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Background Emigration

Well-known destinations remain popular

3 September 2018 - Niels van der Boom

The phosphate rights system continues to ensure that dairy farmers in the Netherlands turn their eyes to other countries. The traditional emigration destinations remain as popular as ever. There is, however, a clear difference between the family business and a purely profit-driven entrepreneur.

Countries such as Germany, Denmark and Canada remain popular with Dutch farmers. Richard Roddenhof, emigration coordinator at Interfarms, on. Dairy farms are particularly popular, followed by arable farms.

Offer from Denmark
Interfarms has a wide range of Danish companies in their portfolio. "Due to the recent crisis in Denmark, many companies have come under water financially. These companies are slowly entering the market," explains Roddenhof. "The fact that the Danish agricultural sector has suffered greatly from the drought this year is not reflected in an increasing supply. It is much too early for that. Moreover, drought is an issue everywhere in Europe."

Dairy farmers in particular remain interested in our 'northern neighbours', although a few arable farmers have also emigrated there in recent years. This is because of the good ground for non-Dutch prices. "The average price amounts to about €20.000 per hectare," says Roddenhof. "Just like here, the spread is large, depending on the quality. To buy a company you need 20% equity. This makes it also interesting for smaller budgets, who can no longer invest in the Netherlands."

20.000

euro

per hectare is the average Danish land price

Tired of rules
The rights system is to blame for the halting number of investments among dairy farmers. "In short, you have to invest €12.000 per cow here. If you buy a company in Germany or Denmark, you save that money. This has ensured that the emigration plans have increased again. Farmers are fed up with the rules, and that also applies to the resulting high investment costs."

Doesn't Germany also have strict rules, especially in the field of manure? Roddenhof does not deny that: "There is sufficient land available, and therefore there is sufficient space for manure to be placed. They do not have a phosphate rights system. If your company is far enough away from the village, you can expand. A big advantage is that it is relatively continue to live close to their family; a maximum of about 5 hours drive. East Germany is looked at from 200 dairy cows. There is also enthusiasm for farms with 100 to 150 cows. moved out one mainly goes to Rhineland Palatinate or Lower Saxony."

Protected Market
Canada remains popular, but land prices there have increased in recent years. Starting a business in Canada requires more investment and equity, as the country has a quota system for dairy farming. "On the other hand, it is a very stable and fixed market. As a result, you need relatively fewer cows for the same income as in Europe", the coordinator experiences.

Those who do not have to take family into account, and look abroad purely for profit, will end up at exotic destinations. Interfarms is currently supervising a company purchase in Slovakia. With prices from €3.000 to €4.000 per hectare, Romania is also a location that attracts Dutch investors. "In France it is more difficult, but not impossible, to buy a company. There the land bank has to approve a purchase. French farmers are given priority. For the Dutch, the language is primarily a barrier," said Roddenhof.

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Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.

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