News Young Farmers Fund
Why the Young Farmers Fund seems to be a flop
When agriculture minister Carola Schouten took up her position, a fund for young farmers to support business takeovers was one of her spearheads. The fund is making no less than €75 million available. However, there have only been 2 registrations. Why is the fund a flop?
De Telegraaf, which delved into the case, speaks of a 'lean harvest'. Moreover, only 2 of the only 1 applications has been approved. SGP MP Roelof Bisschop shares this opinion and has asked Schouten for clarification by means of parliamentary questions. "Unfortunately, setting requirements is easier for the minister than supporting family businesses," the SGP said in the statement.
Criteria stumbling block
To be eligible for the fund, successors must meet at least one sustainability requirement. This seems to be the point where interest in the fund stalls. The criteria that the young farmers have to meet are not a good one. They are aimed at making the company more sustainable. To make use of the scheme, the young farmers must have an investment plan that contributes to at least one circular agriculture-related point. This includes closing cycles, strengthening the socio-economic position of the farmer in the chain, the climate challenge, ecosystems, animal welfare and the appreciation of food. The investment plan must also demonstrate that the company's future prospects (including financially) have improved compared to before the acquisition.
These points are virtually impossible to achieve without investment. When the takeover candidate actually takes over the company, this is generally at the expense of the liquidity of the young entrepreneur. All the money will be pumped into the takeover, after which there will most likely be nothing, or not enough, left to make a sustainability move. Due to these regulations, the fund is expected to lose its attractiveness, because meeting the sustainability requirements does not fit within the financial plan of the young entrepreneur. SGP MP Bishop has asked Minister Schouten which of the applicable conditions constitute a barrier for young entrepreneurs.
support fund
In her first major newspaper interview as Minister of Agriculture, Nature and Food Quality, Schouten announced the plan in which she wanted to offer young farmers a helping hand when taking over a company. The plan has now come into effect: €75 million has been made available in a fund for which young farmers can apply. €11 million is intended for the training and coaching of the successors. Negotiations are still ongoing about how the amount will be spent.
Then there is still €64 million left, what happens to this? This amount has been pumped into a guarantee scheme that came into effect on January 1 of this year. This should make it more attractive for banks to provide loans to young farmers who take over a company or want to invest in innovation.
Jorine Cosse
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