Market Structure Promotion (GAK Framework Plan 2024–2027, Funding Area 3A)
Year-round investment support in Hesse to improve the processing and marketing of agricultural products (GAK 3A) – grants for SMEs and producer groups. Applications can be submitted continuously.
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Grant criteria
Funding objective
The state of Hesse, with the support of the federal government and the EU, promotes investments in the collection, storage, cooling, sorting, market-oriented preparation, packaging, labeling, processing, and marketing of agricultural products. The goal is to increase the competitiveness of processing and marketing companies as well as to enhance value creation and resource efficiency.
Eligible expenses
- Investments in collection, storage, cooling, sorting, market-oriented preparation, packaging, labeling, processing, and marketing
- New construction and expansion of capacities including technical facilities
- Internal rationalization through conversion and/or modernization
- General expenses (architectural services, building permits, consulting)
Non-eligible expenses
- Acquisition of real estate and land
- Residential buildings and accessories
- Passenger cars and sales vehicles
- Own contributions
- Loan, leasing, and interest costs
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Eligible to apply
- Companies
- Cooperatives
- Interest Groups and Other Associations
Funding requirements
- Project must take place in Hesse
- Companies involved in the processing and marketing of agricultural products
- Fewer than 750 employees or annual turnover below 200 million EUR
- Minimum investment volume of 50,000 EUR
- At least 40% of the funded capacity must be committed through supply contracts for five years
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Documents required for application
- Application form
- Project description and business plan
- Financing plan
- Proof of SME status (number of employees, annual financial statement)
- Proof of minimum investment volume
- Proof of capacity commitment (supply contracts)
- Documents on resource protection contribution
Evaluation criteria
- Type, size, and orientation of the company
- Quality products (organic, PDO, PGI)
- Regional value chains
- Contribution to resource conservation
- Economic viability of the project
Description
Within the framework of the GAK Framework Plan 2024–2027, Funding Area 3A, the state of Hesse, together with the federal government and the EU, supports investments by SMEs, cooperative organizations, interest groups, and recognized producer communities in the processing and marketing of agricultural products. The goal is to increase the competitiveness of processors and marketers as well as to enhance regional value creation and resource efficiency. Funding is provided for measures related to collection, storage, cooling, sorting, market-oriented preparation, packaging, labeling, processing, and marketing. Also eligible are the new construction and expansion of capacities, modernization of technical facilities, internal operational rationalization, as well as general expenses such as architectural services, building permits, and consulting.
Grants cover 20% to 50% of eligible investment costs, with additional bonuses for quality products (organic, PDO, PGI) and regional value chains. A minimum investment volume of €50,000 and a minimum commitment of 40% of the funded capacity over five years through supply contracts are required. Projects can be implemented over a period of up to 36 months. Excluded are, among others, land acquisition, residential buildings, power and distribution vehicles, own labor, interest and leasing costs, as well as expenses related to primary production. Applications can be submitted year-round to the Regierungspräsidium Gießen. Required are the completed application form, a project description with business and financing plan, proof of SME status, investment volume, capacity commitments, and contribution to environmental and resource protection.
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