Agriculture always demands significant financing, from fertilizers and seeds to machinery costing hundreds of thousands. Farmers need loans not only to acquire agricultural raw materials and equipment or invest in agricultural technology but also for working capital to cover operational expenses. “If you want to expand and not stand still, you must always be interested in innovations and invest,” says Ąžuolas Jankauskas, a farmer from the Širvintos district in Lithuania.

Agriculture always demands significant financing, from fertilizers and seeds to machinery costing hundreds of thousands. Farmers need loans not only to acquire agricultural raw materials and equipment or invest in agricultural technology but also for working capital to cover operational expenses. “If you want to expand and not stand still, you must always be interested in innovations and invest,” says Ąžuolas Jankauskas, a farmer from the Širvintos district in Lithuania.

Ąžuolas Jankauskas, a farmer managing nearly 1700 hectares in the Širvintos region, got involved in agriculture with his entire family: his wife, son, and daughters. In 2003, they started with just an old yard and a few beehives, and today, they have dozens of modern tractors and other machinery, thousands of hectares of land, and employ dozens of local residents.

Diving into Agriculture, Inspired by Daughters’ Love for Horses

Ą. Jankauskas himself studied agriculture and beekeeping, although he couldn’t keep bees for long due to his wife’s allergy. However, what encouraged him to start a farm was his daughters’ desire to ride horses. “Their love for horses brought us to agriculture. They wanted to ride, so we bought two horses, and then we saw the need for machinery: for hay, tractors, balers, and eventually land,” the farmer shares about the beginning, adding, “I have to thank my daughters for their interest in horses because those horses lured the family to the countryside.”

The family built their 1700-hectare farm from scratch, starting with just an old yard and a few horses. The farmer emphasizes that agriculture is a sector that constantly requires investments.

To Expand, You Must Keep Pace with Technology

Indeed, Lithuanian farms today are no longer as they were decades ago. They are modern and employ smart technologies. Old tractors tilling the land are now rarely seen, and workers no longer want to spend entire days with malfunctioning equipment or in combines without air conditioning.

“Agriculture is a tough and exhausting sector. Once the season starts, you don’t count the working hours anymore, and you might have to spend twelve or thirteen hours in a tractor. Moreover, it’s a sector heavily dependent on external factors: climate and weather conditions. The season is short, and this time must be utilized as efficiently as possible. That’s why you always need something if you want to keep up; you must be interested in new developments and technologies and constantly implement them,” Ą. Jankauskas shares.

The farmer explains that in such cases, additional financing greatly helps farmers. They have sought additional financing more than once, and loans have significantly helped their family expand the farm. However, farmers have also not neglected to take advantage of state-provided guarantees.

“Agriculturists often face a shortage of working capital, so quick financing decisions are very useful. Sometimes you need additional funds quickly because you unexpectedly need to buy machinery or land. Such financings are very necessary,” Ą. Jankauskas states, adding, “When we sought financing for the first time, we managed to buy some serious pieces of land, which we couldn’t have done without a loan. The turnover is in millions; you buy for a million, recover much of that, of course, you don’t have that in the bank, so you always look for the best conditions.”

Audrius Česnakas, a representative of a financial technology company, notes that the borrowing habits of farmers have somewhat changed in recent years. While farmers confidently invested in modernizing their farms in previous years, there is a noticeable increase this year in the need for working capital. Farmers are also actively seeking state-provided favorable measures and financing opportunities on better terms.

“At this moment, subsidized loans are more relevant than ever ‒ rising prices often lead to working capital problems, so the opportunity to get a subsidized loan is important for many farmers. Our experience shows that the average loan amount is about 100 thousand euros and can be crucial assistance for farmers,” says A. Česnakas.

An expert from smeGo adds, “The provided financing can also be intended for agricultural machinery and its components, biological assets, veterinary products, agricultural cooperative businesses purchasing products from their members, and other costs necessary for continuing agricultural activity.”