For 13 years now,* Latvian farmers have been making active use of the land purchase lending programme developed and introduced by the Ministry of Agriculture, which offers the opportunity to buy agricultural land for production purposes at reduced interest rates. These loans are aimed at small and medium-sized farms, as well as young farmers who have economically sound farm development plans but are unable to obtain a loan from commercial banks because of elevated risk or insufficient collateral.

The main benefit of the programme – farms have the opportunity to develop production, which in turn means that the public has everyday access to a wide range of food produced in Latvia at competitive prices. Latvia's self-sufficiency in food is particularly important in the current global situation, with russia's war in Ukraine now in its fourth year not far from Latvia's borders, and with disruptions to food supply chains also evident in the market.

In the 13 years since the land lending programme was introduced, farmers have used the opportunity it offers to buy 63,263 ha of agricultural land for agricultural production. By 30 June this year, 3,201 loans had been approved for a total of 179.11 million euros.

Minister for Agriculture Armands Krauze: “Since the programme began, farmers have made very active use of the opportunities it offers to buy the main means of production – agricultural land – at low interest rates and with a longer loan repayment period. The land purchase lending programme is one of the measures we have introduced that promotes the growth of agricultural production in Latvia's rural areas and contributes to the national economy. To date, the programme has also been used by many small and medium-sized farms, as well as by young farmers, who sustain socio-economic activity and population levels in the countryside.”

Until 16 July 2024, the final interest rates on loans for land purchase under this programme were 2.2% plus the price of Treasury resources, and from 17 July 2024 they have been 1.9% plus the price of Treasury resources. The maximum loan term is up to 30 years, and the maximum loan amount per borrower is up to one million euros.

Support for farmers to purchase land is currently provided in accordance with Cabinet of Ministers Regulation No. 295 of 22.05.2018, “Procedures for granting state aid for the purchase of agricultural land for the production of agricultural products”, drawn up by the Ministry of Agriculture. Loans under the land lending programme are issued by the development and finance institution Altum.

* – all the figures given are as at 30.06.2025.