Guarantee scheme should help young farmers

The cabinet has set up the Asset-Enhancing Loans Guarantee Scheme (VVK). This should make it easier for young farmers to get a loan. Minister Carola Schouten (Agriculture, Nature and Food Quality) announced this on Wednesday 9 January. 

The cabinet has earmarked €75 million for the VVK Guarantee Scheme. This should make it more attractive for financiers to provide loans to young farmers who want to take over or start a business. The FRP scheme can also be used by young farmers who want to invest in innovation or sustainable business development. According to the minister, the scheme lowers the threshold, because the central government guarantees a large part of the subordinated loan.

"Many young people who want to take over or start a farm are faced with major decisions. The cabinet wants to help them make the right choices, while at the same time contributing to innovation and sustainable business management. With the VK Guarantee Scheme, young farmers can make use of the scheme for a longer period of time," writes the minister in a letter to parliament.

Training and coaching trajectory
Of the total amount (€75 million), about €11 million is for setting up a training and coaching process in the process of taking over a company, for example to facilitate the so-called kitchen table discussions in family circles. "This should simplify the business acquisition process." 

The training program focuses mainly on strengthening the entrepreneurship of the starting agricultural entrepreneur. In addition, course material will be developed to give farmers more financial insight, but also insight into what is involved in the takeover of a family business (such as the partnership deed, the takeover plan and the successor after takeover). 

Qualify
In order to be eligible for the VK Guarantee Scheme, the entrepreneur's investment plan will be tested against criteria from the vision of the Ministry of Agriculture, Nature and Food Quality, such as: closing cycles, strengthening the socio-economic position of farmers, the climate challenge, ecosystems, the vitality of the countryside, animal welfare and appreciation for food.

The Guarantee Scheme was established in consultation with the Dutch Agricultural Youth Contact (NAJK) and banks, among others. This is a new scheme that supplements existing schemes. 

Read Schouten's entire letter to parliament here. 

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

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