Rabobank: 'Not guilty of agricultural problems'

Rabobank acknowledges that it is jointly responsible for problems that agriculture now has to deal with. "As a bank, we share responsibility for how the system is now," says Bas Rüter, Sustainability Director, in an episode of Zembla that will be broadcast tonight (Thursday, January 28).

In the broadcast, Rüter says: "The problems are part of a system that produces food, on which we all depend. So it is a fault for the side effects and it is also co-ownership of the important product that comes from agriculture. We are responsible for the problems."

He also says: "If you only focus on the crisis in agriculture, then of course we are the financier of agriculture as it is now. And that also means that the problems associated with it are financed by us. As a bank, we share responsibility for how the system is now."

No IOUs
Rabobank will come out with a statement before the broadcast to - in its own words - nuance the picture that Zembla paints. Although the word 'debt' is used, according to Rabobank, this should not be interpreted as an admission of guilt. "You are guilty if you do something that is fundamentally wrong, this is a side effect," a Rabobank spokesperson explains when asked.

The bank therefore does not expect any legal consequences. Agricultural entrepreneurs who feel duped by the bank seem to have little chance of getting compensation on this point. Agricultural lawyer Willem Bruil expects any damage claims to have no chance. "It is not Rabobank that takes decisions to scale up, the bank decides on loan applications."

Switching organic
Zembla also spoke to several farmers who wanted to switch and could not get financing for this. Rüter: "Let's be real, it is not much money at the moment in Dutch agriculture. It is often the case that the transformation to organic, for example, leads to fewer cows per hectare and fewer liters and as a result less balance and then often also the wish to have fewer cows. And if you add that together, it often doesn't work out."

'Stimulating sustainability'
The bank has approximately €30 billion outstanding in Dutch agriculture, of which approximately 3% is invested in organic farming. In the statement from Rabobank in response to the broadcast of Zembla, the bank states that it finances 70% of companies in organic farming and that sustainability extends much further than switching to organic farming. "With sustainability matrixes and associated rewards for well-performing companies, the bank wants to encourage customers to make their businesses more sustainable."

I understand this frustration. There is so much nonsense being spread about agriculture. the upcoming @zembla broadcast is another slap in the face for all farmers who maintain their soil level. https://t.co/XVxgvV7LUT

— Hidde Boersma (@Hiddemhigh) January 28, 2021

Linda van Eekeres

Linda van Eekeres is co-writing editor-in-chief. She mainly focuses on macro-economic developments and the influence of politics on the agricultural sector.

l.vaneekeres@boerenbusiness. Nl

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