Several bonuses are available for young farmers in 2024, some already operational and others new, in the process of being activated. These are incentives, funding and concessions aimed at young people who want to start working in the agricultural sector or develop their company projecting it into the future
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In this guide, we explain in a clear and detailed way what aid the Italian State offers to young people who wish to start a business in the agricultural sector and what bonuses there are for agriculture and direct farmers who already work in the field. We also provide useful information on how to obtain funding, how to apply for 2024 young farmers bonuses and any other type of help.
What Are the 2024 Young Farmers Bonuses
In 2024, many bonuses are active or being activated for young farmers or aspiring farmers. Thanks to law no. 36 of 15 March 2024, published in the Official Gazette no. 72 of 26 March 2024, young people – especially under 40 – can request incentives, aid and concessions to start a business in the agricultural sector or to
better manage it.
Law no. 36 of 15 March 2024 defines a “youth agricultural enterprise” and “young agricultural entrepreneur” as commercial entities and individual entrepreneurs that operate exclusively in the agricultural sector, as established by article 2135 of the Civil Code. And it is precisely the latter that receive the benefits, which are added to other measures financed by the 2024 budget law and by European Union funds
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Let’s find out together what are the young farmers bonuses active or being activated in 2024.
1) Concessions for New Agricultural Enterprises
The Parliament, with law no. 36 of 15 March 2024, has recognized youth agricultural enterprises and young agricultural entrepreneurs who undertake a business activity the possibility of opting for a subsidized tax regime consisting in the payment of a tax in lieu of income taxes, related add-ons and the regional tax on productive activities (IRAP), equal to 12.5% of the tax base consisting of the business income produced during the tax period.
The regime applies only to agricultural activities other than those for which income is determined on a flat rate basis, or in accordance with article 32 of the TUIR, which governs agricultural income, and can be maintained for the tax period in which the activity started and for the following four tax periods.
Facilitation Requirements
- Not having carried out another agricultural activity in the previous three years.
- Be in compliance with the social security, insurance and administrative obligations established by law.
- Do not request such concessions for the transfer of existing farms to young agricultural entrepreneurs or to youth agricultural businesses.
Specific Requirements
- Sole Proprietorship: The farmer must own the business and be between 18 and 40 years old.
- Partnerships or cooperatives: At least half of the members must be between 18 and 40 years old.
- Capital companies: Agricultural entrepreneurs who own at least half of the share capital or who constitute at least half of the members of the governing bodies must be between 18 and 40 years old.
This measure is in the process of being activated and will be operational once the implementing decree has been published.
2) Young Farmers Training Tax Credit
Law no. 36 of 15 March 2024 also established a tax credit for expenses incurred for participation in training courses. Young agricultural entrepreneurs between the ages of 18 and 40, who started their business on January 1, 2021, can benefit from a tax credit equal to 80% of the documented expenses incurred in 2024, up to a maximum of 2,500 euros per year, for participation in training courses related to agricultural business management. This bonus can be used exclusively in compensation through the F24 model, within the second tax period following the one in which the expenses were incurred
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3) Concessions for Expanding Cultivated Areas
Law no. 36 of 15 March 2024 introduced tax relief measures to encourage the expansion of cultivated areas. Starting from January 1, 2024, young agricultural entrepreneurs under 40 qualified as direct growers or professional agricultural entrepreneurs and enrolled in the related social security management, in the case of the purchase or exchange of agricultural land and related appurtenances, must pay registration, mortgage and cadastral taxes only for 60% of the ordinary or reduced rates provided for by current legislation. This benefit is already operational
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4) ISMEA Loans for the Agricultural Sector
The 2024 budget law established that the Institute of Services for the Agricultural Food Market (ISMEA) is authorized to grant foreign exchange loans to small and medium-sized agricultural enterprises active in the agricultural and fruit and vegetable sector. The measure also applies in the case of young agricultural entrepreneurs. These loans have a maximum amount equal to 50% of the revenues recorded by the applicant in 2022, with a maximum limit of 30,000 euros. The repayment will begin 27 months after the loan is disbursed and may extend up to a maximum of 5 years. There is a subsidized rate with a reduction up to zero of the interest due, within the limits of the capacity of the “de minimis” aid of each beneficiary
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5) Earth Generation
Generazione Terra covers 100% of the purchase price of land by young people not older than 35 or 41 years (as appropriate). It is aimed at those who intend to expand the area of their farm or to those who want to start a business initiative in agriculture, as head of a company. Managed by ISMEA, it provides funding of up to 500,000 euros, if it is requested by qualified young startups, or 1.5 million euros, in the case of young agricultural entrepreneurs and young startups with
experience.
6) Grow in the South
Another opportunity for youth entrepreneurship, including agriculture, also valid in 2024, is the Cresci al Sud Fund. This fund finances projects for the development and dimensional growth of SMEs in the South, also through acquisitions and aggregations. The objective of this fund is to support the growth and competitiveness of SMEs in Southern Italy
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7) PAC question
By 30 August 2024, unless extended, farmers can submit a single application for aid and funding under the Common Agricultural Policy (CAP) 2023-2027. This is direct aid to active farmers and to new ones, including young people, to support rural activity in various areas. The single CAP application is a simplified application that farmers can submit to access the contributions of the Common Agricultural Policy. This’ unified ‘demand may include a request for access to multiple interventions, including development finance, direct payments, and support measures
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