Greek agricultural sector economic challenges

The Greek agricultural sector is facing significant economic and structural pressures. In Crete, viticulture and olive production are under threat from rising production costs, climate change, and competition from cheaper imports, such as raisins from China and Iran. Regional officials have warned that vineyards may disappear without institutional support tailored to island-specific challenges like fragmented land and high transport costs.

To address these issues, the Greek Ministry of Rural Development and Food and the Hellenic Development Bank (HDB) have launched the Agricultural Entrepreneurship Fund. This initiative utilizes €160 million in public funds from the 2023-2027 CAP Strategic Plan to mobilize approximately €365 million in total credit through the banking system.

The first of three financial tools, the Agrifood Sector Guarantee Fund, is being activated with €80 million in public resources to facilitate €250 million in loans. These include investment loans ranging from €25,000 to €3.5 million with terms of 2 to 15 years, and working capital loans from €25,000 to €500,000 for up to 5 years. The fund offers a 70% guarantee on each loan and interest rate subsidies of up to 4% for up to four years, alongside advisory support.

Other planned tools include a Small Agricultural Entrepreneurship Loans II fund, targeting portfolios of €95 million for smaller holdings with loans between €10,000 and €50,000, and a specific tool for young farmers under 40. Applications for these funds are expected to open in autumn 2026, following the selection of participating banks. The program aims to support the entire agrifood chain, from primary producers to processors, with an emphasis on attracting new entrants to the sector. The eligibility period for the program extends until September 30, 2029.