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Rabobank: 'Equal amount of credit to farmers in the Netherlands'
The number of loans from Rabobank to Dutch farmers has remained more or less the same in 2020, according to CEO Wiebe Draijer during an explanation of the annual figures on Wednesday 11 February. In previous years there was always a contraction.
Rabobank made a profit of €1,1 billion in the past 'corona year', half of the profit for the whole of 2019. ABN Amro had to report a loss earlier this week.
Rabobank's entire Agri & Food loan portfolio in the Netherlands rose by €2,5 billion to €40,3 billion. "The lending to Dutch farmers within that sector has remained more or less the same," says Draijer. Lending to the foreign agri and food sector fell by 2% to €65,2 billion. The decrease applies to the international portfolio, says Draijer. "But if you factor in currency exchanges, it's about the same amount in real terms that's outstanding."
Food and agri more resistant to the corona crisis
"Food and agri seem more resistant to the corona pandemic than other sectors," the CEO notes. "The reason is basic: we consume differently, but continue to consume and the global food supply chain is well organized." The share of the agri and food sector in the bank's loan portfolio is 26%. Rabobank's market share in this sector in the Netherlands is approximately 85%.
How does Rabobank view its own role in sustainability and to what extent will it take on the role of government? "Just like during the post-war period, we want to contribute, provide products and services and help as much as possible. The government is the government. We want to be a partner of the entrepreneur and shape entrepreneurial spirit."
Relocation companies
"Of course we want to help the farmer to invest in sustainability", says Draijer. "We also want to help with area-specific adjustments, where there is a lot of nature, a fund for relocation, company exit and re-entry, new land consolidation. For the transition, which usually takes 3 years from one practice to another, we want to provide guarantees for a bad season, together with a number of international parties. We can also help with the discount on the interest rate."
By transition, he turns out not only to mean the switch to organic, but also, for example, technologies for lower emissions or new stable floors. Draijer also mentions 'the carbon market that offers the opportunity to market CO2'.
No loan without a permit
Thousands of PAS reporters are currently without a permit through no fault of their own. Farmers without a permit cannot obtain financing from Rabobank, Draijer is adamant about this. Existing financing is not simply terminated. "Discontinuation will never take place in that form. We help with transition. You should rather think of phasing." According to Draijer, the number of unlicensed companies that have a loan from the bank is 'very limited'."
"It is really necessary to price nature in," says the chairman of the board. "How many emissions are produced by products. Food, but also a car or new sofa." According to Draijer, compensation must be created, which must be returned to the farmers. He proposes a new service concept in which consumers can choose to compensate for emissions at the checkout. According to Draijer, the consumer pays €8 to €12 extra per month at the checkout. "As much as for a Netflix account."
Linda van Eekeres
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