It's not the best time to be in arable farming. This problem isn't limited to the Netherlands; it's also difficult across the North Sea, in England, to make a profit. Velcourt, which manages 52.000 hectares of agricultural land in England as a contractor, doesn't want to renew 20% of its contracts. The company claims that the significant downsizing is necessary for England's largest agricultural contractor to survive in the "non-supporting world."
"The past three years, including 2025, have been incredibly challenging for the arable farming sector, with, among other things, the worst weather-related yield impacts in 25 years," Nick Shorter, managing director of the Velcourt Group, told Farmers Weekly and The Times, among others. Inflation, the elimination of the basic premium from European agricultural policy, the temporary suspension of the Sustainable Farming Incentive (a program for nature-inclusive farmers in England), and low grain prices are also contributing factors to the slump in English arable farming.
Low cost not enough
Velcourt is big in the so-called contract farming Velcourt manages and operates farms for private landowners and institutional investors, including pension funds. Besides arable farming, Velcourt is also active in livestock farming and advisory services. According to Shorter, the farms managed by Velcourt have the lowest operating costs in the sector, but in many cases they fail to achieve profitability. Therefore, Velcourt has decided not to renew the management contracts for a total of 10.500 hectares. "The soil type, recent history, and expected budgets demonstrate excessive risk in the current market without underlying subsidies," says Shorter. "This decision recognizes that the agricultural sector, and arable farming in particular, must adapt in a world without support."
Velcourt generated revenues of approximately £43 million (approximately €49,5 million). In the 2024 financial year ending September 30, the company incurred a loss of £1,03 million (approximately €1,19 million), and in 2023, the loss was £1,24 million (approximately €1,43 million).
Share loss
Jamia Burrows, president of the arable section of the NFU (the English farmers' union), told Farmers Weekly that the news about Velcourt is sad, especially since it's a company that prides itself on efficiency and scale. "This really underscores the difficult position we're in. There are only so many ways to share a loss between two companies: the farmer and the contractor."
The fact that even a large and efficient company like Velcourt can't make its arable farming division profitable is raising questions among several players about how smaller and less efficient farms can stay afloat. Another question looming over the market is what will happen to the land Velcourt no longer wants to manage? Investors who bought the agricultural land without operating a fully independent farm will still want to see a return on their investment somehow.