358 Laimonas Noreika - From FinTech to Farms: bridging the €60B loan gap for Europe's small farms

A conversation with Laimonas Noreika, founder of HeavyFinance, about providing loans to farmers, bringing innovation to the traditionally stagnant agri-loan sector (some numbers: over €70M loaned to farmers and over 13,000 individual investors have invested through them). 

The profitability of regenerative agriculture isn't just a theory—it's backed by hard data from hundreds of thousands of hectares across Eastern Europe. According to Laimonas, the financial case for regenerative farming methods is compelling, showing roughly 20% higher profits compared to conventional approaches, even without factoring in potential carbon credit revenue.

Traditional banking institutions have created a €60 billion annual financing gap for small and medium-sized European farms, which means we need institutional investors. Some, like the European Investment Fund, have invested through HeavyFinance. And why aren’t banks stepping in? Because small farmers don’t fit their criteria well. So, we need new fintech solutions and scale. 

Despite agriculture presenting lower default risks than many other industries, banks avoid these loans because of regulatory requirements that penalize them when farmers experience seasonal payment delays. This financing gap has slowed the transition to more sustainable and profitable farming methods, particularly in Eastern Europe's breadbasket regions where soil organic carbon levels have plummeted from approximately 150 tons per hectare historically to just 30 tons today.

HeavyFinance bridges this gap with an innovative approach: providing interest-free loans to farmers transitioning to regenerative practices, particularly for purchasing no-till seeders and implementing cover cropping systems. Instead of charging interest, they take a percentage of future carbon credits generated by improved farming practices. This creates a powerful incentive system where farmers access needed capital without interest payments while simultaneously improving soil health, reducing input costs, and increasing crop resilience.

More about this episode on https://investinginregenerativeagriculture.com/laimonas-noreika.

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In Investing in Regenerative Agriculture and Food podcast show we talk to the pioneers in the regenerative food and agriculture space to learn more on how to put our money to work to regenerate soil, people, local communities and ecosystems while making an appropriate and fair return. Hosted by Koen van Seijen.

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