Communiqué on Implementation Principles for the Provision of Interest and Dividend Supported Investment and Business Loans/Financing for Agricultural Production (No: 2024/15) was published in the Official Gazette and is available at the link. Below are the special conditions for agricultural machinery (tractor separate), tractors, pressurized irrigation equipment, and agricultural machinery parks.
Agricultural machinery (tractor split)
ARTICLE 19- (1) Within the scope of the decisions, credit/financing may be provided based on the test report per the Regulation on Testing and Inspection Principles of Agricultural Machinery and Agricultural Technology Tools published in the Official Gazette dated 9/10/2020 and numbered 31269. In addition, credit/financing can be provided for all agricultural mechanization tools whose loan eligibility certificates and agricultural credit certificates are still valid.
(2) For fixed systems for agricultural purposes, credit/financing can be provided based on the test report on a business basis for fixed milking facilities, fully automatic milking machines (milking robots), fixed solar energy systems, linear and center pivot irrigation systems, greenhouse heaters.
(3) For agricultural control tools and machines, credit/financing can be provided based on license by Regulation on Agricultural Control Equipment and Machinery provisions published in the Official Gazette dated 9/6/2021 and numbered 31506.
Tractor
ARTICLE 20- (1) Within the scope of the decisions, credit/financing may be provided based on the test report following the Regulation on Testing and Inspection Principles of Agricultural Machinery and Agricultural Technology Tools. In addition, loan/financing can be provided for tractors whose loan eligibility certificate and agricultural credit certificate are still valid. Among the activities of the beneficiaries to provide tractor loans/financing; It is required to have at least one of the fields of crop production or sheep, cattle breeding, and poultry production.
(2) Second-hand tractors to be purchased within the scope of loan/financing must be eight years old or younger.
(3) For new and second-hand tractor purchases within the scope of credit/financing;
a) The beneficiary is required to have at least 2 years/2 years of production registered in the Ministry’s registration system regarding the production activity for which he/she applies for loan/financing. This condition is not required for beneficiaries who register with the Ministry’s registration systems for the first time with lands and livestock enterprises under their ownership.
b) Producers using tractor loans/financing cannot be granted a new tractor loan/financing within 5 years.
Pressurized irrigation system investment
ARTICLE 21- (1) Within the scope of the decisions, the beneficiaries will be required to establish drip, subsurface drip, sprinkler or micro-sprinkler irrigation systems to distribute the water taken from the water source into the field, and technological systems for the automation of these systems (smart irrigation systems, intelligent automation systems, and similar systems). ) and mobile irrigation machines (circular moving, linear, and drum system sprinkler irrigation machines and similar) are evaluated.
(2) Loan/financing requests of the beneficiaries who use/will use pressurized irrigation systems regarding electricity supply, drilling of deep wells, deep well equipment, and transportation of water from the source to the field for pressurized irrigation systems are evaluated within this scope.
(3) Loan/financing requests for agricultural irrigation/deep well/transportation of water to the field (except for paddy production) of beneficiaries who do not use pressurized irrigation systems are not evaluated within the scope of this Communiqué.
(4) Investment loans/financing for excavations and opening of wells to supply water for pressurized irrigation systems; It is primarily used for excavations and wells opened with an exploration certificate obtained from DSI, per the principles of the Law on Groundwater No. 167, dated 16/12/1960, on lands for which permission has been obtained within the scope of the Soil Conservation and Land Use Law No. 5403, dated 3/7/2005.
(5) For each application whose loan/financing request for the project is approved, the beneficiary prepares and submits two Pressurized Irrigation System Information Forms in Annex-5. One copy of the form is sent by the Bank, Participation Bank, or TKK to the provincial/district directorate where the application is made.
(6) Under the Regulation on Testing and Inspection Principles of Agricultural Machinery and Agricultural Technology Tools, investment loans and other types of financing can be provided for irrigation machines and attachments based on the test report. In addition, credit/financing can be provided for irrigation machines and attachments whose loan eligibility certificates and agricultural credit certificates are still valid. The first paragraph of Article 30 of the Communiqué is valid for solar energy systems of farming purposes used in pressurized irrigation systems.
(7) For the beneficiaries to use credit/financing for pressurized irrigation within the scope of the decisions;
a) The current EQS document of the beneficiary,
b) By the Irrigation Project Disposition in Annex-6, prepared by authorized agricultural engineers following the Regulation on the Duties and Powers of Agricultural Engineers put into effect by the Decision of the Council of Ministers dated 18/12/1991 and numbered 91/2526, and prepared by the Ministry province/ Pressurized irrigation project approved by district directorates,
c) Type of water source; For applications with surface and underground water resources, a water use permit/allocation document to be obtained from the relevant institution, as well as a license to be obtained from DSI for groundwater use,
ç) In case the irrigation system requires the use of electricity, a document proving that the subscription has been made from the relevant electricity administration,
must present it.
agricultural machinery park
ARTICLE 22- (1) Agricultural organizations and other organizations that operate/will operate by establishing a sufficient and appropriate machinery park to carry out at least soil cultivation, sowing-planting, dismantling-maintenance, disinfection and harvesting operations to provide paid services to agricultural producers. In this context, investment loans/financing can be provided to legal entities.
(2) To create a machinery park by the above-mentioned legal entities to provide services to agricultural producers in soil processing, sowing, planting, dismantling, harvesting and similar works carried out with machines with their activities; Mechanization such as tractors, combine harvesters, other harvesting machines, meadow mowers, baler, silage machines, silage packaging machines, agricultural struggle tools and machines, plows, cultivators, threshers, seeders in sufficient and appropriate sizes and numbers for the existing potential in the place where the service is envisaged to be provided. Investment loans/financing for the purchase of vehicles are evaluated within this scope.
(3) Persons operating in the production and/or buying, selling and trading of agricultural machinery and equipment and legal entities of which these persons are partners, regardless of their shareholdings, cannot benefit from credit/financing in this context.
(4) Purchases of machinery for only a single process (e.g. only planting, only harvesting, only spraying) are not considered within this scope. On the other hand, additional purchases of agricultural organizations that have at least one or more soil cultivation, sowing-planting, dismantling-maintenance, spraying and harvesting machines for the machines required for the creation of a park or the machines in the existing park are evaluated within this scope.
(5) Within the scope of this article, credit/financing can only be provided for the purchase of new and unused agricultural mechanization vehicles.
(6) The agricultural machines for which credit/financing will be provided within the scope of this article shall be subject to test reports by the Regulation on Testing and Inspection Principles of Agricultural Machinery and Agricultural Technology Tools, and the agricultural machinery and equipment shall be licensed under the Regulation on Agricultural Control Equipment and Machinery. /financing available. In addition, loan/financing can be provided for the agricultural machinery park, whose credit eligibility certificate and agricultural credit certificate are still valid.
