We're continuing our interview series with members of the LANDE team with Martins Geidels, the Country Manager of LANDE Romania. In this conversation, he shares his professional background, his journey at LANDE, and the challenges and opportunities of growing operations in Romania. He discusses how LANDE is adapting its loan strategies to market conditions, supporting farmers with tailored financial solutions, and ensuring strong results for both borrowers and investors. 

This interview provides a closer look at the unique dynamics of Romania’s agricultural sector and LANDE’s commitment to fostering sustainable growth. 

Stay tuned as we will continue this series with other key members of the LANDE team! 

Can you tell us a bit about your professional background? How and when did you join LANDE? 
 
Working in finance was not a coincidence but a conscious decision, which is why I chose to study economics with a specialization in finance. My journey in the financial sector began, as it does for many, in a bank—initially serving individual customers and later corporate clients. This experience allowed me to gain practical knowledge in lending. I then moved to the non-banking sector, where I spent more than four years in mortgage lending, working with both consumers and business clients, including many farmers. 

I joined LANDE from the very beginning, when we were just starting to plan and prepare for closing our first deals and publishing them on the platform. I was responsible for client acquisition, identifying sales opportunities, and building and managing the sales team and partnerships in Latvia. Then I spent some time in Lithuania, and now I've fully moved to Romania, found an apartment next to the office, and am fully enjoying this new chapter of my journey. 
 
I still remember when we published our very first project—we celebrated every €50 investment and truly believed in what we were building. Looking back now, it’s incredible to see how much work has been done to reach the position we are in today with trust from more than 8,000 investors. 

Tell us more about your role as Country Manager of LANDE Romania? How does a typical day/week look like for you? 

It has been, and still is, an incredible experience for me. I won’t lie—every day comes with its challenges, especially when working in a different country with a different mentality and numerous nuances in agriculture and national regulations that we hadn’t encountered in previous markets. However, this also makes each workday dynamic and eventful, making the time fly by and gaining very good experience. 

My daily tasks cover everything imaginable—from leading and motivating the local team, presenting LANDE to various partners, representing the company, and holding meetings with new and existing partners, to evaluating financing projects, meeting with clients, updating internal procedures, and working on various projects. 

What are the key teams working in Romania, and how much do you collaborate with teams in Latvia and Lithuania? 

The model is similar in all countries: the debt collection and legal team, the sales team, and other functions are outsourced. We frequently communicate between departments and occasionally hold joint meetings to discuss and share solutions to common challenges across markets, improvements made, and other relevant matters. 

We aim to maintain centralized procedures for many processes, and to implement them effectively, we always coordinate with all countries in advance to ensure everything runs smoothly. As a result, there’s frequent communication between countries. 

How would you describe the current state of the agricultural sector in Romania? Are there any interesting trends or highlights you can point to? 

The agriculture sector in 2023 and 2024 is still dealing with both challenges and opportunities. Fluctuating input costs, lower grain prices, and unpredictable weather have made things tough for many farmers, but government support and EU funding are helping to ease some of these issues. 

I would also like to highlight the positive aspects: more and more clients are implementing irrigation systems following the drought of 2023, and as we know, 2024 has also seen significant droughts in the south. Irrigation has become the essential solution to protect farmers' businesses from further losses and productivity decrease. 

During my visits to farms, I noticed that many are now adopting smart farming tools, such as drones and data-driven decision-making (with EU support). This trend is not limited to large farms, as it was in the past, but also extends to farms starting with 200-300 hectares. 

Additionally, there is an increasing focus on satellite imagery and data analytics to optimize water usage, reduce input costs, and improve yields. However, I believe there is still considerable progress to be made in this area, and this is just the beginning of the transition from traditional farming methods. 
 
What makes the Romanian market unique or different from others in the LANDE portfolio? 

As many know, Romania is one of the largest grain producers in Europe, especially for wheat and maize, and around 20% of the population works in the agricultural sector. The first thing I would like to mention is the huge market potential, which was also one of the reasons we entered the Romanian market. 

However, there are some challenges that should be noted. Compared to the Baltic states, deals are rarely closed remotely in Romania because there is simply no way to confirm a deal remotely with a notary. Additionally, many documents cannot be obtained electronically and often have to be received by mail or through in-person visits to clients, which frequently extends the deal-closing process. 

What’s different in Romania is that we collaborate with agents who visit clients in person, enabling our sales team to continue processing incoming applications instead of wasting a full working day visiting 1-2 clients (Romania is almost five times bigger than Latvia for comparison). 

Of course, there are also differences in what farmers grow. For example, we have financed watermelon growers, cherry plantation owners, and many clients growing sunflowers, which is very rare in the Baltics. 

I would say there are many differences, but to sum it up: Romania is not as digitally developed as the Baltic states, there are various specific but profitable business models in agriculture, many clients do not maintain proper accounting, and therefore it is only by meeting the client in person that you can truly understand the business in detail and assess whether the client can repay the loan with their business.

What are the biggest challenges Romanian farmers face, and how does LANDE help address them? 

Romanian farmers face several key challenges, including drought, which significantly impacts crop yields. One of the ways LANDE helps is by offering financing solutions for the implementation of irrigation systems, helping farmers better manage water resources and protect their crops in dry periods. 

Another major issue is the high cost of inputs, especially when farmers have to pay in advance. By taking out a loan, clients can sometimes secure a 35-45% better price for inputs, simply by paying cash directly to distributors. This financial flexibility helps farmers access the resources they need at a more affordable price. 

Additionally, many farmers are burdened with loans that come with high interest rates. LANDE helps by restructuring these loans, offering better terms and helping farmers reduce their financial strain, allowing them to focus on growing their business instead of dealing with unsustainable debt. 

How do you identify and onboard farmers who are a good fit for LANDE's lending services? 

We have an internal evaluation system that takes into account over 40 different factors, which form the basis of the final decision if client is good fit for LANDE or not. These include various financial indicators, such as the debt-to-assets ratio, turnover, the company’s historical financial data, etc. 

In addition to financial metrics, we also assess the client’s reputation and visit the farm to verify that the assets are still intact and the farm is functioning. This is a critical factor in the decision-making process. 

We also evaluate the potential minimum income the farmer could generate in the coming year, based on registered land areas and crop types. Special attention is given to whether the client is located in a high-risk zone (such as drought-affected areas) and whether they have an irrigation system in place. Equally important is determining the minimum market value of the potential collateral to ensure the loan does not exceed 60% of the total collateral value.  

All these combined factors contribute to the final decision on whether client is a good fit or not. 

How did LANDE perform in Romania in 2024? Did you make any notable changes to the lending services or internal operations that improved performance? 

In 2024, we successfully signed 112 projects, issuing a total of nearly 4 million euros. Our portfolio grew by 120%, increasing from 2.5 million to 5.5 million euros. One of the most significant changes this year was the doubling of the share of loans secured by real estate and land in our portfolio. 

Additionally, we continuously review and optimize our internal operations in Romania. We hold monthly discussions with all departments, as well as with the agents who represent LANDE, to identify opportunities for improvement and ensure ongoing efficiency. 

As market conditions have shifted, has LANDE adjusted its credit scoring or loan approval processes in Romania? What specific changes have been implemented, and how have these helped mitigate risks? 

In response to shifting market conditions, we have made several key adjustments to our credit scoring and loan approval processes in Romania. 
 

We now have a more thorough understanding of the riskiest areas in terms of drought, land prices, and demand across different regions. We have also lowered the Loan-to-Value (LTV) ratio for new machinery projects to ensure we can sell the equipment at auction if market conditions for farmers worsen and demand remains low, among other changes. 

Additionally, since 2023, our first full operational year, our team has gained significant experience. As a result, we can now assess clients more efficiently—rejecting applications more quickly when necessary and identifying potential red flags sooner that could indicate why a loan should not be approved. We also collaborate with outsourced companies that provide detailed information about client companies, further strengthening our risk assessment process. 

Additionally, through our partnerships, we are often able to directly engage with the companies our clients purchase inputs from or sell grains to. This helps us gain deeper insights into their previous collaborations and obtain more detailed information about the client’s overall operations and history. 

Defaults are a natural risk in any lending business. What is the current default rate for loans in Romania, and what steps are you taking to minimize risks for investors? 

The current default rate in the Romanian market stands at 4.8%. Out of the 11 defaulted projects (across 8 different clients), 1 was secured by harvest pledges, 8 by machinery, and 2 by land. Notably, 10 of the 11 projects were issued during our first year of operation. 

To mitigate risk, we have lowered the Loan-to-Value (LTV) ratio for machinery projects and set limits on machinery loans based on the year of production. Additionally, we have increased the percentage of clients with land or real estate collateral, ensuring we can recover loans more easily in the event of a default. 

In parallel, we are actively working to establish new partnerships in Romania to refinance clients at the first signs of late payments. 

My goal here is certainly to build an even stronger team, make the company more profitable in 2025, and achieve various strategically set objectives, such as finding a director with significant local experience, finalizing ongoing collaborations with other key partners, optimizing all processes, and, by December 31, 2025, looking back with pride at everything accomplished. 

As for personal goals... My hobby is running, so I definitely aim to participate in at least three half-marathons and attempt my first full marathon. I also want to stay disciplined by going to the gym at least three times a week. 

Beyond sports, my personal goal is simply to be happy and enjoy life to the fullest—and say 'yes' more often! :)