Introduction to the 2024 Agricultural Innovation Fund
The 2024 Agricultural Innovation Fund was established to support the growth of SMEs in agriculture, fishing, and aquaculture through the adoption of advanced technologies and sustainable solutions. This financial tool aims to increase the productivity and sustainability of Italian agricultural enterprises, with a special focus on optimizing resource management, such as water and energy.
The fund provides a total allocation of 100 million euros for 2024, divided into 70 million for agricultural and agri-mechanical SMEs and 30 million for SMEs with operational headquarters in areas affected by the 2023 floods. These resources may be increased with any residual funds from 2023.
Requirements for Accessing the Grants
The grants are aimed at micro, small, and medium-sized enterprises (SMEs) operating in agriculture, fisheries, and agri-mechanics. To benefit from the grants, companies must meet the following requirements:
- Be registered as active in the business register with the qualification of “agricultural enterprise,” “fishing enterprise,” or “agri-mechanical enterprise.”
- Have been active for at least two years by the date of application for each specific activity connected to the requested investments.
- Have an operational headquarters in Italy and qualify as an SME according to EU regulations.
- Not be in economic distress or subject to previous ISMEA grants revocation.
Companies that do not meet these requirements are excluded, including those with bank debts, protests, foreclosures, or pending issues with ISMEA for insurance and financial services. Additionally, fishing enterprises with violations in the past 12 months are excluded.
Eligible Costs for the Grants
The Innovation Fund covers specific costs related to the acquisition of goods and services for the digital transformation and environmental sustainability of businesses. The amount of eligible costs for each application must be between 70,000 euros (or 10,000 euros for fishing SMEs) and 500,000 euros.
Eligible costs include only newly manufactured goods purchased without leasing, excluding investments necessary to comply with EU regulations. For agricultural investments, eligible costs may include the purchase of machinery, water management equipment, energy efficiency solutions, technology for reducing chemical use, and tools to improve natural resource management.
Grants Available and Contribution Calculation
For technological innovation investments, agricultural, fishing, and agri-mechanical SMEs can receive non-repayable grants with graduated percentages based on the investment amount. Additionally, agricultural and fishing SMEs have access to ISMEA guarantees with a reduction in the cost of the guarantee fee.
Young agricultural entrepreneurs can receive grants of up to 80% of the eligible amount, while for non-youth SMEs, the maximum is 65%, and for other categories, it is 50%. For agri-mechanical SMEs, the maximum contribution is 200,000 euros, while for agricultural and fishing SMEs, the maximum total contribution cannot exceed 95% of the eligible cost.
Grant Application Process
Access to grants is managed through a rolling assessment process, with applications reviewed in chronological order of submission. The application phases are as follows:
- Registration on the ISMEA portal: The applicant must register on the ISMEA portal to access the forms.
- Application compilation and pre-validation: During the pre-validation period, the applicant compiles and pre-validates the application. This phase provides a pre-validation code, required for submission.
- Application submission: Within the established period, the pre-validated application can be officially submitted with all required documents attached.
How to Submit the Grant Application
To complete the application, various documents must be provided that prove the company’s eligibility for the grants. These include:
- Application form: Completed and signed by the owner or legal representative.
- Anti-mafia self-certification: Required for grants over 150,000 euros, completed by the owner and any other shareholders or managers.
- Expense quotes: Three quotes are required for each eligible item, issued no later than ninety days before the application, and provided by independent suppliers. The quotes must certify the compliance of the item with the characteristics required for the grant.
In the case of innovative goods for which three comparable quotes are not available, a technical report prepared by a professional justifying the uniqueness of the item and the choice of supplier is accepted.
Review of Grant Applications
The review of grant applications follows the chronological order of submission. ISMEA verifies the applicant's subjective and objective requirements and the eligibility of the costs listed in the application. During the review, clarifications or additional documentation may be requested. The applicant must respond within the assigned deadlines, as a failure to respond will lead to exclusion from the grant.
ISMEA may use supplementary information from public entities or Chambers of Commerce, and the final verification outcome is at the Institute’s discretion.
Result of the Review and Communication
At the end of the review, within thirty days from the application submission or receipt of any additional documentation, ISMEA communicates the outcome to the applicant via certified email. In case of a positive outcome, the communication includes the assignment of a Unique Project Code (CUP) and indicates the documentation to be provided in the following phases, such as order confirmation and grant disbursement request.
If anti-mafia checks are required and such documents are not available within thirty days, ISMEA may still temporarily approve the grant under a resolutory condition. This means that if subsequent anti-mafia verification is negative, the grant will be revoked.
Order Confirmation Phase
After receiving the grant, the beneficiary must confirm the order of the subsidized goods within sixty days. This phase includes submitting mandatory documents, such as:
- Deposit invoice: Attesting to the payment of the deposit to the supplier.
- Payment transfer: The advance must be paid from the beneficiary's account.
- Purchase order confirmation: Signed and complete in all parts.
At this point, the beneficiary may submit a sworn appraisal from a technician certifying the compliance of the item with the technical specifications indicated in the decree and the price’s congruity. If the appraisal is not provided at this stage, it can be submitted during the disbursement request phase; however, ISMEA will still conduct a complete check before authorizing payment.
Forfeiture of Grants
Failure to meet deadlines or submit complete documentation may result in forfeiture of the grants. Specifically, if the beneficiary does not complete the order confirmation within the established terms or omits essential documents, ISMEA automatically initiates the forfeiture procedure. Forfeiture of grants is governed by Article 12 of the Decree and prevents the beneficiary from receiving the awarded funds.
Disbursement of Grants
To obtain the grants disbursement, the beneficiary must access the ISMEA portal within twelve months of the grant award and provide a self-certification attesting to the retention of requirements. Furthermore, the following documents must be submitted for each subsidized item:
- Paid invoice: Must attest to the full payment of the item, indicating that it is subsidized under art. 1 paragraph 428 of Law no. 197/2022.
- Payment receipt: The receipt must specify that the purchased item is new.
- Insurance policies: Must cover risks such as theft, fire, and explosion, with a lien in favor of ISMEA for at least five years.
- Valid DURC: If there are no INPS or INAIL positions, the owner must submit an exemption declaration issued by the owner or legal representative.
The disbursement request must include a sworn appraisal if it was not provided during the order confirmation phase. ISMEA will verify the documents before authorizing the grant payment.
Disbursement Request Review
Once the disbursement request is received, ISMEA conducts a full review to verify the match between the approved item and the one purchased, as well as the validity of the DURC and the compliance of insurance policies. If questions arise or additional documentation is needed during the review, the beneficiary has ten days to respond to clarification requests.
If the outcome of the review is positive, the grant disbursement is made in a single payment directly to the bank account indicated at the time of the application. If the beneficiary has requested payment to the supplier, ISMEA will send the amount to the vendor’s bank account.
Further Provisions and Obligations
Grant beneficiaries must maintain eligibility conditions for the entire duration of the investment. Declarations made during the application process are subject to criminal liability in the event of falsehoods. Article 76 of Presidential Decree 445/2000 provides for penalties for those who provide false statements and also entails forfeiture of any obtained grants. ISMEA reserves the right to revoke the grant at any time if it detects non-compliance.
Furthermore, beneficiaries must ensure traceability of financial flows related to the grants. All payment transactions must be made through bank accounts held by the beneficiary company and documented with bank transfers or traceable payment methods.
Documentation Retention Requirements
The beneficiary must retain all documentation related to the grants for at least five years. During this period, ISMEA may conduct checks to verify the correct implementation of the project and the actual use of the funds. It is therefore essential to keep available all fiscal documents and anti-mafia, DURC, and insurance certifications.
Additionally, ISMEA reserves the right to revoke the grant and request reimbursement of disbursed amounts if any violations of the grant conditions are found during inspections.
Conclusion
The 2024 Agricultural Innovation Fund represents an important opportunity for Italian SMEs in the agricultural, fishing, and agri-mechanical sectors, allowing them to invest in advanced and sustainable technologies to increase productivity and reduce environmental impact. By carefully following the operational instructions, companies can benefit from financial support.
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FAQ
1. Which companies can access the Agricultural Innovation Fund?
The grants are reserved for Italian SMEs in the agricultural, fishing, and agri-mechanical sectors that have been active for at least two years and are registered as agricultural, fishing, or agri-mechanical enterprises.
2. What is the maximum non-repayable grant amount?
For agricultural and fishing SMEs, the maximum grant covers up to 95% of eligible costs, while for agri-mechanical SMEs, the maximum limit is 200,000 euros.
3. Is a valid DURC required to access the grants?
Yes, a valid DURC (Single Contribution Compliance Document) is required. For businesses without INPS or INAIL positions, the owner must submit an exemption declaration issued by the company’s owner or legal representative.
4. What documents are required for order confirmation?
Order confirmation requires submitting a deposit invoice, a payment transfer, and a signed purchase order confirmation.
5. How long must documentation related to the grants be kept?
Beneficiaries must retain all documentation for at least five years, during which ISMEA may conduct checks on the use of funds.