Agricultural Leasing Rises in Bulgaria as Farmers Secure More Land
Elana Agrocredit Reports Annual Growth in Land Purchase Financing for May
June 19 (SeeNews) – Bulgarian agricultural leasing firm Elana Agrocredit [BUL:EAC] announced it financed farmland acquisitions worth approximately 418,168 levs ($245,288 / 213,815 euro) in May 2025, marking an increase from 336,178 levs recorded in the same month of 2024.
According to the company’s regular activity report released on Wednesday, 26.8 hectares of agricultural land were financed last month, more than doubling the 12.5 hectares financed in May 2024.
However, on a month-on-month basis, the total value of deals fell from 628,084 levs in April, while the financed land area decreased from 30.7 hectares.
Elana Agrocredit finalized seven land purchase financing deals in May, up from four in May 2024, but down from ten completed in April.
Shares in Elana Agrocredit last changed hands on June 18, closing at 1.06 levs on the Bulgarian Stock Exchange.
(1 euro = 1.95583 levs)
Frequently Asked Questions (FAQs) and Concepts
What is agricultural leasing?
Agricultural leasing is a financing model where a company, like Elana Agrocredit, provides funds to farmers or agribusinesses to acquire land or equipment, which is repaid over time. This allows small and mid-sized farmers to expand operations without upfront capital. It’s especially common in countries with fragmented land ownership like Bulgaria. Leasing is often used as an alternative to traditional agricultural loans.
Who is Elana Agrocredit?
Elana Agrocredit is a Bulgarian financial leasing company specializing in agricultural land and equipment financing. It offers long-term leasing solutions, helping farmers acquire land while repaying gradually. It plays a key role in Bulgaria’s agricultural investment environment. The company is publicly traded on the Bulgarian Stock Exchange under the symbol BUL:EAC.
Why is agricultural land financing important in 2025?
With rising food security concerns and climate change impacts, land access is critical for sustainable farming. In 2025, many EU countries, including Bulgaria, are focusing on rural development. Financing helps young and small-scale farmers buy or lease land, ensuring long-term productivity and local food supply. It also ties into broader EU agricultural policy reforms.
How is land value affecting agricultural credit?
Increased demand for farmland, especially in fertile or EU-subsidized areas, is pushing up prices in 2025. This affects how much financing is needed and the terms offered by lenders. Companies like Elana monitor land value trends closely. Fluctuating prices may either stimulate more deals or deter borrowers depending on risk and affordability.
What is clean financing in agriculture?
Clean financing refers to funding that supports environmentally sustainable practices. In agriculture, this may involve financing organic farms, no-till farming, or renewable energy for irrigation. Although Elana Agrocredit focuses mainly on land, 2025 has seen a rise in green finance initiatives in the EU, encouraging companies to include ESG (Environmental, Social, Governance) criteria in credit policies.
Why did deal values drop month-on-month in May 2025?
Although year-on-year data showed growth, May’s financing value fell compared to April. This may be due to seasonal land sale patterns, fewer large plots available, or changing interest rates. Some experts also cite EU subsidy timelines, which influence when farmers prefer to buy land. It could be a short-term fluctuation, not a downturn.
What’s the impact of EU agricultural policy changes in 2025?
The European Union’s Common Agricultural Policy (CAP) reforms effective in 2025 prioritize small-scale farmers, digitalization, and climate-resilient practices. This has increased demand for land among eligible farmers. Access to financing is crucial to meet new environmental conditions tied to subsidies. Leasing firms benefit from this heightened activity.
How does land financing affect food security?
Improved access to agricultural land enables more productive and sustainable food production. In 2025, global attention on food supply chains post-COVID and amid climate concerns has renewed interest in domestic farming. Financing allows farmers to modernize and expand, playing a role in ensuring stable food prices and availability.
Why is investor interest in agricultural leasing growing in 2025?
Amid global market uncertainty, farmland is considered a relatively stable asset. Companies like Elana Agrocredit are attractive to investors looking for low-risk, inflation-hedged opportunities. With steady demand for agricultural land and EU support mechanisms, leasing companies are seeing increased trading interest on regional exchanges like Sofia’s.
What does financing per hectare tell us?
Financing per hectare shows how much capital is being invested for each unit of land. Comparing monthly or yearly rates helps assess trends in land value, investor confidence, and agricultural activity. In May 2025, more hectares were financed than in May 2024, indicating either lower prices per hectare or more efficient deal structuring.
