News Farmland
Tenants reject proposal for new lease system
The Association of Land Tenants and Own Land Users (BLHB) does not support the proposals for the new lease system. According to them, these do not lead to longer leases, sustainable soil management is not guaranteed, it does not help young entrepreneurs and it will weaken rather than strengthen our agricultural structure. "We have been arguing for years in favor of promoting long-term lease contracts. Instead, the minister is taking a completely different route."
Agriculture Minister Carola Schouten presented a 'Main outline letter for the revision of the lease system' on March 22, 2019. After that a long period happened not very exciting regarding the revision of the lease system and only recently did the minister announce that she would like to discuss this with the stakeholders before the end of the year. The aim is to come up with a proposal for a legislative amendment in early 2021. The proposals for the revision of the lease system have been discussed in private with the parties in the field. According to the BLHB, that is the wrong choice. "The subject requires transparency," the organization writes in a response.
Complete freedom of contract
That is not the only point of criticism of the Bond van Landpachters on Minister Schouten. For example, the proposals are not at all in line with what the organization itself had in mind. The Ministry of Agriculture, Nature and Food Quality wants complete freedom of contract for all contracts longer than 6 years (both in terms of price and conditions). Short-term contracts do have a regulated price, with the exception of cultivation lease contracts. "This does not strengthen the agricultural structure, but weakens it," emphasizes Hans Meijer, acting chairman of BLHB.
In the eyes of the union, a lease contract is still a short-term contract. "If I come to the bank and I say I have 40 hectares with a term of 6 years, the bank says that I better come back when I have something with a term of 30 years. In short: it stays this way difficult to get financing," said Meijer. The minister also stated that this version of the lease system promotes the influx of young farmers. BLHB does not understand this argument. "Full liberalization will not help young farmers. Young farmers now have to operate in an open market of supply and demand. They lose out against wealthy companies."
According to the BLHB, this version of the lease system completely contradicts the minister's views. "We have proposed to approach it in a different way: the longer the contract, the more freedom can be offered. Now she has set the cut at 6 years." The statement recently made by the Central Ground Chamber also plays a role in the criticism of the BLHB. "Liberal contracts may soon be terminated prematurely if this is included in the contract. This will mean that in many cases those 6 years will probably not be achieved," explains Meijer.
'Consultation is more for fun'
Since the Association of Land Tenants and Own Land Users does not support the ministry's initial proposals, it has refrained from further consultation. "We are prepared to consult with all parties, but it must make sense. If we receive an update from the minister in brief that does not contain much sensible information and that is the starting point, then it feels a bit like a waste of time. must really be a consultation and not something for the stage," concludes Meijer.
Kimberly Baker
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