Investment aid – processing and marketing of agricultural products
Last update
If your company has an investment, modernisation, innovation or development project concerning the processing and marketing of agricultural products, it may be eligible for investment aid.
Who is concerned
Eligible businesses
Any company with an investment project of at least EUR 75,000.
Agricultural products purchased from suppliers must represent more than 50% of the volume of processed or marketed agricultural products.
Eligible investments
To be eligible, your company's investments must meet one of the following objectives:
- increase the processing rate of local production in order to:
- guarantee better incomes for producers;
- improve market opportunities; or
- strengthen the adaptation of supply to changing demand;
- improve the efficiency of production chains in terms of resource use, greenhouse gas emissions and agricultural product waste;
- job protection and preservation of expertise.
Companies cannot claim aid:
- for investments related to the production of biofuels from food crops;
- for investments used to bring existing installations into compliance with European Union standards;
- for replacement investments;
- for the construction and fitting out of retail premises and facilities;
- for the purchase of land;
- for the purchase of used goods;
- for the purchase of vehicles;
- if it sells more than 50% of its production directly to consumers;
- if it uses only agricultural products that have already undergone processing.
Prerequisites
Setting up a business eSpace
If you wish to apply for investment aid via MyGuichet.lu, you must have a business eSpace.
How to create a business eSpace on MyGuichet.lu
There are 2 possible scenarios:
- You are a new user of MyGuichet.lu. You must:
- first register on MyGuichet.lu; and
- then create a business eSpace.
- You already have a private eSpace on MyGuichet.lu. You can directly create a business eSpace without having to register again.
Further information as well as tutorials in relation with the business eSpace are available in our dedicated help page.
Deadlines
You must submit your aid application before making the investment, i.e. before acquiring the property or starting construction work.
The selection of investments and the approval of aid applications take place twice a year. The deadline for submitting aid applications is the last day of May and November.
You must submit your request for payment of the aid within 3 years of the decision granting you the aid.
How to proceed
Submitting the application for aid
You can submit your application for aid:
- online via MyGuichet.lu from your business eSpace. This procedure requires a LuxTrust product or an electronic identity card (eID).
- by email to aide.transformation@ma.etat.lu. Your email must contain the complete application file dated and signed by a person authorised to represent the company, accompanied by the relevant supporting documents.
You can download a template for the aid application (see 'Online services and forms').
Your application must include the following:
- information about the applicant company, including an organisational chart of the group;
- data on main activities and employment;
- data on the raw materials used, production tools and market opportunities;
- detailed information on the investment project;
- information on the cost of the project, the financing plan and the profitability of the investment;
- information relating to the selection criteria.
The ministry can request any other useful information required to fully understand the project.
Maximum amount of financial aid
The aid rate is 25% of the eligible investment cost.
This rate is increased by 5%:
- for farmers' cooperatives and companies that practise a policy of fair prices for producers of primary agricultural products;
- for investments made in the context of a carbon emission reduction strategy.
Rate increases can be accumulated.
Investments are eligible up to a maximum of:
- EUR 16,700,000 for micro, and small and medium-sized enterprises;
- EUR 31,500,000 for other companies.
These ceilings apply to the period between 1 January 2021 and 31 December 2027.
Selection of projects to be funded on the basis of the available budget
The selection of investments and the approval of aid applications take place twice a year. The deadline for submitting aid applications is the last day of May and November.
For each selection, the budget allocation corresponds to the amount obtained by dividing the total budget available for the entire period by the number of selections to be made until 31 December 2027, plus, if applicable, the unallocated balance from the previous selection. The amount is communicated to interested parties by publication on the website of the Ministry of Agriculture one month before the closing date for the next selection.
Applications for aid are classified using a system of selection criteria. The selection criteria are as follows:
- creation of activity;
- job creation;
- environmental protection;
- protection of workers' health and safety;
- animal welfare;
- economic diversification; and
- innovative nature of the activity.
A maximum of 5 points can be awarded for each of the above criteria.
In the event that the budget available for a given selection is insufficient to cover all applications for aid that meet the conditions laid down by law for the allocation of aid, applications from applicants who are not ranked in the order of merit will be rejected. Rejected applications for aid may be renewed once.
Payment of the aid
To receive payment of the capital aid, you must submit a request for payment (see 'Online services and forms').
You may obtain advance payments (upon presentation of invoices for work performed) under the following conditions:
- an advance payment if the eligible cost of the investment exceeds EUR 300,000;
- two advance payments if the eligible cost of the investment exceeds EUR 500,000;
- three advance payments if the eligible cost of the investment exceeds EUR 1,000,000;
The total amount of advance payments may not exceed 80% of the maximum amount of aid.
You must submit your request for payment of the aid within 3 years of the decision granting the aid.
You must request the payment of the aid:
- online via MyGuichet.lu with authentication using a LuxTrust product or an electronic identity card (eID), if there are 10 or fewer invoices to declare;
- by submitting two sets of paper documents (original and copy) to the relevant department of the Ministry of Agriculture, Viticulture and Rural Development if there are more than 10 invoices to declare.
Online services and forms
Online services
Downloadable forms
Who to contact
-
Ministry of Agriculture, Food and Viticulture Financial Aid Department 'processing and marketing'
- Address:
-
1, rue de la Congrégation
L-1352
Luxembourg
Luxembourg
L-2913 Luxembourg
- Phone:
- (+352) 247 72 516
- Phone:
- (+352) 247 82 519
- Email address:
- aide.transformation@ma.etat.lu
- Website:
- https://agriculture.public.lu/
Related procedures and links
Links
Further information
auf dem Landwirtschaftsportal
