News Rabobank
Farmers apply for 40 percent less credit
Not only Rabobank is cautious about extending credit to farmers, farmers themselves are also hesitant to take out loans with all the nitrogen uncertainty. Farmers applied for 40% less credit last year. This became clear this morning (February 9) during the explanation of Rabobank's annual figures by the new CEO Stefaan Decraene and the financial boss (CFO) Bas Brouwers.
Although Rabobank's total Dutch food & agri portfolio has grown by 12% to €40,4 billion, the credit outstanding with livestock companies has shrunk slightly in 2022. Most of the money is owed to dairy farmers: €7,6 billion. In 2021 that was €8 billion. The amount outstanding in pig farming will fall from €2022 to €1,2 billion in 1,1. Cattle farming accounts for €850 million in the loan portfolio. That was €890 last year. The increase in the total food & agri portfolio is mainly due to the processing industry.
Livestock farming is in the list of riskier loans. In this respect, the bank is more conservative with new lending, explains Brouwers. Livestock companies account for €7,1 billion of the loan portfolio. An important reason for this is the nitrogen crisis. The CFO notes that the portion classified below was twice as high in the previous half year. "We took a closer look at what the activities are, how they are doing and how far they are from a Natura 2000 area," says Brouwers. "But it remains a matter of time, we don't know what will come of the agricultural agreement."
Perspectives for farmers who want to move forward
The CFO does not want to comment on how things are going at the tables where Rabobank discusses the agricultural agreement. "It is difficult to anticipate this. Yes, we understand that we as the Netherlands have to do something different. At the same time, we want prospects for farmers who want to move forward, who want to extensify and innovate. We also want things to be arranged properly for those who stop."
To the question of Boerenbusiness whether loans are still being provided to livestock farmers at all, Brouwers says that this is still the case, but that a future-proof revenue model and a contribution to sustainable agriculture are being looked at. "It is logical that there is a more critical look when it comes to nitrogen emissions, especially in Natura2000. We have to take a critical look, also in the interest of farmers. We also see that farmers themselves apply for 40% less credit." He emphasizes that Rabobank's organic market share - contrary to what many people believe - is just as high as the share in the rest of the agricultural sector.
Making Rabobank a clean bank
The new CEO, Stefaan Decraene, who started in January, kept a low profile during this press conference. He did make it clear that he is not the type who needs a hundred days and wants to lead the bank directly and make it a 'clean' bank in Flemish, 'one of the best'. About how he looks at the agricultural sector, he said: "There are a number of attention files, including nitrogen. That has come up in all conversations, including with the Supervisory Board, so I have not fallen off my chair. you look at Rabo, then the b and o stand for farmers. That is in our DNA. We try to look for a solution with the entire chain and are currently training about fifty people to work with farmers to see how the transition. It's an important market share and we'll continue to do so."
Linda van Eekeres
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