News Rabobank
Rabobank tightens the reins on financing
When applying for financing or refinancing an agricultural company, Rabobank will take a closer look at the future prospects of the farmer in question. This tightening of lending follows the presentation of nitrogen plans by the cabinet last week, which aim at a reduction of livestock by approximately 30%. Sources within the bank report this Boerenbusiness† The exact details of the plan are not yet known, but Rabobank will probably release a statement later today.
Last night a rumor circulated on various app groups that there would be a financing freeze for entrepreneurs in the dairy, pig and poultry farming sector. Sources say that this is not the case, but that various adjustments are being made. The nitrogen plans are the concrete reason for this, because they limit the business prospects.
Rabobank does not want to lose much at the moment. When asked, the bank writes: "The plans of the ministers hit hard. We see and hear that around us. And we understand that. That is precisely why the door is open to farmers and agricultural entrepreneurs with us. And it remains open for a a good conversation about the future of the company, that is very relevant now. Loans that we provide must contribute to an entrepreneur's perspective and make the sector more sustainable."
'Planning supported within one year is ambitious'
The bank further refers to a press release on the website about government plans. It states that the bank considers it ambitious that provinces must come up with supported plans within one year to reduce nitrogen by up to 90%. Wiebe Draijer, chairman of the Rabobank Group Management Board: "The imposed focus on nitrogen reduction and stoppers creates resistance. While we should do it together. We are already doing this together with politicians and entrepreneurs in a number of provinces, where we talk about a supported area-oriented approach, with an eye for the farmer's earning model and for nature.Rabobank would like to do this together with our partners in all provinces are doing. It's about helping the farmer and protecting nature."
For Rabobank, the contraction does not have to be greater than strictly necessary. "After all, reducing the number of animals should not be a goal in itself, but one of the means to achieve the nature, water and climate goals. In addition, Rabobank is asking for attention and financial unburdening for quitters."
Perspective remains underexposed
According to the bank, what the perspective is for farmers who can continue to do business is an underexposed issue. "What will the agricultural landscape look like for them in 2030?" Moreover, Rabobank believes that all sectors should contribute. So not only agriculture, but also sectors such as industry and aviation. Finally, Rabobank advocates an integrated approach: in addition to nitrogen, there are also clear targets for maintaining water quality and climate. "Only with complete clarity will farmers be able to invest and do business again."
Higher contribution for innovation
Draijer: "Farmers need a good revenue model to be able to become sustainable and innovate in the long term. This is possible with a government that focuses on clear and measurable goals and leaves room for entrepreneurs themselves how to achieve this. We find a higher contribution from the transition fund for innovation is necessary, for example to realize sustainable stable adjustments. Finally, fair compensation for nature and water management is essential for a vital and sustainable countryside. A healthy sandwich for the farmer offers perspective for those who stay."
Linda van Eekeres
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