In Katund i Ri, a farming community near the western city of Durrës, eight farmers have pooled their land, resources and expertise to establish one of the country’s newest agricultural cooperation societies, cultivating around 260 hectares of farmland.

The initiative has been driven in part by Albania’s 2026 National Agricultural Support Scheme, which, for the first time, places Agricultural Cooperation Societies (SHBB) at the center of its funding strategy by offering full financial coverage for eligible support measures.

“Our cooperative was recently established, encouraged by the opportunities provided through the national support scheme and agricultural subsidies,” said Fori Balla, head of the cooperative specializing in cereal production. “Together, we cultivate wheat, maize, beans and forage crops across approximately 260 hectares.”

“By operating collectively, farmers can share machinery, reduce production costs and strengthen their bargaining power in the marketplace,” Balla told Albanian Telegraphic Agency (ATA). The cooperative model is also expected to improve access to government assistance and other financing instruments.

According to the Ministry of Agriculture and Rural Development, Albania currently has 84 registered agricultural cooperation societies. Twenty-six were established with municipal support, while 58 were created through farmers’ own initiatives.

The model is gradually expanding across the country, from olive-growing regions in Berat and Vlora to onion farms in Korça, walnut producers in Kolonja and medicinal plant cultivators in the northern district of Malësia e Madhe.

Agricultural experts say organized producer groups are better positioned to secure long-term sales contracts, invest in modern technology and access larger markets. They estimate that cooperative farming can reduce production losses by up to 25%, contributing to higher incomes for rural households.

The support scheme also includes direct aid for livestock farmers. In Katund i Ri, cattle breeder Endrit Pisha said government subsidies for his dairy herd have helped reduce operating costs and support plans for expansion.

“I have benefited from state support for several years,” Pisha said. “The subsidies have helped me manage expenses and plan the growth of my farm.”

Under the 2026 scheme, farmers with between five and 50 cows or heifers are eligible for support of 12,000 leks per animal, while producer groups and agricultural cooperatives qualify for full funding.

Agricultural advisers have been deployed across rural areas to assist farmers with applications, while interest in the program has risen significantly through local agricultural service centers known as Agropika.

As Albania advances toward European Union membership and faces increasing competition in agricultural markets, policymakers view cooperation societies as an important tool for overcoming the fragmentation of farmland and improving sector competitiveness.

For many farmers, cooperation is increasingly seen not only as a pathway to subsidies but as a long-term investment in the future of their farms and Albania’s agricultural sector as a whole.

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Salla said support for agriculture remains a strategic priority for the government and that the 2026 package offers an integrated approach aimed at boosting production, formalising markets and strengthening farmers’ commercial capacity.

“This package delivers the highest budget ever for farmers and agribusinesses, addresses the sector’s priority needs and brings it closer to European Union standards,” he said.

The National Support Scheme includes direct payments to farmers and targeted investments in priority crop and livestock sectors. The Minister said the programme was drafted following 23 public consultations across Albania, with farmers’ proposals to be reflected in the final draft pending approval by the cabinet.

A key measure is a 10% compensation on the value of sales invoices for agricultural and livestock products. The scheme applies to invoices issued by collection points, processors and agritourism businesses.

Farmers will be able to submit self-invoices every six months to regional tax offices and receive reimbursement directly into their bank accounts, in what Salla described as a simplified and transparent procedure. He urged farmers to formalize their activity and obtain tax identification numbers in order to benefit.

To improve access to finance, the government has also established a 3 billion leks guarantee fund covering up to 70% of collateral requirements for agricultural loans.

The scheme foresees a 2% interest rate, loans of up to 25 million leks per beneficiary, repayment periods of three to five years and a grace period of at least 12 months.

Salla also said Albania plans to launch the EU-backed IPARD III rural development programme in the first half of 2026, with a total envelope of 147 million euros, aimed at supporting sustainable rural development and alignment with EU standards.

He said the 2026 package represents a concrete commitment to farmers and rural areas, adding that the government would continue investing in a stronger, more formalised and competitive agricultural sector.

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Agriculture Minister Anila Denaj said on Monday that farmers operating agricultural or livestock farms can benefit from grants covering up to 50% of their investment costs, based on tax invoices, capped at 5 million lek (approx. EUR 47,000) per beneficiary.

According to Denaj, the program is designed to reduce production costs and time, improve efficiency and product quality, and enhance the competitiveness of Albanian farmers in both domestic and international markets.

In addition to grants, the scheme allows for the combination of financing instruments, including low-interest loans at just 2% and a sovereign guarantee covering up to 70% of collateral requirements.

“With a 50% grant, a soft loan at 2%, and sovereign guarantee support, farmers can secure full financing for their planned investments,” Denaj said.

Applications are open until September 30, 2025, giving farmers ample time to prepare the necessary documentation and investment plans.

The scheme includes nine separate support measures targeting agricultural and livestock sector development.

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Fasli Bajrami, a farmer with over 35 years of experience, manages around 0.7 hectares of modern greenhouses growing a variety of vegetables, including lettuce, strawberries, tomatoes, cucumbers, peppers, and eggplants—all grown locally and sold under the “Made in Albania” label.

Bajrami’s farm operates as a family business, with all members involved in daily production and processing. The operation provides stable income and contributes to the local economy, Agriculture Minister said.

Denaj stated that the farm benefited from the National Investment Scheme through a combined financing package: a 50% grant and a low-interest loan at 2%, supported by a sovereign guarantee covering up to 70% of the collateral.

“This financing model has enabled the expansion and modernization of farming activities, increasing both yield and quality,” Denaj said.

The scheme is part of the government’s broader efforts to promote sustainable agriculture and rural revitalization. Agriculture Minister said Bajrami’s case illustrates how targeted state support, combined with experience and dedication, can deliver tangible and lasting results.

“Across the country, smallholder farmers are contributing to food security and the national economy, while reaffirming agriculture’s long-term potential as a strategic sector,” she added.

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