Laimonas Noreika: How InSoil is Opening Agricultural Investing

In this interview, we speak with Laimonas Noreika, CEO of InSoil, about how the platform gives investors access to agricultural loans across Europe. We cover how returns are generated, the real risks behind the investments, how defaults are handled, and what investors should evaluate before committing capital.

For someone new to InSoil, how would you explain what investors are actually investing in and how they earn returns?

When investors invest with InSoil, they aren't just lending money through a platform, they’re backing the very foundation of our global economy - the agricultural sector. We offer the chance to invest directly in the production of essential food resources, with capital secured by the most tangible assets like land and high-value machinery.

Returns here are driven by the real-world profitability of farming operations. Historically, agriculture is one of the most resilient sectors, consistently maintaining some of the lowest loss of capital rates of any industry.

While we certainly navigate challenges like weather and market shifts, the offered returns are rooted in the long-term solidity of a vital industry. InSoil's goal is to provide investors with a grounded, stable alternative to the volatility of traditional markets—an investment which generates steady revenue.

What kind of returns can investors realistically expect today, and what are the main factors that can cause those returns to change?

At InSoil, we focus on delivering returns that reflect the grounded reality of the assets we back. Realistically, our investors see annualized returns between 9% and 12% on standard loans. For those investing in “Green Loans” , are looking at a base target of 12–13%, with a significant upside—potentially over 40%—if carbon markets and sequestration perform at their peak.

We want investors to understand that these aren't guaranteed fixed rates. They are driven by specific variables. The Project Risk Rating (A+ to C) is our primary lever, higher-risk projects carry higher interest to compensate for potential delays. We also navigate market dynamics, specifically carbon certificate pricing, and the agricultural realities of weather and crop fluctuations. These factors influence a farmer's cash flow, and while we use collateral to protect the principal, they do introduce variability into net returns. We’re here to help investors build a portfolio that balances that risk with the inherent stability of the land.

Agriculture sounds stable on the surface, but what are the biggest risks investors are exposed to when investing through InSoil?

At InSoil, the primary risk we manage is credit risk—the possibility that a borrower might not meet their obligations. Unlike a traditional bank account, your capital isn't covered by state deposit insurance, so while we work to prevent it, a loss of principal is a theoretical possibility.

Agricultural investing also means dealing with nature’s unpredictability. Factors like extreme weather can hit a farmer’s cash flow. However, we mitigate this by securing many of our loans with tangible collateral like land and heavy machinery.

Finally, there’s liquidity. Our loans average around 32 months. While we have a secondary market for early exits, its speed depends on other investors' activity. We aren't just selling a product, we’re inviting investors to back a vital, asset-rich industry, and we want them to do so with a clear understanding of these mechanics.

When a borrower fails to repay a loan, what actually happens step by step, and how much of the invested capital is typically recovered?

When a borrower falls behind, we don’t just sell the debt and walk away, we step in as an active partner to protect investors' capital. Our recovery process is a structured operation.

First, we prioritize proactive communication. Agriculture is seasonal, so if a farmer has a temporary cash-flow gap due to harvest timing, we may restructure the schedule. If that fails, we move to legal enforcement and asset foreclosure.

Because we focus on asset-backed lending with conservative Loan-to-Value (LTV) ratios, we have a significant safety buffer. While the legal path can take 12 to 18 months, this strategy allows us to typically recover 100% of the invested principal for a collateralized loan portfolio. Our goal is to ensure that even when a project hits a snag, the long-term solidity of the underlying land and machinery keeps investment secure.

How does InSoil assess and select farmers before listing them on the platform, and what separates a good borrower from a risky one?

At InSoil, we don’t leave selection to chance, we use rigorous, multi-stage vetting processes. It begins with a review of at least two years of financial records. Our experts conduct comprehensive credit checks against available reports to ensure every borrower meets our standards. We then assign a risk rating from A+ to C, anything below that is rejected.

What separates a good borrower from a risky one often comes down to their 'buffer. ' A top-tier borrower typically has a long operational history and offers high-quality collateral with a low Loan-to-Value (LTV) ratio. A riskier borrower may have more variable cash flow or less collateral, which is why we price those loans with higher interest rates to compensate our investors for the added risk.

Many investors compare platforms based on transparency. If an investor only had 2 minutes to evaluate a deal on InSoil, which 2–3 data points would you insist they look at before investing?

If the investors only have 2 minutes, they should look past the headline interest rate and focus on mechanics of the “safety net” . First, the Loan-to-Value (LTV) ratio. This is a primary protection. An LTV under 70% means there’s a substantial 30% buffer between the loan amount and the collateral's value, ensuring principal recovery even if asset prices dip.

Second, verify the Project Risk Rating (A+ to C). This internal grade reflects our comprehensive audit of the farmer’s financial stability and operational history. Finally, the Collateral Type. A mortgage on agricultural land is the gold standard for security, whereas movable machinery involves different depreciation risks. By checking these three data points, investors are evaluating the deal’s structural integrity rather than just its potential upside.

How is InSoil structured from a legal and operational perspective to protect investors if the platform itself were to face financial difficulties?

We’ve built the platform specifically to ensure that investments are legally segregated from our business operations. When people invest, the loan agreement is directly between the investor and the farmer. InSoil acts as the facilitator and servicer, but the legal claim to the principal and interest belongs to investors. Additionally the platform has its business continuity plan coordinated with Bank of Lithuania - a governing body where managing such a situation is disclosed.

Who should consider investing on InSoil, and just as importantly, who should stay away from this type of investment?

InSoil is designed for the patient, asset-oriented investor looking to diversify away from stock market volatility. If they value tangible security—like land and machinery, and have a medium-to-long-term horizon of at least 2–3 years, this is a strong fit. It’s ideal for those who want their capital to support the vital “real economy” while earning steady, annualized returns.

Investors chasing immediate returns should look elsewhere, as InSoil is built for those who prioritize long-term sustainability over instant profits.

What are the key milestones or goals you aim to achieve this year?

Our strategic goals for the year focus on enhancing investor security and scaling our regional impact:

Lithuania – Launch a Guarantee: We are aiming to introduce a high-security product for retail investors featuring a guarantee, which covers up to 80% of the principal in the event of a default.
Poland – Risk-Mitigated Growth: We will continue to prioritize capital preservation in the Polish market by offering loans exclusively backed by land, ensuring robust downside protection.
Market Expansion: We aim to increase our lending capacity to address the substantial credit gap in the Lithuanian and Polish agricultural sectors, positioning InSoil as the primary financial partner for underserved farmers.