The agricultural sector is complex and often characterized by unique corporate structures, which makes it difficult to assess the financial standing of farms and agricultural entrepreneurs using standard Basel criteria.
At the same time, the sector receives a significant amount of EU funding, which has become increasingly difficult to access and manage under the new CAP 2023–2027 framework.
Funding mechanisms are evolving, with a growing focus on targeted financing provided by banks and the European Investment Bank (EIB). This shift creates challenges both for agricultural businesses — which are often unfamiliar with cost reporting — and for the banking sector, which is now required to assess creditworthiness based on the income statement.
To address these challenges, the agricultural sector requires updated expertise, including:
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Accurate financial statement representation
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Understanding of agricultural economic cycles and specific contractual frameworks
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Development towards more structured and transparent corporate models
