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'Lack of young farmers is a major problem'

14 January 2021 - Kimberly Bakker - 9 comments

The lack of young agricultural entrepreneurs in the Netherlands is a major problem, according to LTO Nederland, the Dutch Agricultural Youth Contact (NAJK) and the BoerBurgerBeweging (BBB), among others, in response to the new data on business succession. "Support for young farmers is urgently needed in the coming years. Especially with a view to the growing world population and therefore increasing demand for food."

From figures from the Central Bureau of Statistics (CBS) it is this week showed that only 41% of agricultural companies have a successor. This means that 16.000 agricultural companies with a farm manager aged 55 or older do not yet have a business successor. This news is ringing alarm bells at the various trade associations in the sector. "Just like 4 years ago, the number of stoppages is greater than the growth of the permanent companies and that is a concern for the food production of tomorrow," says Eke Folkerts, director at the NAJK with the Company Takeover portfolio.

Folkerts continues: "The agricultural sector in the Netherlands is responsible for an export value of €94,5 billion. 75% of these products remain in Europe. It is therefore in the interest of both the Netherlands and Europe not to oppose young entrepreneurs, but to encourage them to take over an agricultural business." BBB party leader Caroline van der Plas also sees a gloomy view: "The Netherlands is now rapidly deteriorating."

Complex laws and regulations
Industry organization LTO Nederland also shares the concerns of the NAJK and the BoerBurgerBeweging. "Since young farmers are of great importance to the food supply in our country, it is very important that they get more perspective and that they are supported in their ambitions," said Sjaak van der Tak, chairman of LTO Nederland. Incidentally, he is not necessarily surprised by the low number of company successors. "Many young farmers and horticulturists lack clear future prospects." Like the NAJK and BBB, he is referring to the increasingly complex legislation and regulations in agriculture.

"Farmers in the Netherlands produce cleaner and more sustainably than elsewhere in the world, and yet some parties do not hesitate to dismiss farmers as environmental polluters, animal torturers and poison sprayers," says Van der Plas. "Because the government wants farmers to produce smaller and more sustainable, they are also literally and figuratively driving small family businesses away from their land. Do you think it is strange that young people no longer see any benefit in agriculture?!"

In combination with the complex legislation and regulations, according to the party leader, this also ensures that the costs of producing food in the Netherlands are skyrocketing. "While the rules are becoming stricter, farmers also receive too low prices for the food they produce. For 1 kilo of pork, a farmer gets around €1,15, while this goes for €9,82 at Albert Heijn. VanderPlas said. Incidentally, discussions on this subject are taking place today (Thursday, January 14) between the Central Bureau for Food Trade, farmers, the catering industry, the government and various trade associations.

Are there solutions?
According to the trade associations, there are sufficient solutions, but the government is not always willing to listen. "The figures make the need for a 'knowledge center for business acquisition' painfully clear. Taking over a company is not something you do overnight. It is a complex process on both a financial and social-emotional level and requires years of experience. preparation", says Folkerts. "At the same time, there are also many young people who would like to become farmers, but do not have a company at their disposal. In order to bring these successors and transferors in contact with them, we have started the 'Farmer seeks farmer' platform." Nevertheless, NAJK believes that the government can contribute more in this area.

LTO Nederland also believes that substantial investments should be made in the coming years to encourage business takeovers. "Even more than financial support, entrepreneurs need a future perspective and a profitable company. Obstacles must be removed," says Van der Tak. Van der Plas supports this: "As far as I am concerned, new rules should only be introduced if the costs that the entrepreneur must incur are included in the price of the products they supply. Another option is to allow an 'eye for an eye'. adapt: ​​new rules will only be introduced if rules are also abolished." According to the organizations, it is only possible to make the sector interesting for young people again by offering a clear future perspective.

Do you have a tip, suggestion or comment regarding this article? Let us know

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.
Comments
9 comments
Subscriber
mt 14 January 2021
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/agribusiness/article/10890648/lack-aan-jonge-boeren-is-een-groot-problem]'Lack of young farmers is a major problem'[/url]

Logical or not.... The young generation can no longer be fooled carelessly.

Frustrated with a tip, work yourself to pieces, run risks, and it's in the supermarket for 3 double prices.

It's sad, very sad.
14 January 2021
Few successors in pig farming due to insufficient financial perspective for the future of pig farming, pig farmers are afraid that we will go back to the situation before the swine fever in China. Over the past 20 years, pig farmers have further slimmed down their business operations and have started to produce more efficiently. As a pig farmer, you notice that the rest of the pig sector is doing everything it can to leave everything as it was and is even trying to achieve more margin and turnover from pig farmers.

It has been said often enough in the last 20 years that something has to change if we are to compete with other countries. The only thing suppliers and buyers have done is keep pig farms going with the help of loss financing in order to retain as much volume as possible and to make a profit.
This has destroyed the classic pig cycle, which has always been the strength of the pig sector, survival of the fittest. As a correction for the absence of the pig cycle, a buy-back scheme and possibly external netting will be introduced.

Instead of making the Dutch pig sector stronger, in recent years our chain partners have mainly been busy investing the profits they have made with Dutch farmers abroad to boost pig production there, including the Rabobank. By raking in knowledge, craftsmanship and money among Dutch pig farmers, our foreign competitors have made significant strides and are still doing so.

Our over-eaten, wealthy suppliers and customers have eaten us dry. Now that we are so hungry that a buy-out scheme offers a solution for a number of companies so that they do not have to continue the company with a noose around their necks and when there are too few successors, our representatives often take action sponsored by the wealthy suppliers and customers. , have they been sleeping for the past 20 years?
Jan 14 January 2021
Let these parties focus on the working methods of the periphery and commit themselves to a good revenue model. The profits of the suppliers are sky high, who invest in companies abroad that are many times larger than what we call a mega stable in the Netherlands. There we have to compete with our 70% export of our pork. Moreover, the profits of the suppliers in the NETHERLANDS are earned from the farmers whose interests these parties claim to represent.

There is enough money to be made in the pig sector in the Netherlands as long as the suppliers and buyers divide it fairly and do not take the money abroad. The only thing the advocate has dared to say for 25 years is that we have to get it from retail. Meanwhile, in the international market (where the prize is made) we are being swept away by integrations abroad set up by the sponsors of our advocacy groups. With a good revenue model, nobody is afraid of new laws and regulations, if integrations can be set up abroad with our profits, we can also innovate our Dutch sector with it, but both at the same time that is NOT possible. The added value of the agricultural sector must remain in the Netherlands! Now the periphery keeps the Dutch agricultural sector in a coma and expands itself abroad until they pull the plug at the farmer in the Netherlands.
suddenly 14 January 2021
simple result of globalization. Closing borders and re-entering national currencies will help.
Bb 14 January 2021
first destroy all agro companies then be surprised that there are few successors. bye january
14 January 2021
Klopj @ Jan, advocates have been telling farmers for years that passion is another word for wanting to work for nothing. While the wealthy related companies invest the profits of the Dutch farmer abroad. Now it turns out that this way of working leads to a lack of successors, and they think that's crazy.
victim 14 January 2021
There is no sector where productivity growth is as high as agriculture. A factor of 4 in 50 years. In other words, 3% per year. That is also the percentage of farmers who stop each year.
Subscriber
other peter 15 January 2021
I am now half way through my professional career. I've been hearing all my life that there are no more young farmers. This "problem" occurs throughout Europe. How many times have I heard that in 20 years there will be no more farmers... Man what a blessing it is that there are and have been many quitters. We only really have a problem if every farmer had and has a successor. Then we would still have had to work 150.000 million hectares of land with 1.8 farmers. pff then you really have poverty and hidden unemployment. In short, a non-issue that we should stop talking about. Farmers will always remain there will be fewer but I really don't see any land lying fallow around me. When a piece of (rent or lease) land becomes available, 5 people jump up to outbid each other in rent. I wouldn't worry about that until we get money from a landowner to use his land.
Subscriber
3897 16 January 2021
Indeed "other godfather" the battle for the means of production in agriculture is so great that as a normal farmer with some growth ambition you follow this discussion with great disbelief. If we assume shrinking production space and current technological development, the succession pressure is much too high. The howling reactions of LTO and NAJK speak of little eye for reality and strengthen the left-wing politicians in their goals to romanticize / transform agriculture into a medieval past.
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