Macron .'s ambition
French land protected from investors
The French Minister of Agriculture, Stéphane Travert, considers it necessary to protect the French land market from foreign investors. President Emmanuel Macron goes a step further and wants to ban the buying of land in its entirety. This should prevent a price-increasing effect.
The ball started rolling when Macron invited 1.000 young French farmers to his working palace in Paris. During a spirited speech, he made clear statements. The French government is making €5 billion available for the sector, but a significant change must take place in return.
For example, agreements with processors and customers must be improved in order to achieve more positive margins. There is also a clear ambition for fewer crop protection products and more biological alternatives. The share of organic farmland will go to 15% in 2022, compared to 6,5% at the moment.
Land market
Macron also spoke clearly about the land market. If it is up to him, it will soon no longer be possible for foreign investors to buy French agricultural land. Agriculture minister Stéphane Travert weakened that statement slightly in a television interview on Sunday 25 February.
An example is a transaction of 1.700 hectares in the Berry region, central France. A Chinese company has bought the land to grow organic wheat, and this flour is shipped to China with the help of a French factory. Chinese investors are also active in other parts of France.
English and Dutch investors are also active in France. Between the end of 2014 and the beginning of 2016, 5 transactions took place in the Indre department, in which up to 1.000 hectares came into foreign hands.
Below the radar
The president and agriculture minister Travert fear a price-increasing effect. The minister does not want to restrict the sale completely, but does want to regulate it strongly to prevent speculation. This must also prevent 'land grabs', as is happening on a large scale in Africa. A loophole allows foreigners to acquire land with the help of French companies, with these transactions going under the radar. That will make it impossible for the government in the short term.
Niels van der Boom
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