When do I buy or sell animal rights?

Do you own all the necessary pig rights? Are you going to expand your business soon or do you need to lease pig rights every year? In all these cases it is advisable to consider when it is wise to purchase these rights.

Fiscal year 2017 is already half over and 2018 is approaching. The regulations state that animal rights will be lifted with effect from 1 January 2018. The past teaches us that it may happen that this date is pushed forward again within the next few months.

By extension, the banks often demand 100% animal rights in ownership. At companies where this is not yet the case, the banks urgently appeal to the entrepreneur to acquire all animal rights.

Liquid assets
At the moment some money is finally being made in pig farming again. In the context of cyclical fluctuations, buffers must of course be created to absorb the next fall in prices, but another part of the liquid assets could, for example, be invested in pig rights. Perhaps it is smart to park this part for a later purchase. It is expected that around 2020 additional pig rights will become available from companies that participate in the so-called 'stop scheme'.

Determine your buying or selling strategy
The availability of the extra pig rights can lead to a decreasing effect on the price. However, if many potential buyers wait for the rights of the stopper arrangement to be released, the huge demand at that time can also have a price-increasing effect.

If you need or need to sell pig rights, it is wise to determine your rate in advance in the manner of purchase or sale. Spread buying is often the least risky. Your acconâ– avm adviser can help you determine the buying or selling strategy. Contact your advisor or use the advice form.

Also have a look the knowledge page intensive livestock farming for more articles. 

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