Community Financing: Strawberry Tree investment support up to 90%
We explain, in a simple and practical way, how the Common Agricultural Policy (CAP) supports the installation and management of strawberry trees.
We focus exclusively on strawberry tree cultivation, addressing the available support, which can cover up to 90% of the initial investment and guarantee maintenance subsidies of up to €1,200/ha. Our approach is practical and objective, helping you to structure your project efficiently, reducing risks and ensuring the best use of the available support.
The CAP (Common Agricultural Policy) supports agriculture and forestry in the EU.
The CAP plays an essential role in supporting the agricultural and forestry sector, promoting investment, modernisation and sustainability of farms.
PEPAC 23-27 (Common Agricultural Policy Strategic Plan is the community framework of the CAP for the period 2023 to 2027) defines investments and support in the form of subsidies for Portugal, promoting modernization and sustainability.
The two pillars of support:
Investment and Rural Development – Supports modernization, innovation and sustainability.
Direct Payments – Annual subsidies to ensure income and ecological practices.
How is the Strawberry Tree seen in the CAP,
The strawberry tree stands out for being one of the few species that benefit from simultaneous inclusion in measures to support agricultural and forestry investment, making it a versatile and strategic option for rural landowners.
- Agricultural : strawberry tree orchards and agricultural management, regardless of the purpose of the fruit, its use or drainage channels.
- Forestry : reforestation of agricultural and non-agricultural land. With or without consociation with other forest species.
Given its productive and ecological potential, the strawberry tree represents an excellent opportunity for landowners interested in benefiting from CAP support. Support reduces project risk and investment value, thus ensuring both economic viability and long-term environmental benefits.
What is the PAC and the PEPAC 23-27 program?
The Common Agricultural Policy (CAP) is the main instrument supporting the European Union's agricultural and forestry sector. The CAP Strategic Plan (PEPAC) 2023-2027 defines the financing rules and support available to Portugal, focusing on the modernisation, sustainability and profitability of agricultural and forestry holdings.
The CAP is structured around two main pillars:
- 2nd Pillar: Rural Development – Finances structural investments in agricultural and forestry activities, aiming at innovation, modernization and sustainability.
- 1st Pillar: Direct Payments and Market Measures – Includes annual support for farmers, ensuring income stability and encouraging sustainable practices.
2nd Pillar: Rural Development
What does PEPAC 23-27 prioritize?
PEPAC 23-27 gives priority to projects that promote:
- Environmental and climate sustainability
- Efficiency in the use of resources
- Innovation and digitalization
- Enhancement of rural areas
Intervention Measures and Investment Support
Main relevant aids for the Medronho sector
PEPAC distinguishes measures for agriculture and forestry.
Intervention Measures and Investment Support
Agricultural Support - Strawberry Tree Orchards
C.2.1.1 Agricultural productive investment - modernization
- Objective : To strengthen the competitiveness of agricultural holdings. These investments consist, in particular, of the acquisition and installation of machinery and equipment, construction of buildings, land improvements, plantations, nurseries and irrigation systems.
- Beneficiaries : Individuals or legal entities, of a public or private nature, who respect the condition of farmer.
- Non-refundable support rate : Up to 85% of eligible investment
C.2.2.1 Young Farmers Installation Award
- Objective : To support the first installation of young farmers
- Beneficiaries : Young farmers who are setting up as farmers for the first time as those responsible for their holdings, including legal entities that take the form of limited liability companies and have agricultural activity as their corporate purpose, provided that the managing partners who are young farmers hold the majority of the share capital and individually a stake of more than 25% in the share capital.
- Non-refundable support : Fixed amount per beneficiary up to a maximum of €55,000
C.2.2.2 Productive Investment Young Farmers
- Objective : To support investments in young farmers' farms. These investments consist, in particular, of the acquisition and installation of machinery and equipment, construction of buildings, land improvements, plantations, nurseries and irrigation systems.
- Beneficiaries : Young farmers who are setting up as farmers for the first time as those responsible for their holdings, including legal entities that take the form of limited liability companies and have agricultural activity as their corporate purpose, provided that the managing partners who are young farmers hold the majority of the share capital and individually a stake of more than 25% in the share capital.
- Non-refundable support rate : Up to 80% of eligible investment
D 1.1.1 Small investments in agricultural holdings
- Objective : Support investment in agricultural installation or modernization
- Beneficiaries : Applicable in all territories included in the Local Development Strategies approved by the PEPAC Management Authority on the Mainland, following the opinion of the Selection Committee.
- Non-refundable support rate : Up to 50% of eligible costs
C.5.2 Training and Information
- Objective : To promote the necessary skills of young farmers at an early stage of their establishment.
- Beneficiaries : Legal entity, private or public, which on the date of submission of the application is legally constituted, established, with activity in mainland Portugal, alone or in partnership, with technical skills in the identified areas.
- Non-refundable support : The maximum amount of eligible expenditure is limited to €150,000 per action plan.
C.5.5 Specialized Technical Support | Young Farmers
- Objective : To contribute to strengthening the skills of beneficiaries (direct or indirect) of other PEPAC interventions
- Beneficiaries : Legal entity, private or public, operating in mainland Portugal, alone or in partnership, with technical skills in the identified areas.
- Non-refundable support rate : Simplified costs in the form of indirect costs on human resources expenses of 35%; Maximum value of 90 thousand euros per action plan.
Intervention Measures and Investment Support
Forestry Support - Strawberry Trees in the Forest
C.3.1.1 Productive investment in bioeconomy - Modernization
- Objective : To contribute to the consolidation of the agro-industrial fabric and the forestry industry. The project to be supported must have the following economic framework: Food, beverage and wood industry, cork (NACE Codes C10, C11, C16) or activities supporting agriculture/forestry (NACE Codes A01.6 and A02.4).
- Beneficiaries : Individuals or legal entities, legally constituted with bioeconomy activity associated with agriculture/forestry.
- Non-refundable support rate : Up to 65% of eligible investment
C.3.2.1 Afforestation of agricultural and non-agricultural land | "Non-agricultural land" component
- Objective : To support the establishment of forest stands (tree species and perennial woody silvicultural shrub species). Priority will be given to the afforestation of non-agricultural land, namely areas with scrubland.
- Beneficiaries : Public, community or private entities and their associations, holders of agricultural and non-agricultural land
- Non-refundable support rate : Up to 95% of the installation cost
C.3.2.2 - Installation of agroforestry systems
- Objective : Support for the installation, regeneration or renewal of extensive agroforestry systems, using
species well adapted to local conditions. Support for the preparation of a Forest Management Plan or equivalent instrument, and preparation of the application and other studies prior to the implementation of the project, for individual farms, for ZIF, AIGP, common lands and entities
collective forest management.
- Beneficiaries : Holders of private, community and municipal land (provided they are in directly managed areas), and their respective associations.
- Non-refundable support rate : Up to 90% of eligible investment
C.3.2.3 Forest protection against biotic and abiotic agents
- Objective : To support investments in preventing damage caused to forests by rural fires, natural disasters and catastrophic events.
- Beneficiaries : Public, community or private holders, and their associations, of forest territories.
- Non-refundable support rate : Up to 90% of the installation cost
C.3.2.4 - Restoration of forestry potential following natural disasters, adverse weather events or catastrophic events
- Objective : Intervention at the level of forestry and agroforestry farms
- Beneficiaries : Public, community or private holders and their associations of forest territories
- Non-refundable support rate : Up to 100% of eligible cost
C.3.2.6 Improving the Economic Value of Forests
- Objective : To carry out investments aimed at improving the economic value of the forest. To support the recovery of stands in clear underproduction, by replacing them with plants better adapted to local conditions.
- Beneficiaries : Holders of private, community or municipal forest territories and their associations.
- Non-refundable support rate : Up to 65% of eligible investment
C.3.2.8 Reward for loss of income and maintenance of forestry investments
- Objective : Maintenance and management of areas associated with afforestation investments and creation of wooded areas, within the scope of the PEPAC intervention
- Beneficiaries : PEPAC beneficiaries within the scope of interventions relating to investments in afforestation and creation of wooded areas, namely in the interventions: «Afforestation of Agricultural and Non-Agricultural Land»; «Installation of Agroforestry Systems» and «Reestablishment of Forests Affected by Biotic and Abiotic Agents or by Catastrophic Events»
- Non-refundable support : Up to €238/ha
C.4.1.3 Restoration of productive potential
- Objective : Reconstitution or restoration of production conditions on agricultural holdings affected by natural disasters, adverse climatic accidents or officially recognized catastrophic events, in order to create conditions for their return to normal activity.
- Beneficiaries : Individuals or legal entities whose agricultural holdings suffer significant reductions in their agricultural and land production potential as a result of officially recognized natural disasters or catastrophes.
- Non-refundable support rate : Up to 100% of the eligible cost
PEPAC Investment Calendar (Provisional)
Please check the updated dates in the following document: ( Annual Application Plan 2025 )
What does non-refundable support, non-refundable subsidy or “non-refundable grant” mean?
Non-refundable grants are subsidies granted without the need for reimbursement, covering part or all of the eligible costs. They are used to encourage strategic investments and reduce the financial risks of beneficiaries.
For example, if the total cost of a project to establish an arbutus orchard is €50,000 and there is a non-repayable grant covering 90%, this means you receive €45,000 in funding without the need for reimbursement. Therefore, the farmer only needs to invest €5,000 of their own funds.
Where can I apply for these investments? Do I need technical support?
Applications are submitted through the agriculture funds portal .
Although it is possible to apply individually, the bureaucratic and technical complexity of the process makes it advisable to seek the support of specialized consultants.
Applications can be submitted individually, but there is a risk of errors and a high level of bureaucracy. Consultants can help reduce these risks and maximize the likelihood of your project being approved.
What is VGO in competitions?
The "Overall Operation Value" (OOV) varies depending on the competition and specific objectives, and it is essential to analyze the criteria before applying.
Each measure has eligibility criteria, as well as criteria for evaluating and scoring applications (VGO). The VGO value ranges from 0 to 20 points.
There is a need to highlight situations in which there is no financial allocation for a measure for all projects that are viable (technical and financial coherence).
When can I apply? What do I need to prepare?
Applications may only be submitted during the periods in which calls for proposals are open (defined by the PEPAC management authority and based on an annual plan)
These competitions usually have short submission deadlines and the annual opening plan may change, making it less predictable.
Applications should be planned in advance, including:
- A clear definition of the objective for the agricultural or forestry operation helps to choose the best measure
- Project definition, eligible expenses and cash requirements
- Approvals from entities such as ICNF, REN, RAN, Natural Park and Natura Network, Municipal Councils, APA and others
- Technical and financial feasibility studies
When are non-refundable investment support and subsidies paid?
Non-refundable subsidies can cover up to 90 % of the costs of setting up an orchard or strawberry tree forest.
It is important to highlight that payments to the farmer are only made after the expenses have been incurred. This means that the farmer pays first and only then receives a contribution (except for the installation bonus of the Young Farmer measure).
Correct planning and technical monitoring allow for implementation and reimbursement requests to be made in stages, reducing the farmer's cash flow needs.
1st Pillar: Direct Payments and Market Measures
Main relevant aids for the Medronho sector
Direct Payments and Market Measures
Agricultural and Forestry Support
Direct Payments:
- Basic Payment Scheme (RPB) "Rights"
- Redistributive support
- Payments to small farmers
Agro-environmental and Eco-Regimes:
- Organic Production Method
- Integrated Production Mode
Rural Development:
- Support for farms in disadvantaged areas
- Afforestation of Agricultural Land (support for loss of income and forest maintenance)
- Sensitive Areas
- Natura network payment
Where can I apply for these Direct Payments and Market Measures? Do I need technical support?
Unlike investment support, Direct Payments can only be submitted by a technician accredited by IFAP.
The process is annual and is done through the "Single Application". The application dates and specific rules of the year are defined by IFAP.
What is IFAP?
IFAP (Institute for Financing Agriculture and Fisheries) is the public body in Portugal responsible for managing and paying financial support (agricultural and forestry) under the Common Agricultural Policy (CAP).
I already have strawberry trees on my land but I have never received any subsidies. Can I still apply for support?
Yes, you can. Having made the investment on your own does not prevent you from applying for support. You may be eligible for:
- Support for agricultural or forestry maintenance
- Other incentives, as long as it meets the requirements demanded of the exploration and the promoter
Assessing these conditions is the first step — we can help you identify opportunities.
What are the stages of an application for a Community fund?
Although it may seem complex, the process follows a clear logic:
1. Feasibility assessment
- Legal conditions (REN, RAN, ICNF, Natural Park, etc.)
- Promoter Profile
2. Preparation of the application
- Technical project, budgets, forms
3. Execution and payments
- Project implementation
- Submission of payment requests and supporting documents
We follow all these phases
The land where I want to plant strawberry trees is not in my name. Can I apply for community funds?
Yes, you can. You do not need to be the legal owner. You just need to prove that you have the right to use and exploit the land, through a Lease Agreement or Loan Agreement.
I have an abandoned family plot of land that is covered in weeds. Can I plant strawberry trees? Can I apply for PEPAC?
Yes, it is possible. Many vacant lands have potential for productive projects. However, not all competitions apply to all types of land or developer. It is necessary to analyze:
- Legal and environmental conditions
- The current state of the land
- The adequacy of the project to the objectives of the notice in force
We can help you do this initial analysis.
I have already carried out a project using a project and subsidies from another community framework (RURIS, PRODER, PDR2020…). Can I apply again in the same area with PEPAC?
Yes, you can. Having completed previous projects does not prevent you from submitting new projects on the same land.
Each PEPAC competition has its own eligibility rules and specific objectives. It is essential to assess the viability of your new project in light of the rules of the competition in question.