Farmer, take the initiative yourself!

"The Netherlands is full", it is sometimes said. However, that's just how you look at our country; with the eyes of the broker on the private market or with the eyes of the broker in agricultural real estate.

I notice something remarkable. At present, approximately 11 million square meters of agricultural real estate are vacant. An additional 40 million square meters is expected to be added in the coming years. That is an area of ​​5 by 8 kilometers, about half of the city of Utrecht.

You would say that with the pressure on the housing market, especially in the big cities, there are always buyers who want to exchange the city for an idyllic piece of land. They certainly are, but often they soon find out that reality is less idyllic.

Pig cycle
To start with, there are buildings in many agricultural areas, which a private buyer finds difficult or difficult to do. Demolition seems to be the only option. But who is going to pay for that? Should we immediately look to the government, which should help with an appropriate subsidy? That doesn't seem the right way to me; clearing unsaleable real estate is not a government task.

The first step, if it were up to me, should be different: looking at the valuation of such unprofitable real estate. I understand that this is not a nice message for the selling party, but unfortunately it is the law of market forces. Or, to use appropriate terms, we see the pig cycle in full swing here.

Own initiative
Speaking of that government: it is said that the government is acting too slowly in this matter. That is true, but it can be explained. After all, the government has to serve many (sometimes opposing) interests and that requires careful consideration. That is annoying and the government could act more quickly, but it remains to be seen whether the farmers were helped in time.

I would like to turn it around. Perhaps farmers should better anticipate the slowness of the government. If you know that you will have to stop in the long term and if you know that the destination for more promising sales must be converted to housing, then go to the municipality yourself (with an adviser). Rather have that conversation.

I now have such a concrete case myself, of a dairy farmer who is going to stop. We have a private buyer in the picture, who only wants the land. And: that buyer needs a commitment from the bank that the destination will be converted to residential. We are now actively working to get the municipality to make that zoning change. Even then, it could take months before we can move forward. 

My advice to all those farmers who are considering quitting would therefore be: take for granted that others do not act as quickly as you would like. Take the lead and show that you are an entrepreneur for a reason: take action. And don't think when selling your real estate: "It will be fine."

Harry Kasper
Board member Agricultural Real Estate Section

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