Germany’s Landwirtschaftliche Rentenbank is expanding its support for agricultural businesses seeking to improve sustainability, launching a new round of funding for climate balance assessments. The program offers financial assistance for creating these assessments and covers up to €1,000 per farm for associated consulting costs.
The initiative targets primary agricultural producers and aims to help them navigate increasing demands from supply chains and consumers for demonstrable environmental performance. According to Rentenbank, over 800 farms benefited from the initial funding round, highlighting a growing willingness within the sector to embrace change.
“The strong demand underscores the willingness to change within the industry and shows that we at Rentenbank are setting the right course with our offerings,” said Nikola Steinbock, a member of Rentenbank’s board, in a statement. “A climate balance allows agricultural businesses to confidently meet the increasing requirements from the supply chain and consumers and to position themselves optimally in the market. At the same time, emissions can be reduced in a targeted and economically sensible manner – this saves valuable resources and makes an active contribution to climate protection.”
The program isn’t solely focused on assessment; Rentenbank is also incentivizing action based on the results. Farms that complete a climate balance assessment are eligible for a 0.25% interest rate bonus on certain loans. This bonus applies to loans within the “Growth” and “Sustainability” programs, as well as selected credits in the “Focus on Future Fields” area.
This dual approach – funding assessments and rewarding action – reflects Rentenbank’s commitment to supporting a resilient and competitive agricultural sector. Steinbock emphasized the importance of a strong domestic agricultural industry, particularly in ensuring strategic food security. “Our Climate Balance grant and the interest rate bonus are measures that we finance directly from our own funds – the budget for the grant alone amounts to €5 million,” she stated. “It is important to us that funding is practical, effective and uncomplicated.”
As of the end of 2025, Rentenbank had approved over 800 applications for a total grant volume of €0.8 million and facilitated loans totaling €92.5 million with the additional interest rate bonus. This demonstrates a significant level of engagement from the agricultural community.
The funding comes at a time when sustainability is increasingly central to agricultural policy and market access. Consumers and retailers are placing greater emphasis on environmentally friendly production methods, creating both challenges and opportunities for farmers. A comprehensive climate balance allows businesses to identify areas for improvement, reduce their environmental footprint, and potentially gain a competitive advantage.
Rentenbank’s program specifically supports advisory services related to creating a climate balance, including the development of an action plan for reducing emissions and improving resource efficiency. This holistic approach aims to empower farmers to make informed decisions and implement sustainable practices.
The Landwirtschaftliche Rentenbank, as highlighted in recent press releases, has seen strong growth in its promotional lines for renewable energy, agribusiness, and agriculture. In 2025, the bank raised €6.5 billion on the capital markets to refinance its promotional business, indicating a robust capacity to support these initiatives. The bank also acts on behalf of the German Federal Environment Ministry, approving grants for investments that preserve soil’s carbon storage function and biodiversity, as part of the Natural Climate Protection Action Programme.
The program’s focus on soil health, mechanical weed control, and extensive grassland management aligns with broader efforts to promote regenerative agriculture practices. These practices aim to enhance soil fertility, reduce reliance on synthetic inputs, and improve the overall resilience of agricultural ecosystems.
Looking ahead, Rentenbank plans a funding volume of approximately €11 billion in 2026, signaling a continued commitment to supporting the agricultural sector’s transition towards greater sustainability. The availability of low-interest loans for measures such as energy efficiency, emissions reduction, organic farming, and animal husbandry, as well as the climate balance grant and interest rate bonus, positions Rentenbank as a key financial partner for German farmers seeking to adapt to a changing world.
