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News Lease Policy

Schouten introduces new lease form

22 March 2019 - Anne Jan Doorn - 12 comments

The contours of the new lease rules were presented by Minister Carola Schouten (Agriculture, Nature and Food Quality) on Friday 22 March. It introduces, among other things, a new, long-term lease. In particular, Schouten wants to encourage long-term leases and sustainable soil management.

Schouten registers a letter to Parliament that this long-term lease form will become the new standard. The shape should contribute to continuity and make it easier for farmers to make long-term investments. The new lease form means that the maximum term for short-term liberal leases will be deleted. The tenants and lessees must also be given more freedom to agree prices among themselves.

At the same time, short-term leases are also made less attractive. How exactly this will be discouraged is still unclear. The minister mentions various options for this, such as the option to only allow short-term leases in special cases. Maximum prices could possibly be set for this, or a kind of price test (based on the average market prices for long-term leases).

Better appointments
In addition, Schouten wants better agreements to be made between the lessor and lessee. At the moment, lessees of regular lease have few options to set requirements for a good soil policy. The minister wants to change this. The minister is considering, among other things, broadening the options for lessors to terminate the lease contract in the event of unauthorized sublease.

She sees the letter to parliament as a guideline for the new lease legislation. According to this new policy, a draft bill will also be drafted this year, which will be drawn up in collaboration with the Minister for Legal Protection.

Letter was expected
Schouten's letter to parliament had been delayed for a while. The rough lines that the minister has now presented are not surprising. The ministry has already promised several times to commit itself to long-term lease relationships. According to the minister, the introduction of the long-term lease fits in perfectly with this.

According to Schouten, the current system is not efficient, because currently often short-term lease contracts are concluded. These contracts often have high prices, in particular due to the scarcity of land and liberal pricing. The current regular (long-term) lease contracts are less interesting for lessors, because the prices for regular leases are lower due to current legislation.

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Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.
Comments
12 comments
Student 22 March 2019
This is in response to it Boerenbusiness article:
[url=http://www.boerenbusiness.nl/grond/ artikel/10881791/schouten-introduceert-nieuwe-pachtvorm]Schouten introduces new form of lease[/url]
So the long-term lease has to yield more to be interesting, so it becomes more expensive.
DD 22 March 2019
Or short-term lease cheaper, to make a difference.
organic house 22 March 2019
Only lease to organic farmers, because they handle the land very sustainably.
Subscriber
January 22 March 2019
Organic farmers have the highest co2 footprint!!
dane 22 March 2019
organic are the biggest polluters of the soil!!! plenty of copper. and let the ground deteriorate which can never be repaired so is bread robbery of good grounds
poderpipo 23 March 2019
Biohouse wrote:
Only lease to organic farmers, because they handle the land very sustainably.
Wtf biohuis, the farmers who farm organic here in Flevoland use a more intensive construction plan than most common colleagues.
Subscriber
Peter van der Eijk 23 March 2019
Minister Schouten considers it important that the existing regular lease contracts are respected.
bull 23 March 2019
I don't think the minister really understands why there are so many short-term leases. The lease price is not the main reason for this, that is the certainty that you, as the owner, retain control!
The argument for going to a lease form that enables the tenant to make long-term investments is proof that as a land owner you will lose out in a dispute about termination.... People have always done this in the past and it will be no different in the future.
??? !!! 23 March 2019
What I consider important is the law of inheritance.
Is it still of this time that a child of a tenant has priority over everyone else when the tenant stops?

I don't think contracts are hereditary!
Weakest in the chain. 23 March 2019
Short-term thinkers fight the regular lease (read long-term lease incl. substitution), long-term thinkers who also know how it used to be, fight the short-term lease.
If one involves his earlier generations with all the ups and downs, then we return to the old lease rights so that the HOUSE MILKERS can be stopped
Not 23 March 2019
Only for solar panels so 1300 lease 10000 yield rental is 8700 net for 15 years, I say give me 100 ha lease I buy a Tesla.
Berry 23 March 2019
You will never catch that 10000. Electricity prices are falling fast. Demand decreases. Generating capacity is increasing rapidly.
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