Hybrid loan - new financing model for sustainable generational shifts in agriculture

Important results from the project

The project developed and validated Gårdslånet, a hybrid loan that eases ownership transitions of farm and forest properties. The goals were met: a legal and tax analysis with an index-based interest model and a complete set of contract templates were produced, the product was validated through dialogue with farmers, banks, advisers and investors, and a preliminary fund structure with a capital strategy was designed.

Expected long term effects

Over time, Gårdslånet can make generational and ownership transitions easier and help young and new farmers take over land. The model shares risk and upside between generations and keeps land in active use. As the lender does not own the land, it offers a route, viable under Swedish law, to channel capital into agriculture over time.

Approach and implementation

The project was carried out in four work packages: legal and tax, sustainability incentive, target-group dialogue, and fund design and communication. The work comprised legal and tax analysis with external expertise, interviews and a workshop around a real ownership transition, and development of a fund structure and investor material. The project largely kept to schedule and collaboration worked well.