Rabobank: 'arable farmer's revenue model must be broader'

"An arable farm should not only be viewed as marketing a main crop. The revenue model must be broader and circular agriculture offers opportunities for this", Rabobank said during the presentation of the report 'New rounds, new opportunities'.

According to Gea Bakker, sector specialist at Rabobank, there are several options within the vision of circular agriculture of Minister Carola Schouten (Agriculture, Nature and Food Quality) for broadening the revenue model. "For example, one can look at nature management and water storage, but also at solar panels and other variants of sustainable energy. This makes the entrepreneur less dependent on a main crop."

It is important in the revenue model that the circular agriculture targets are paid to arable farmers. "Rabobank can play a role in this, since the bank sits down with customers (such as supermarkets and food processing companies). We try to agree better conditions with companies in the chain about dealing with farmers. For example, include the extent to which buyers are willing to pay farmers a good price," says Bakker.

Biodiversity affects loans
Rabobank plays another role in realizing the transition to circular agriculture. The sector specialist said, among other things, that Rabobank is collaborating on the arable biodiversity monitor† "The monitor makes it possible to measure the extent to which a company is working on biodiversity. In the long run, this can affect the interest rate on a loan."

"Another way in which Rabobank wants to stimulate circular agriculture is to develop a sustainability matrix," says Bakker. Rabobank advisers then use this matrix in discussions with arable farmers and can thus refer to better soil management, dealing with the environment and precision agriculture.

Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.

aj.doorn@boerenbusiness. Nl

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