Uneasy and unworkable

'Liberalized leases disastrous for agriculture'

June 30, 2017 - Clarisse van der Woude - 11 comments

The lease system implemented by the national government, whereby farmers can bid on plots of agricultural land, leads to tension and unworkable situations. It writes about FD Wednesday.

The newspaper spoke to arable farmer Arnold Michielsen, leaseholder portfolio holder for LTO Nederland, about the 1.400 hectares issued by the Central Government Real Estate Agency in September. The current tenants are allowed to bid, but have no guarantee that they will be reassigned the land. For the same money - or better: for a little more money - the neighbor takes it off. Because, Michielsen knows, farmers will not fail to bid, even if they know they are duping a colleague. "That's bad blood." 

Lost ground. Plans for Expansion in the Trash 

Unworkable situations
Furthermore, sometimes unworkable situations arise. For example, a farmer in the Noordoostpolder who leased half of his acreage on a regular basis and the other half liberalized lost the liberalized part because other entrepreneurs wanted to pay more rent. As a result, his plans to expand his livestock were discarded.

There are also examples of farmers who invested heavily in converting land to organic cultivation and then had to relinquish the land to someone else after an auction, who would do something different with it.

Liberalized lease 'disastrous for the agricultural structure'
Michielsen calls liberalized leasehold 'disastrous for the agricultural structure' for several reasons. Not only will a farmer invest less in the land if he has only had it for 4 or 6 years, but also young people will not get a job, because no bank will want to finance their business. All too insecure. As a result, plots of farmers who have no successor and who quit are added to the remaining farms at the auction.

Mediator Sicko Heldoorn will submit a report within a month. He has heard all parties separately and advises State Secretary Martijn van Dam in order to impasse between tenants and lessees.

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Comments
11 comments
Joop June 30, 2017
This is a response to this article:
[url=http://www.boerenbusiness.nl/ondernemen/grond/ artikel/10875021/geliberalised-pacht-desastreus-voor-agriculture][/url]
Still don't get the problem, why are there entrepreneurs who pay such high prices for that land. You're hanging on to Rvob. You have the land for a few years, investments before that are risky.

If you're willing to pay the highest price, then buy land.
Berry June 30, 2017
I do not understand why the lessor does not first try to agree on a new lease price with the incumbent lessee. The sitting tenant is unceremoniously knocked over. Did those sitting tenants do something they shouldn't? Did they not do their job well? A landlord who treats tenants like this is unreliable. But we are used to that from our government.
JRdB June 30, 2017
Just leave it alone with that ground. Let them root for themselves and earn nothing
Dik June 30, 2017
JRdB wrote:
Just leave it alone with that ground. Let them root for themselves and earn nothing

As long as there are farmers who pay these absurd prices, I would not start farming as a landlord, I think if there were no Dutch farmers in the world, the land prices worldwide would be 20 to 30% lower
Fortissimo 2 July 2017
@Fat; So I don't think so at all. NL is just a piece of fluff in the agricultural world. We march like a mouse over the bridge with the elephant; What are we stomping on it? Abroad, a rent is paid that is related to the demand for land in that region. There is plenty of usable agricultural land worldwide, of which it is indeed no longer being made, but the growers make a well-considered decision at what price they want to use. In the Netherlands, there are apparently different considerations for some, and that leads to lease prices for which some farmers/growers cannot grow a profitable crop. Maybe 99% it isn't.
polder farmer 3 July 2017
In Southern and Eastern Flevoland, soil mobility is extremely low. Buying is often not an option because there is hardly anything for sale! Speaking of sitting tenants: in most cases this is the Erf foundation, the last Kolkhoz in the Netherlands, a state company that presents itself as a private agricultural company through a BV form. It is high time that the land portfolio was cleaned up. Unfortunately, the mechalomaniac management sees nothing in this. Just trying to get more fingers in the door. (see the project new nature Flevoland) Where land from farmers would be bought and Flevolandscape could benefit from this together with Erf. At the expense of the incumbent farmers.
Simon 3 July 2017
It is not the liberalized lease that is the problem, it is the auctioning of it.
if 3 July 2017
Farmers must be equally sensible. Excessively high rents hinder sustainability. And that's something the government wants. The government has an important role here. The higher the rent, the more intensive farming is required. This is not good for agriculture in the long run. †
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Flevo Farmer 3 July 2017
Polderboer wrote:
In Southern and Eastern Flevoland, soil mobility is extremely low. Buying is often not an option because there is hardly anything for sale! Speaking of sitting tenants: in most cases this is the Erf foundation, the last Kolkhoz in the Netherlands, a state company that presents itself as a private agricultural company through a BV form. It is high time that the land portfolio was cleaned up. Unfortunately, the mechalomaniac management sees nothing in this. Just trying to get more fingers in the door. (see the project new nature Flevoland) Where land from farmers would be bought and Flevolandscape could benefit from this together with Erf. At the expense of the incumbent farmers.


I agree with you vehemently, for more than 10 years this glorified state company has been leasing out land to maybe 5 bio friends who pass each other the ball. corrupt gang.

It would be so much better to use vacant plots for structural improvement of the Flevopolder.
farmers buy plots of land remotely because there is almost no land mobility!!
The Board of Directors is instructed to only bring a lot of money into the fire, and opportunities for relocation and reparcelling are thus destroyed.
Nop 3 July 2017
Here in the nop tenant of the state 24 ha total company leased by, sublease is 70 years old lives in a large house in the village Construction plan 4 ha tulips 4 ha chicory 4 ha carrots 4 ha barley 8 ha potatoes Is a member of lto
Nope 3 July 2017
Nop wrote:
Here in the nop tenant of the state 24 ha total company leased by, sublease is 70 years old lives in a large house in the village Construction plan 4 ha tulips 4 ha chicory 4 ha carrots 4 ha barley 8 ha potatoes Is a member of lto


Where is this landlord located? Would like additional acreage. Will it be willing to rent it out for 2250 per ha??

With free registration this lot already costs me 2700 minimum with mandatory rotation. So better go now!

People we all want more, one has an Eem successor, the other has capacity left in the shed or in machines. The other had to give up land again. Ultimately, everyone is their own boss whether or not due to buy or lease. Please respect everyone. So don't start writing jealous lyrics!!

Success with the cultivation 2017
villain out... 4 July 2017
in the village will be urk
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