The Rural Development Fund (MES), on behalf of the Minister of Rural Affairs Mart Järvik, drew up a new strategy, which will see €100 million allocated to support young people moving to rural areas and to support financially challenged farmers.
Last week, the new strategy was presented to the MES Council, and in December it will either be approved or re-discussed, Maaleht reported Thursday .
The financing of the strategy is thought to be €100 million and will fund two main components with €50 million each.
Firstly, a trust fund is being created to support young families wishing to settle in rural areas, to whom MES offers the opportunity to obtain a long-term loan on favorable terms with insurance.
Secondly, the so-called "rural capital", half of the money will be used by MES for buying land from farmers with financial difficulties, then to lease the same land to them, and when the farmer's financial situation straightens out, sell him this land back. The remaining €25 million is generated from state-owned agricultural land, which will be transferred to the management of MES.
Editor: Helen Wright