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358 Laimonas Noreika - From FinTech to Farms: bridging the €60B loan gap for Europe's small farms
Manage episode 473269116 series 2920797
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.
==========================
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.
==========================
👩🏻💻 VISIT OUR WEBSITE ht
Thoughts? Ideas? Questions? Send us a message!
Thank you to our Field Builders Circle for supporting us. Learn more here
Get your tickets here, regular tickets are sold until Feb 1st
https://2025.ai4soilhealth.eu/
https://foodhub.nl/en/opleidingen/your-path-forward-in-regenerative-food-and-agriculture/
Find out more about our Generation-Re investment syndicate:
https://gen-re.land/
Feedback, ideas, suggestions?
- Twitter @KoenvanSeijen
- Get in touch www.investinginregenerativeagriculture.com
Join our newsletter on www.eepurl.com/cxU33P!
Support the show
Thanks for listening and sharing!
Chapters
1. 358 Laimonas Noreika - From FinTech to Farms: bridging the €60B loan gap for Europe's small farms (00:00:00)
2. What should smart investors, who want to invest in reg ag and food look out for? (00:44:59)
3. What would you do if you were in charge of a 1B investment portfolio tomorrow morning? (00:47:09)
4. What do you believe is true about regenerative agriculture that others don’t believe to be true? Inspired by John Kempf (00:48:49)
5. If you could wave a magic wand and change one thing in the agriculture industry from a sustainability point of view, what would it be? (00:50:09)
438 episodes
Manage episode 473269116 series 2920797
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.
==========================
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.
==========================
👩🏻💻 VISIT OUR WEBSITE ht
Thoughts? Ideas? Questions? Send us a message!
Thank you to our Field Builders Circle for supporting us. Learn more here
Get your tickets here, regular tickets are sold until Feb 1st
https://2025.ai4soilhealth.eu/
https://foodhub.nl/en/opleidingen/your-path-forward-in-regenerative-food-and-agriculture/
Find out more about our Generation-Re investment syndicate:
https://gen-re.land/
Feedback, ideas, suggestions?
- Twitter @KoenvanSeijen
- Get in touch www.investinginregenerativeagriculture.com
Join our newsletter on www.eepurl.com/cxU33P!
Support the show
Thanks for listening and sharing!
Chapters
1. 358 Laimonas Noreika - From FinTech to Farms: bridging the €60B loan gap for Europe's small farms (00:00:00)
2. What should smart investors, who want to invest in reg ag and food look out for? (00:44:59)
3. What would you do if you were in charge of a 1B investment portfolio tomorrow morning? (00:47:09)
4. What do you believe is true about regenerative agriculture that others don’t believe to be true? Inspired by John Kempf (00:48:49)
5. If you could wave a magic wand and change one thing in the agriculture industry from a sustainability point of view, what would it be? (00:50:09)
438 episodes
All episodes
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1 358 Laimonas Noreika - From FinTech to Farms: bridging the €60B loan gap for Europe's small farms 53:25

1 357 Kiira Heymann - From Non-GMO to Non-ultra-processed: everyone has the right to know what’s in their food 44:54

1 356 Dimitri Tsitos - Making regenerative intensive tree crops profitable 1:29:30

1 355 Tom Hengl - We should reward the stewards of the land like we celebrate Olympic champions 1:02:51

1 354 Dan Barber - AI-Powered natural breeding: The End of GMOs, Gene Editing, and CRISPR? 1:06:22

1 353 Sébastien Crépieux - Insects, the perfect livestock to reintegrate into an arable farm 1:06:56

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1 351 Paul Clarke - Smart Machines, AI and Modeling: engineering our way out 59:37

1 350 Alice Henry - Finally real money for cover crops from sustainable aviation fuel 57:53

1 349 Joseph Rehmann - Climate-positive fish is possible and its eggs are delivered by drones 1:21:14

1 348 Angus McIntosh - Walking the talk on Farmer Angus' land in South Africa 37:07

1 347 Marcelo Salazar and Zé Porto – A forest super shake to preserve and regenerate the Amazon, the world's largest agroforestry system 1:18:40

1 346 Antonio Nobre - Why would one of the world’s leading earth scientists invest in nature-based unicorns? 1:10:04

1 345 Antonio Nobre - If nature were a bank it would have been saved already 1:06:24

1 What we learned in 2024 about ecocide, land access crisis, regenerative education, return of inspiration, chefs, machinery and brands driving change 23:26
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