Funding Guideline Agriculture, Investment, Business Start-up – FRL LIE/2023 – Investments in Agricultural Enterprises Including Horticulture and Viticulture

The Funding Guideline Agriculture, Investment, Start-up – FRL LIE/2023 is aimed at agricultural enterprises in the Free State of Saxony and supports investments in farms that focus on animal welfare, climate and environmental protection, as well as related modernization and expansion measures. The program promotes investments in the area of livestock farming – such as the construction or modernization of stable facilities and internal operations, with a particular emphasis on improvements in animal welfare (for example, through species-appropriate walking and lying areas, optimized feeding and drinking systems, as well as suitable expansion options to reduce emissions) – as well as measures in crop production, including horticulture and viticulture. Furthermore, investments in the processing and marketing of agricultural products as well as in the digitization of business processes can also be subsidized.

The funding is provided as a grant, with funding rates of up to 65 percent of eligible total expenditures possible; in particular, measures in livestock farming are supported with grants of 40 percent, while investments aimed at enhancing competitiveness in livestock farming receive 25 percent support. For facilities in the areas of horticulture and viticulture, differentiated funding rates apply, which also include surcharges for structural investments in disadvantaged areas or farms operating according to recognized ecological standards. The eligible investment framework ranges from a minimum of 20,000 euros per project up to a maximum of 5 million euros per enterprise for the entire funding period 2023 to 2027.

Key requirements include that the enterprise predominantly produces goods according to Annex I of the TFEU and generates more than 25 percent of its sales revenue from these, while the public sector’s equity participation must not exceed 25 percent of the equity capital. Further requirements concern securing the overall financing of the project, compliance with a maximum livestock density (less than 2 large livestock units per hectare), as well as proof of the professional qualification of the farm management. Applications must be submitted electronically and prior to the start of the project. The support provided by this guideline aims not only to realize business-related modernizations but also to promote sustainable development and innovation processes in Saxon agriculture.