Project Description

Young Farmers Installation Prize

PEPAC

This support is aimed at the installation of young farmers, promoting gender equality through positive discrimination against women, as well as creating jobs in rural areas. The generational renewal of the agricultural fabric and the installation of young farmers contributes to bringing more entrepreneurship to the activity, more innovation and the adoption of new skills and management practices, helping to generate an increase in productivity levels on the farm and, at the same time, improving agri-environmental performance standards.

Download the Infosheet

Support Status

Preliminary Stage

Financing

Prize up to 30.000€

Territory

National Territory

Eligible Entities

Farmers

Young Farmers Installation Prize

PEPAC

This support is aimed at the installation of young farmers, promoting gender equality through positive discrimination against women, as well as creating jobs in rural areas. The generational renewal of the agricultural fabric and the installation of young farmers contributes to bringing more entrepreneurship to the activity, more innovation and the adoption of new skills and management practices, helping to generate an increase in productivity levels on the farm and, at the same time, improving agri-environmental performance standards.

Download the Infosheet

Support Status

Preliminary Stage

Financing

Prize up to 30.000€

Territory

National Territory

Eligible Entities

Farmers

Incentive Conditions

  • This intervention contributes to the following PEPAC targets:
    • Number of young farmers setting up, broken down by gender
    • Creation of new jobs

  • National Territory.

  • Young farmers setting up for the first time as farmers in charge of their holdings, including legal persons in the form of private limited companies with agricultural activities as their corporate purpose, provided that the managing partners, who are young farmers, hold the majority of the share capital and individually have a stake of more than 25% in the share capital.
  • The first installation as the person responsible for the holding is understood to be the situation in which the young farmer assumes direct ownership and management of an agricultural holding for the first time, and must cumulatively meet the following conditions:
    • Registration with the Paying Agency as a beneficiary;
    • Ownership of the holding;
    • Registration with the tax authority for agricultural activity.

  • Young farmer setting up for the first time;
  • Have adequate agricultural training or commit to starting it within 12 months of setting up;
  • Existence of a five-year Business Plan that is technically, economically and financially coherent, which must include:
  • A description of the farm’s initial situation;
  • Demonstration of the farm’s production potential;
  • Indication of the stages and goals for the development of the farm’s activities;
  • A description of all the investments to be made;
  • A detailed description of the actions needed to develop the farm’s activities, namely those related to environmental sustainability and efficiency in the use of resources, agricultural advice and training.

  • The support for installation associated with the Business Plan takes the form of a non-refundable incentive (1st installation premium), worth €20,000, with the following increases:
    • An increase of 25% of the premium if the Business Plan includes investments in the holding of €80,000 or more.
    • A component of €5,000 is added to the premium, including the increase, if the young person sets up exclusively (occupation and income), increasing this amount to €10,000 if the young farmer’s installation is located in a vulnerable area defined by RCM no. 21/2021.
  • In the case of companies in which more than one young farmer participates, the Business Plan must present a minimum investment of €25,000 per young farmer.
  • The final amount of the premium per young farmer in their first installation will be adjusted so that the combined incentive between this premium and the non-refundable support granted under intervention C.2.2.2 – Productive investment by young farmers cannot exceed 120% of the amount of eligible investment approved under this intervention.
  • The support will be paid in two tranches:
    • 80% – Start of Installation
    • 20% – After verification that the business plan has been properly implemented.

Incentive Conditions

In this intervention it is important to create the conditions to support investments aimed at adopting equipment, new technologies and knowledge. This intervention contributes to the following PEPAC goals:
Renewable energy production, including bioenergy;
Climate change mitigation and adaptation, and the production of renewable energies or biomaterials;
Productive and non-productive investments related to the protection of natural resources
Digital agricultural technologies;
Contribution to biodiversity;
Limiting the use of antimicrobials (prevention/reduction);
Promoting animal welfare;
Restructuring and modernization, including improving resource efficiency

National Territory.

Individuals or legal entities engaged in agricultural activity.

To be established and active in mainland Portugal.
Not be in difficulty and the investment must demonstrate economic and financial viability.
Submit a project, with a positive opinion from the relevant authority, demonstrating improved environmental/climate/animal welfare performance, above the mandatory conditions, in the following areas:
1. Investment related to climate and energy:
Promoting agricultural valorization in the management of livestock effluents;
Increasing atmospheric carbon storage capacity;
Increasing renewable energy production;
Improving the energy efficiency of agricultural holdings.
2. Investment related to the preservation of natural resources:
Contribute to improving the status of the associated body of water, namely in terms of water use efficiency and potential water savings;
Contribute to reducing the risk of degradation of the quality of water resources;
Reduce the risk of soil degradation and erosion;
Reduce ammonia (NH3) emissions.
Promote the use of natural biomass, sludge, manure and by-products (with zero impact in terms of pollution and reduced NH3 emissions).
3. Investment related to biodiversity:
Mitigate impacts on biodiversity;
Promote the conservation status of the natural biodiversity values of habitats associated with agricultural systems.
4. Investment to improve animal welfare

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 programs, up to the market value of the asset;
General costs related to these expenses and intangible investments.
When EU regulations impose new requirements on farmers, support may be granted for investments to comply with these requirements for a maximum period of 24 months from the date on which they become compulsory for agricultural holdings.
Not to lease or sell co-financed equipment, plantations, facilities or other investments for a period of five years from the last payment, without prior authorization from the Managing Authority.

The rate of support is maximum for projects with eligible investment values of less than 50,000 euros, reaching 80% ( 85% if it is a small holding), and decreasing proportionally with the value of the investment.
Specifically for investment components in existing irrigation systems on farms, the support rate is 80% of the eligible costs. This rate decreases 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):
Up to 50 thousand euros – 100% of the maximum support rate (80% or 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;
Over 350 thousand euros – 20% of the maximum support rate.

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