The nitrogen problem is leading to dire situations in and around the agricultural sector. VBO warns that missing crucial information threatens an incorrect valuation of agricultural real estate. The association of brokers, appraisers and rental brokers therefore advocates a nitrogen threshold.
The destruction of the Nitrogen Approach Program (PAS) by the Council of State has major consequences. In particular, the lack of a decisive and practical approach from the government has resulted in a dire situation. Work has come to a standstill in various sectors and the order books are empty. The farmers' protest has recently sparked uproar and public support. After all, the agricultural sector is at a loss. In fact, an economic emergency threatens the entire production and service chain in and around this sector.
Cornered
The consequences of the nitrogen problem can be felt in the entire agricultural sector. The granting of permits is very difficult, with the necessary consequences for business operations and development (see box 'Practice'). For example, there are no renovations or extensions of agricultural structures now that entrepreneurs and builders are unable to carry out any activities. In addition, the livestock farmer is in the dark about his business operations, as the standards for determining the production volume and associated rights are being challenged. Subsequently, the broker and appraiser cannot value the agricultural real estate substantiated. How does this translate into practice?
| Practice |
| A farmer keeps 125 cows in a barn with a capacity for 150 cows. The farmer has a license for 200 cows. This entrepreneur can now apply for permission for new projects based on internal netting, in which the nitrogen emissions of 150 animals form the basis for the permit process. The unused nitrogen emission space, formed by 50 animals, will then be cancelled. Several provinces went even further and drew up policies that, in this example, even wiped out the unused space of 75 animals. |
An agricultural entrepreneur has recently been required to request permission for expansions or adjustments to the business operations according to the system of internal netting. The intended project will then be adjusted in such a way that on balance there is less or equal nitrogen emissions. According to Minister Schouten of Agriculture, Nature and Food Quality (LNV), agriculture is now based on the actual realized barn capacity that fits within the licensed situation (unless 1 of the 4 exceptional situations occurs).
Company value
What numbers will the appraiser work with? Is the agricultural enterprise, including real estate, valued with 125, 150 or 200 animals and associated production rights? It goes without saying that this can cause a significant difference in valuation. Missing crucial information threatens an incorrect valuation of agricultural real estate. A very bad development that can disrupt the stability of the real estate market. Without reliable real estate valuations, people are less willing to do business with each other.
Proposal FEB
It is clear that the nitrogen problem in the agricultural sector is acute. Several manufacturers and service providers suffer greatly from the lack of appropriate measures and effective government action. VBO calls on the Minister of LNV to quickly come up with practical and reasonable solutions, such as a threshold value. With a threshold value, projects in which hardly any nitrogen is released will be able to proceed immediately if the nitrogen emitted is below this threshold value.
Alternatives and, above all, innovative solutions must also be sought carefully, such as further stimulating circularity within the agricultural sector. VBO is happy to contribute to this. After all, it is important not only to tackle the nitrogen problem, but also to prevent similar environmental disasters in the future. The agricultural sector must be and remain future-proof, also in view of its importance – 7,5% of GDP – for the Dutch economy.
VBO is the association of real estate agents, appraisers and rental agents that provides its members and the real estate market with clear visions and advice. VBO is for buyers and sellers, tenants and landlords, project developers and governments. The association for a stable real estate market.