of its competitiveness.
Piraeus Bank focuses on these needs and offers specialised solutions which are more than just financing. Through the specialised “Investment financing for Young/New Farmers”, it provides the necessary liquidity to facilitate both the initial installation as well as the modernisation of the existing agricultural holding. Through the loan, the purchase of farmland can be financed, along with crop and livestock capital, mechanical equipment and livestock buildings.
Facilitating access to financing for small agricultural holdings, both for their production needs and to cover needs related to interventions for limiting agricultural production costs, contributes to boosting employment and production.
Through the Farmers’ Micro-finance product, Piraeus Bank enables the producer to promptly cover needs related to agricultural activities. In particular, farmers can implement small interventions that enhance the viability of agricultural holdings, while safeguarding natural resources. Indicatively, such interventions include the installation of inverters for improved efficiency of electric water pumps, actions to reduce irrigation system losses, covering soil studies, smart farming services, etc.
The Contract Banking Programme is emerging as a dynamic driving force for agricultural development in Greece, since it is adaptable to the needs and utilises the potential of all those involved in the agricultural sector, thus contributing catalytically to its modernization and the improvement of its competitiveness. It is an innovative financing model that seeks to create sustainable food systems and strong value chains in the agrifood industry.
In this framework, Piraeus Banks ensures the necessary liquidity, from the producer to the processing and marketing of agricultural products, thus improving productiveness and openness in the agricultural sector. The development of the programme has had a significant impact on the sector, with mutual benefits for producers as well as for processing/commercial businesses and cooperatives.
The Contract Banking Programme approaches the value chain of the agrifood industry holistically and contributes to streamlining the production cost of agricultural products while enhancing the establishment of relationships of trust between the parties involved: producers/agricultural cooperatives - processing businesses. Interconnected and sustainable value chains are created in this manner, paving the way to competitiveness in the international market, while always adhering to the key principles of sustainable development.