Who wants to take over the farm?

An important reason for selling the farm is the fact that there is no successor to the farm. According to figures from Statistics Netherlands, 60% of the farms where the head of the farm is 55 years or older has no successor in the starting blocks.

The above means that the business succession issue will be on the table at around 10 companies over the next 15.000 years. But what options are there?

1. Son or daughter
There is still a son or daughter who thinks the sale of the farm is a shame, and who is ready for a career switch or has room for a 'side job'.

2. Collaborate
On the farm, there is still about 10 years of cooperation with an entrepreneur from outside the family, who 'works' in the company. After that period, this entrepreneur buys the company and the farmer moves to live elsewhere.

3. Sell
The farmer or farmer's wife is happy that there is no business successor and sells the business at a relatively young age. They choose to live/work in a nearby village.

4. Business takeover
The farmer or farmer's wife finds it a pity that there is no business successor and believes in a business takeover. They continue to invest and keep the company viable. They only sell the company at the last minute, to make sure that there are no more alternatives in the family sphere.

5. Decrease
The farmer or farmer's wife is slowly phasing out the agricultural activities. They occasionally sell land or animals and in this way it becomes easier and easier, but they continue to live on the (hobby) farm. They often want to continue to live in the place of their ancestors.

More possibilities?
Maybe there are more possibilities† However, it is a fact that in the period between 1980 and 2017, approximately 91.000 agricultural and horticultural businesses have disappeared. This means that on balance 7 companies have stopped on an average day. Nevertheless, agricultural production rose and the CBS almost every year a record in the export value of agricultural products.

In short: fewer and fewer farmers' shoulders are responsible for higher production. I am curious how many successors will come forward in the next 10 years to take over a farm. It is a tough challenge on many fronts.

Cor Pierik

Cor Pierik is a spokesperson at Statistics Netherlands (CBS). He mainly writes blogs about current facts and developments in the agricultural sector. Pierik can also be seen regularly in the 'BB Facts' section.

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