As part of the Grand Investment Plan 2018-2022 (a broad plan of investments in various sectors of the economy to promote environmental efficiency, employment, innovation…) the French government and Ministry of Agriculture and Food developed, in partnership with the European Investment Fund (EIF), the National Initiative for French Agriculture (INAF).
Supplementing regional initiatives taken by the EIF in Nouvelle Aquitaine and Occitanie, the INAF mobilizes national funds (54 million euros) and European Funds (45 million euros) as a Capped Guarantee Instrument covering the first losses of any loan portfolio.
The INAF should permit to catalyze, through four banks that will allocate loans, 1.099 billion euros in investment for French farmers.
Specifically, the initiative’s goals are to support:
- raising the income of farmers and ranchers through production of higher quality products (for instance under a geographical indication, or through local food systems) and diversification of productions on the farm;
- helping young farmers and ranchers to start their business, in particular for agroecological projects;
- transforming production systems in agriculture toward more sustainability (in particular reduction of use of water, fertilizers….), a higher food safety, while promoting innovation.