EU financing can help Maltese Farmers buy land to secure local food supply: Peter Agius in meeting with European Investment Bank

MEP Peter Agius met this week with representatives from the European Investment Bank (EIB) in a bid to explore how EU financing can help Maltese and Gozitan farmers purchase agricultural land.

During the meeting, the EIB presented MEP Peter Agius with its new agriculture financing programme — a €3 billion fund launched last December — which is already supporting farming projects in Mediterranean countries such as Italy, Spain, and Portugal. The EIB schemes aim to support investment in farming operations in collaboration with local banks to offer favourable financing terms for a wide range of investments covering land ownership.

Speaking after the meeting, MEP Agius stressed the urgent need for financial instruments tailored to Malta’s unique agricultural challenges:

“Farmland prices in Malta have gone up 10 times over the last years. Young farmers and farmers wanting to grow their operations are facing prices of 60,000 to 100,000 euros for a tumolo of land. Compare this to prices of 3000 euros for the same size of land in mainland Europe. Maltese farmers need direct help to buy land to compete in the single market. This is after all in the public interest to secure food security in Malta. At the current rate, foreign imported products now represent up to 70% of the local fresh food market. We are risking a situation of serious food insecurity in case of border emergencies and importation issues such as those we faced with COVID-19.’’

“The EIB programme can be a real opportunity for Malta,” Agius said. “Access to land has become a huge barrier for Maltese farming Europe now has the tools to help us tackle it. These funds can be tailored to directly support farmers who want to invest in our collective future and contribute to stronger local food production.”

Reacting to the outcome of the meeting, Nationalist Party Shadow Minister for Agriculture Toni Bezzina said:

“Financial assistance from the European Union to facilitate the acquisition of agricultural land would be instrumental in strengthening and revitalising the agricultural sector in Malta and Gozo, which in recent years has seen a significant decline in activity.

This scheme by the European Investment Bank marks a concrete first step towards a sustainable agricultural policy that looks to the future — giving young farmers the tools they need to take up agriculture as their main profession in Malta.”

MEP Peter Agius highlighted the importance of an intervention to help farmers acquire land as the agricultural sector in Malta finds it hard to compete with the economies of scale in mainland Europe and other international markets. The average size of a farm in Malta is less than one hectare whereas in Europe an average farm is over 20 hectares. ‘We must find ways how to empower Maltese farmers to compete. One way of doing this is to help them grow bigger to face the competition. Land access is key to this equation.’’ said MEP Agius who is also a Member of the European Parliament Committee for Agriculture.

MEP Peter Agius concluded with a direct appeal to government and local banks: ‘We can tap into millions of loans from Europe to help food production in Malta. The success of this scheme depends on your input. Let us work together to make it a story of Maltese success in Europe. I will continue working with national stakeholders and EU institutions to ensure that Maltese farmers can benefit from these opportunities without delay.’’