Regional Government and financial institutions halve interest rates on purchase of agricultural land - Communication

Secretaria Regional da Agricultura e Alimentação

The Regional Secretary for Agriculture and Food, António Ventura, presided over the signing of the cooperation agreement between the Government of the Azores, through IROA, S.A., and two regional financial institutions.

This measure, which is part of the Incentive Scheme for the Purchase of Agricultural Land (RICTA), reiterates the Azorean Government’s commitment to agricultural activity in the Region.

The protocol was signed by Caixa de Crédito Agrícola Mútuo dos Açores and Caixa Económica da Misericórdia de Angra do Heroísmo, making them the first banking institutions to sign this updated cooperation agreement.

The signing takes place precisely in the month marking the 18th anniversary of the publication of the Regional Legislative Decree no.23/2008/A of July 24, the legislation governing the incentive scheme for the purchase of agricultural land, commonly known as RICTA.

In view of developments in the financial market since 2011, the Regional Government considered it appropriate to renew the protocols entered into with financial institutions.

The aim is to reduce the spread applicable to transactions for the purchase of agricultural land covered by the support schemes managed by IROA.

Consequently, the spread has been reset at 1.5%, as opposed to the 3% previously applied.

This reduction also enables the IROA to increase its financial resources available to approve new applications under the agricultural land acquisition scheme.

During the ceremony, António Ventura emphasised that the partnership with Caixa de Crédito Agrícola Mútuo dos Açores and Caixa Económica da Misericórdia de Angra do Heroísmo is “a clear sign of confidence on the part of financial institutions in the dynamics of Azorean agricultural entrepreneurs and the strategic importance of the agricultural sector for wealth generation and economic development in the Autonomous Region of the Azores.”

The government official also stressed that facilitating access to credit “is essential for the progress of agrifood production, making the land the key asset for the economic viability and sustainability of agricultural holdings.”

The Regional Secretary also pointed out that “the Azores are now producing more food from their own land, which is boosting the Region’s food security and contributing to increased self-sufficiency in food production for the local population."

So far, 490 applications have been approved under the Credit Support Scheme for Land Acquisition (SICATE) and the Incentive Scheme for the Purchase of Agricultural Land (RICTA), covering a total area of 2,578.58 hectares.

António Ventura also highlighted the role of IROA, S.A., particularly its President, Pedro Ribeiro, in implementing these support mechanisms and carrying out land management and structuring policies in the Region.

“IROA, S.A. has been a key partner for Azorean farmers, ensuring close support, technical guidance and solutions that help improve the organisation of agricultural land and promote a more efficient and sustainable use of available resources,” he said.

With this protocol update and the reduction in the financial costs associated with the acquisition of agricultural land, the Regional Government is strengthening its strategy towards modernisation, restructuring and sustainability of agricultural holdings, whilst promoting generational renewal and adding value to regional agrifood production.