Agricultural Subsidies: Up to €130,000 Available for Tractor Purchases

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Exploring Agriculture Grants: Up to €130,000 for New Machinery

For those managing agricultural businesses, there are significant aids available for mechanization and technological innovation, including agriculture bonuses that can reach up to €130,000 for purchasing tractors and farming equipment.
Here’s an overview of who qualifies for such assistance.

Despite various income support initiatives for agricultural entrepreneurs, incomes in the farming sector remain relatively low, which hampers innovation.
Innovation is essential for enhancing competitiveness and improving farmers’ quality of life.
Therefore, aside from the financial contributions set out in the CAP 2023-2027 for various crops, additional support is now available to drive technological advancements.

Types of Agricultural Support

Multiple forms of aid are accessible for purchasing a tractor or other mechanization tools, helping farmers to save significantly.
Let’s examine how to secure up to €130,000 for a tractor purchase.

Grants for Machinery Purchase

The primary type of support for tractor purchases stems from the Innovation Fund in Agriculture managed by Ismea (Institute of Services for the Agricultural Food Market).
A remarkable budget of €100 million will be available in 2024 solely for tractor acquisitions.

This funding provides a non-repayable contribution between 40% and 80% for the purchase of machinery and equipment.
The aim is to enhance productivity in the agriculture, fishing, and aquaculture sectors.
The contribution is targeted at innovative SMEs, focusing on state-of-the-art machinery equipped with robotic and sensor technologies to improve productivity—such as efficient water management and reduced chemical usage.

Transition Plans for Technological Advancements

Funding from the Transition Plan 4.0 is still available for 2024, albeit with reduced credit opportunities that drop from 40% in 2023 to 20%.
And for 2024-2025, the new Transition Plan 5.0 introduces a tax credit of up to 45% for investments in interconnected machinery that positively impact energy consumption, including incentives for energy efficiency.

ISI Inail Grant for Equipment Purchases

Additionally, the ISI Inail grant offers an impressive €90 million fund for 2024 for the purchase of tractors and equipment.
These must enhance workplace safety, health protection, and reduce pollutant emissions.

For single purchases, the grant can reach up to €130,000, based on 65% of a maximum expenditure of €200,000—this represents substantial support for farmers.
Funds are credited directly to bank accounts without the need for repayment.
However, applicants must be cautious as submissions are analyzed, and contributions are granted based on the order applications are received until the fund is exhausted.

On the other hand, the New Sabatini provides a backup guarantee of up to 80% of the requested amount, but it results in less favorable benefits.

For detailed information regarding other supports available in agriculture, visit our additional resources.

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