The purchase of land is a major stumbling block for many agricultural installation projects. Fortunately, there are quite a few land portage schemes available today. When they are supported by a bank, they allow you to save a great deal of time in implementing your project and ensure the overall consistency of your financing plan. Starterre Agri: an innovative financing solution backed by a traditional bank!
Crédit Mutuel Océan, which operates in the Vendée, Deux-Sèvres and Charente-Maritime departments, has set up a land portage scheme, Starterre Agri, mainly dedicated to the installation of young farmers.
This scheme, which is reserved for Crédit Mutuel Océan customers, can also be used for land purchase projects by existing farmers.
In practice, an SCI, a subsidiary of Crédit Mutuel Océan, buys the land from the owner. The price of the land is validated by an expert appraisal from the SAFER to avoid any speculative drift.
The land is then rented to the project owner under a non-renewable 25-year lease.
The amount of the rent is also defined by an expert report and obviously follows the rules for indexing farm rents.
From the fifth year, when part of the installation loans expire, the young farmer has the option of buying back the land. 
The purchase price of the land is determined by an expert appraisal from the SAFER. Any capital gain is reduced according to the number of years of ownership:
50% after the 5th year
30% between 6 and 10 years
20% between 11 and 15 years
For example, the land is purchased in 2022 at €5,000 per hectare and is re-rented at €150/ha
In 2027, the project holder wishes to buy it back and the market value is now €6,000 per hectare, i.e. a capital gain of €1,000.
The young farmer therefore benefits from a 50% reduction on the capital gain, which allows him to buy the land for €5,500 per hectare.
This reduction of €500 represents the equivalent of more than three years' rent, which is a very important advantage for the farmer.
Another advantage of the scheme lies in the global vision of the project to be financed. Crédit Mutuel Océan will be involved both in the overall financing plan (building, equipment, stocks, etc.) and in the carrying of the land. This global vision will enable us to adjust the financing conditions as well as possible, particularly the duration of the loans.
Last but not least, this scheme is carried out using Crédit Mutuel Océan's own funds. There are therefore no investors looking for a financial return on their investment.
Starterre Agri is currently reserved for non-built agricultural land. Unfortunately, it does not concern vineyards or farm buildings.
Since the launch of the Starterre Agri scheme, Crédit Mutuel Océan has already supported 13 projects for a total surface area of 384ha and several young farmers will be able to benefit from a purchase with a cap on capital gains in 2022.
