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Financing expansions more difficult after nitrogen letter
It has become more difficult to finance expansion investments since the letter of June 10 from nitrogen minister Van der Wal. Anything that has a nitrogen or Natura 2000 shade hanging over it is a talking point. Matters such as phosphate purchases are sometimes extra strict.
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Banks confirm this in response to signals from the market. Not all banks follow the same line. In principle, the whole picture is always considered when financing, it is emphasized. Yet sometimes matters such as financing phosphate rights tend to fall by the wayside.
A hard no is not liked to be expressed. The banks indicate that 'the door always remains open' and that the possibilities in individual cases are always examined.
Banks want more clarity from the ministry
Moreover, they also find it difficult to assess exactly which assessment framework they should use. That is why, in further consultation with ministers Henk Staghouwer (LNV) and Christianne van der Wal (Nature and Nitrogen), they asked for clarification of the frameworks. But there is no real clarity yet. In particular, there is a lot of uncertainty about which areas will face additional restrictions.
Maybe stricter than necessary
This situation means that the banks may be more cautious than may later prove necessary, it can be heard. On the other hand, they want to prevent farmers from being saddled with financing costs that cannot be recouped. This means that banks often do not last as far as entrepreneurs would like.