Project Description
Agricultural Productive Investment: Modernization
PEPAC
This support aims to strengthen competitiveness, improve performance and ensure the viability and sustainability of agricultural holdings by increasing production, creating value, improving product quality, introducing innovative methods and products, namely to improve the environmental performance of agricultural holdings.
Support Status
Preliminary Stage
Financing
More than 500.000€
Territory
National Territory
Eligible Entities
Farmers
Agricultural Productive Investment: Modernization
PEPAC
This support aims to strengthen competitiveness, improve performance and ensure the viability and sustainability of agricultural holdings by increasing production, creating value, improving product quality, introducing innovative methods and products, namely to improve the environmental performance of agricultural holdings.
Support Status
Preliminary Stage
Financing
More than 500.000€
Territory
National Territory
Eligible Entities
Farmers
Incentive Conditions
- Support under this measure makes a cross-cutting contribution to the vast majority of the priorities and cross-cutting objectives of rural development, since its operationalization will be decisive in boosting agricultural investment, promoting market integration, overcoming the limitations arising from Portugal’s soil and climate conditions, promoting the efficient and sustainable use of resources, innovating and improving the organization of production.
- This intervention contributes to the following PEPAC goals:
- Renewable energy production, including bioenergy
- Benefit from support for digital agricultural technologies
- Creation of new jobs
- Restructuring and modernization of the agricultural sector
- National Territory.
- Natural or legal persons, public or private, who are farmers.
- The investment project must demonstrate economic and financial viability and be aligned with the specific objectives of the PEPAC Regulation (project merit);
- More than one investment project can be submitted if the promoter demonstrates that the project is different in terms of scope, geography or time;
- For holdings that have an area of pasture (temporary or permanent), fallow land, leguminous crops or rice, of less than 25% of the total area of the holding, if they present an investment project in permanent crop plantations with an area of more than 10 hectares, it is necessary to ensure an adjacent non-productive area for improving or increasing biodiversity (fallow land, landscape features, hedges, buffer strips along watercourses and others that may be classified as such), with a minimum size of 3% of the plantation area covered by the project.
- Eligible expenditure includes:
- Expenditure relating to the construction, acquisition, including leasing, or improvement of immovable property;
- Purchase or lease – purchase of new machinery and equipment, including computer software, up to the market value of the asset;
- General costs related to these expenses and intangible investments.
- Studies and specialized technical services in precision agriculture are only eligible when associated with tangible investments.
- Where Community regulations impose new requirements on farmers, support may be granted for investments to comply with these requirements for a maximum period of twenty-four months from the date on which they become compulsory for agricultural holdings.
- The rate of support is maximum for projects with eligible investment values of less than 50,000 euros, reaching 65% ( +20pp if it is a small holding), and decreases proportionally with the value of the investment.
- Specifically for the investment components in existing irrigation systems on farms, the support rate is 80% of the eligible costs, and for investments in irrigation systems in new irrigated areas the support rate is 65% of the eligible costs. These rates decrease proportionally with the value of the investment.
- The rate of support is successively applied to the value of the project’s eligible investment (measured on the date of the decision), and a “fixed non-refundable grant” of 169,000 euros is awarded to projects with an eligible investment of more than 500,000 euros:
- Up to 50 thousand euros – 100% of the maximum support rate (65%, 85% if it is a small holding);
- From 50,000 euros to 150,000 euros – 80% of the maximum support rate;
- From 150,000 euros to 250,000 euros – 60% of the maximum support rate;
- From 250,000 euros to 350,000 euros – 40% of the maximum support rate;
- From 350,000 euros to 500,000 euros – 20% of the maximum support rate;
- Over 500 thousand euros – “non-refundable grant” support will be 169 thousand euros.
- Certain types of expenditure, such as plantations, will be supported through unit costs.
Incentive Conditions
Support under this measure makes a cross-cutting contribution to the vast majority of the priorities and cross-cutting objectives of rural development, since its operationalization will be decisive in boosting agricultural investment, promoting market integration, overcoming the limitations arising from Portugal’s soil and climate conditions, promoting the efficient and sustainable use of resources, innovating and improving the organization of production.
This intervention contributes to the following PEPAC goals:
Renewable energy production, including bioenergy
Benefit from support for digital agricultural technologies
Creation of new jobs
Restructuring and modernization of the agricultural sector
National Territory.
Natural or legal persons, public or private, who are farmers.
The investment project must demonstrate economic and financial viability and be aligned with the specific objectives of the PEPAC Regulation (project merit);
More than one investment project can be submitted if the promoter demonstrates that the project is different in terms of scope, geography or time;
For holdings that have an area of pasture (temporary or permanent), fallow land, leguminous crops or rice, of less than 25% of the total area of the holding, if they present an investment project in permanent crop plantations with an area of more than 10 hectares, it is necessary to ensure an adjacent non-productive area for improving or increasing biodiversity (fallow land, landscape features, hedges, buffer strips along watercourses and others that may be classified as such), with a minimum size of 3% of the plantation area covered by the project.
Eligible expenditure includes:
Expenditure relating to the construction, acquisition, including leasing, or improvement of immovable property;
Purchase or lease – purchase of new machinery and equipment, including computer software, up to the market value of the asset;
General costs related to these expenses and intangible investments.
Studies and specialized technical services in precision agriculture are only eligible when associated with tangible investments.
Where Community regulations impose new requirements on farmers, support may be granted for investments to comply with these requirements for a maximum period of twenty-four months from the date on which they become compulsory for agricultural holdings.
The rate of support is maximum for projects with eligible investment values of less than 50,000 euros, reaching 65% ( +20pp if it is a small holding), and decreases proportionally with the value of the investment.
Specifically for the investment components in existing irrigation systems on farms, the support rate is 80% of the eligible costs, and for investments in irrigation systems in new irrigated areas the support rate is 65% of the eligible costs. These rates decrease proportionally with the value of the investment.
The rate of support is successively applied to the value of the project’s eligible investment (measured on the date of the decision), and a “fixed non-refundable grant” of 169,000 euros is awarded to projects with an eligible investment of more than 500,000 euros:
Up to 50 thousand euros – 100% of the maximum support rate (65%, 85% if it is a small holding);
From 50,000 euros to 150,000 euros – 80% of the maximum support rate;
From 150,000 euros to 250,000 euros – 60% of the maximum support rate;
From 250,000 euros to 350,000 euros – 40% of the maximum support rate;
From 350,000 euros to 500,000 euros – 20% of the maximum support rate;
Over 500 thousand euros – “non-refundable grant” support will be 169 thousand euros.
Certain types of expenditure, such as plantations, will be supported through unit costs.
