The scale of Dutch arable farms is hardly increasing. This is stated in the Rabobank Vision Report on Arable Farming that was published on Tuesday.
Arable farmers find it difficult to find land because it is expensive and scarce. According to Rabobank, the large companies (with more than 80 hectares of agricultural land) had a 23 percent share in 2011. By 2013, that share had grown to 29 percent. In Belgium this share is comparable. By contrast, the share of large arable farms in France, Germany and the United Kingdom has grown sharply to 65 to 75 percent.
According to Rabobank, the increase in scale is hardly increasing in the Netherlands because land is expensive. At the end of 2016, the average land price was 56.500 euros per hectare. By way of comparison: In West Germany, a hectare of agricultural land costs 40.000 euros. British arable farmers only pay an average of 10.000 euros per hectare.
Other forms of land use
Arable farmers who want to grow will more often have to look for other forms of land use, for example by leasing land, cultivation lease, purchasing land with the help of external financiers or by concluding exploitation contracts with stoppers. The latter is especially interesting for young entrepreneurs, according to the bank.
Whether arable farmers can obtain credit from financiers will depend more on how efficiently the entrepreneur is able to use his machines, personnel, fertilizer, seed and seed.
Market outlook excellent
Rabobank emphasizes that the market prospects for arable farmers are excellent. The worldwide demand for potato products will increase by 2 to 3 percent per year in the coming years. The demand for sugar is also increasing.
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