The Vaud Canton’s legislative body approved nearly $60 million in funding Tuesday to support agricultural and viticultural improvements over the next four years. The move underscores the region’s commitment to bolstering its rural economy and integrating sustainability into land management practices.
The Grand Conseil approved a credit framework of 58.5 million Swiss francs (approximately $64.5 million USD) with 120 votes in favor, one against, and five abstentions. The funds will be allocated to land improvement subsidies, an IT project, and a full-time position, according to officials.
Land improvements have been a key component of rural development in the canton for over a century, providing an organizational framework for managing the financial and logistical aspects of public and private projects aimed at enhancing land value.
These projects encompass a wide range of initiatives, including economic development hubs, housing construction, public works, rural road maintenance, natural disaster protection, and agricultural and communal planning, the Council of State stated. Viticulturists were recently included in the scope of these improvements with the previous credit framework (2023-2025).
Growing Investment
The Office of Agricultural Credit (Prométerre) handles the review of applications related to rural buildings, alpine chalets, vineyard walls, and agricultural installations. Final decisions and credit management remain with the Directorate-General for Agriculture and Viticulture (DGAV).
The three-year credit framework is designed to anticipate increasing infrastructure needs, particularly in areas like agricultural road maintenance, water management, and modernizations to reduce environmental impact.
The funding for these land improvements has steadily increased in recent years, growing from 22 to 24, then 30 to 40, and now reaching nearly 60 million francs.
Additional Funds for Rural Investment
In the same session, the Grand Conseil also approved a supplementary allocation of 20 million francs (approximately $22 million USD) to the Rural Investment Fund (FIR). Deputies opted for an “urgent” disbursement of two 10 million franc installments in 2026 and 2027, rather than the government’s proposed four annual installments of 5 million francs between 2026, and 2029.
The FIR provides financial support to Vaud farmers during critical stages of their operations. The additional funding will focus on supporting farm succession, modernizing farm structures, and facilitating the sector’s transition towards sustainability.
The fund assists with farm takeovers – including those outside of family succession – the acquisition of agricultural land and buildings, and the construction or renovation of infrastructure that meets environmental standards and animal welfare requirements. It also supports community-based projects, such as cheese factories, wineries, and collective stores, which promote local products and strengthen regional supply chains.
Established in 1976-77, the FIR operates as a loan system, with the state acting as a bank providing 120 million francs (initial endowment) to the fund, which then lends it to agricultural operators. Borrowers repay these amounts, meaning the fund does not rely on subsidies.
Since 1977, 608.6 million francs have been made available to farms, representing 5.7 times the initial endowment due to capital turnover. As of the end of September, 11.7 million francs in liquidity were available, with approximately 110 million francs committed.
This article was published automatically. Source: ats
