Bring your agricultural projects to life with bespoke financing.
Are you a farmer, livestock breeder, processor or other stakeholder in the agri-food chain?
Do you have an investment project to develop your farm, modernise your equipment or increase your production?
CPA Agricultural Investment provides flexible and advantageous financing solutions that are tailored to the specific needs of the agricultural sector.
Sustainably finance your agricultural and agri-food projects
Who is this credit for?
CPA Agricultural Investment is an investment loan aimed at all professionals in the agricultural and agri-food sectors who are seeking to create, modernise or expand their farms and infrastructure, either individually or in partnership.
Eligible clients benefit from interest rate subsidies on financing under CPA Agricultural Investment, provided by either the Ministry of Agriculture, Rural Development and Fisheries or the General Directorate of the Treasury.
Eligibility conditions
The following are eligible for financing under the CPA Agricultural Investment scheme:
- Owners of private land and holders of concessions for agricultural and/or livestock farms belonging to the private domain of the State, either individually or collectively.
Farmers and livestock breeders, either individually or organised in cooperatives or agricultural interest groups;
- Subsidiaries of the public enterprise for public enterprise for the development of strategic agricultural crops (public economic enterprise/joint stock company/ for the development of strategic agricultural crops) (EPE/SPA/DCAS);
- Economic enterprises involved in the production, processing, valorisation and exploitation of agricultural and agri-food products;
- Economic entities active in the agri-food sector on non-agricultural land;
Tenants of private agricultural land with notarised lease agreements and property eligible for a mortgage who do not intend to construct real estate infrastructure on the land.
For a loan subsidised by the Ministry of Agriculture, the project must be validated by the relevant province's Agricultural Services Directorate (DSA).
Funded intervention areas
The CPA Agricultural Investment Loan covers:
- The creation and equipping of agricultural and/or livestock farms;
- The modernisation of existing agricultural and/or livestock farms;
- The intensification, processing and enhancement of agricultural and livestock products requiring financing.
- The storage and preservation of agricultural products, especially those intended for mass consumption.
- The packaging and export of agricultural products;
- Any other activity within the agricultural or agri-food sector.
Financing Conditions
-Loan Amount: Up to 90% of the total project cost.
-For loans subsidized by the Ministry of Agriculture, financing is capped at:
- 100 million DZD for individual loans
- 200 million DZD for federative loans.
Term and deferment period
- Credit term: Up to 15 years, depending on the nature of the project (including deferment period):
- Deferment period (including the utilization period):
- Up to 2 years for medium-term credit
- Up to 5 years for long-term credit
- Utilization period:
- Up to 12 months for medium-term credit
- Up to 24 months for long-term credit
interest Rate and Subsidy
The CPA Agricultural Investment loan (MTC/LTC) accrues interest at rates set by the current General Banking Conditions
This interest rate may be partially subsidized by the Treasury according to regulatory provisions.
For investments eligible for Ministry of Agriculture financing, the conditions are as follows:
-Interest rate (MTC/LTC) 5.50% per year excluding tax, partially subsidized as follows (at the beneficiary's expense):
- For southern regions:
- % for the first 8 years
- 1% from the 9th to 10th year
- 3% from the 11th to 13th year
- From the 14th year onwards, the beneficiary bears the full interest rate.
- For other regions:
- 0% for the first 6 years
- 1% from the 7th to 8th year
- 3% from the 9th to 10th year
- Beyond the 10th year, the beneficiary bears the full interest rate
Release of funds
Once the conditions for granting the loan have been met, the funds will be released in the form of bank cheques made out to the supplier(s) or the production company, depending on.....
Repayment terms
Repayment of the CPA agricultural investment loan (medium-term or long-term) is based on a quarterly, bi-annual or annual schedule (principal and interest), depending on the nature of the activity of the agricultural season.
Fees and commissions
The customer must pay the application review fee upon submission of the application (non-refundable), as set out in the Bank's General Terms and Conditions.
Financing granted will be subject to management and commitment fees, as set out in the Bank's General Terms and Conditions, depending on the amount of credit granted and the disbursements made.
Required guarantees:
The guarantees required will be decided on a case-by-case basis at the Bank's discretion.
- A conventional or legal mortgage on the farm in the case of land under concession or private ownership.
- Mortgage guarantee on a third-party farm.
- Joint and several guarantees from partners, cooperative members, or members of a legally constituted group (for legal entities).
- Pledge of equipment.
- Pledge of goodwill, including equipment.
- Pledge on rolling stock;
Subscription to the Agricultural Guarantee Fund and Investment Credit Guarantee Fund (FGA-CGCI).
- Subscription to insurance policies depending on the type and purpose of the financing, with delegation to the bank;
- Multi-risk professional insurance + Natural disasters insurance;
- Multi-risk livestock insurance (cattle, poultry and bees);
- Multi-risk crop insurance;
- All-risk rolling stock insurance (agricultural equipment).
- Application compilation
Depending on the nature of the activity and the legal status of the business, the application must contain the following documents:
- A credit application quantified and signed by the customer.
- Proof of payment of the application examination fee.
- A copy of the professional farmer or livestock breeder card issued by the CNA.
- A copy of the commercial register for economic entities operating in the production, processing, storage and/or valorisation of agricultural products.
- A valid identification form issued by the CNA.
- Copy of the articles of association for legal entities.
- Copy of the tax registration card (NIF).
- Minutes of appointment and delegation of powers to the manager/chief executive officer, etc.
- A copy of the applicant's valid identity card (if the applicant is a natural person) or of the manager/chief executive officer (if the applicant is a legal entity).
- A certificate of residence at the permanent address, or any other document proving the applicant's exact address.
- A recent certificate of no debt from the bank of Agriculture and Rural Development BADR (less than three months old).
- For active farmers (natural persons/legal entities), as applicable:
- Balance sheets and income statements for the last three financial years, stamped by the tax authorities; or
- Tax returns for those subject to the flat-rate tax regime (IFU).
- Balance sheets and projected income statements for the full term of the requested loan.
- Simplified projected accounting statements (income and expenditure) for three years for applicants subject to the flat-rate scheme.
- For novice farmers (individuals or legal entities):
- An opening balance sheet.
- Balance sheets and projected income statements for the entire duration of the requested loan.
- Tax and social security statements, either cleared or accompanied by a repayment schedule.
- A technical and economic study prepared or validated by the BNEDER covering the entire duration of the project.
- A copy of the title deed, concession title or lease for the agricultural land or any other land used for the planned activity, published at the land registry.
- A negative certificate of mortgage registration dated less than three months ago for borrowers who are property owners.
- A copy of the environmental services authorisation for projects relating to livestock farming (sheep, cattle, goats, poultry, etc.).
- A copy of the health approval (if necessary) or any other authorisation to carry out the activity.
- A report on the existence, expertise and valuation of the real estate, premises, land or building (industrial and/or livestock, shed, etc.) offered as collateral, drawn up by a design office approved by the Bank.
- Estimated cost and quantity of any development, renovation, extension or refurbishment work on livestock and farm buildings, issued by a design office approved by the bank.
- Pro forma invoices for the equipment and rolling stock to be purchased.
- A provisional schedule of capital expenditure by category.
- A valid building permit and related technical documents (in the case of construction or extension financing), as well as authorisation for works for other interventions (e.g. renovation, reallocation and rehabilitation).
- For “CPA agricultural investment loans subsidized by the Ministry of Agriculture:
- Project validation certificate issued by the Province Agricultural Services Directorate (DSA/Province).