Money for starting farmers to become more sustainable

Starting agrarian entrepreneurs can apply for a loan since 1 January 2020 to make their business more sustainable. The government is making a total of €64 million available for this.

With the Asset Strengthening Credit (VVK) guarantee scheme, starters have the option of taking out a loan up to 3 years after acquisition, with which they invest in the future-proofing of the company. The reason is that there is often no immediate scope to make investments in sustainability after the takeover of a farm.

Rijk guarantees
With this guarantee from the Ministry of Agriculture, Nature and Food Quality (LNV) – which was established in consultation with the NAJK, RVO and Rabobank – it is also interesting for lenders to offer this loan. If a company goes bankrupt, the government guarantees it. It is expected that financiers will be able to lend an additional €800 million to €1 billion with this arrangement.

In order to be able to use the scheme, the investment plan of starting farmers is tested for: closing cycles, strengthening the socio-economic position of the farmer in the chain, the climate challenge, ecosystems, vitality of the countryside, animal welfare and appreciation for food. These criteria come from the LNV vision for the future 'Valuable and Connected† Furthermore, the investments must demonstrate that the profitability, and thus the future prospects, of the company has improved compared to before the takeover.

Guidance trajectory
Taking over the company and making it future-proof requires knowledge of entrepreneurship. At the request of the young farmers themselves, space has therefore been created for setting up a training and coaching process. €11 million is available for this.

Jeanette Pennings

Jeannet has her roots in the flower bulb sector and she grew up on an agricultural company in the northern part of North Holland. As a generalist she reports for Boerenbusiness across all sectors. She is also exploring the possibilities of sponsored advertising.

j.pennings@boerenbusiness. Nl

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