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Opinions Jasper Carpenter

A gap year for farmers

16 August 2024 - Jasper Timmerman - 31 comments

The last few weeks have felt good again. The sun is shining exuberantly and the summer feeling is deep within us. For farmers, August is the month of harvest, as a reward for all their effort. It is also a time when many families go on vacation. Just do something different and leave it alone. Summer is beautiful, that's for sure.

But while the sun puts a golden glow on everything, there are plenty of worries that don't just disappear. Research by LTO, for example, shows that 80% of dairy farmers suffer from manure disposal problems. Manure disposal costs have increased by up to 50% this year. A 'heavy cart to pull'. Fortunately, the milk price has also risen, but that offers limited relief. The situation is not much better for arable farmers. Far too much water has fallen since October last year, which has seriously hampered the harvest. Planting and sowing this spring did not work, what now? The yields are low. For wheat, for example, yields are low, while normally they can be almost double. Many plots with mediocre beets, potatoes and onions give little hope of top yields. The corn also gives little reason for enthusiasm.

Gap year
Perhaps we should consider harvest year 2024 as a gap year. A year in which we do not set the bar too high, but focus on survival and adjustment. Gap years are apparently not just for students who want to broaden their horizons or work on their personal development. Research shows that such a year can actually be very valuable for making better choices for the long term. It provides space to reflect, to think about what is really important and then to continue with new energy and insights. In addition to entrepreneurs doing this themselves, parties such as agricultural organizations also do this. Recent reports from that corner, for example about solving the manure crisis, give encouragement.

Let's face it, such a gap year is certainly tough for the agricultural entrepreneur. It can also turn out well. It offers the opportunity to take a step back, look at business operations, reconsider the strategy and possibly shift focus. Perhaps this is the time to also invest in personal development. To build self-confidence and broaden horizons. Try to pause, reflect and evaluate. Then to continue with a renewed vision and approach, full of good courage.

foundation
As mentioned, 2024 does not seem to be the year of top harvests, but it could be the year in which the foundation is laid for a stable and successful future. Sometimes it is more important to work on the foundation than to want to see immediate results. The proverb 'if you want to reap, you must sow' applies almost literally. Let us use 2024 as a year of reflection and preparation, so that we can move forward stronger and more resilient.

Jasper Carpenter

Jasper Timmerman is a senior advisor at Farmers Funding & Advice. He specializes in tax optimisations, restructuring, business transfer, family business and financial guidance.
Comments
31 comments
Subscriber
Flevo farmer 16 August 2024
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/column/10909999/een-buitenjaar-voor-de-boeren]A gap year for farmers[/url]
Nice to read something different for once! I experience it that way myself; you constantly adjust your expectations. It has already gone from: this won't work at all, to: Maybe the price can make up for it to: We'll see, keep costs low, survive and look to 2025. You notice that everyone is more or less in the same boat, that's okay. some rest.
loom 16 August 2024
?? we're not going to pay the bills with that... and who will pay off the bank??? a hopeless farmer should simply make a profit for all the risks and costs he incurs, so some more of the mega profits of the industry cannot go to the farmer
Subscriber
flevoboer 16 August 2024
Then you have to try a little harder, pancake. plenty of choices! stopping is one of them.
Subscriber
seagull 16 August 2024
Can we throw away all the bills that come in a gap year?
Campaign 16 August 2024
I have already resigned myself to a loss of more than 5 figures. Now try to get the plots in the best condition before 2025 with green manure and correct soil cultivation. What has been sown and planted, try to make the best of it.
Subscriber
January 16 August 2024
what do you mean, loss, free seed potatoes are simply quite expensive
Subscriber
in hiding 16 August 2024
jan wrote:
what do you mean, loss, free seed potatoes are simply quite expensive
And free potatoes automatically come at a lower price. Patience is a virtue.
loom 16 August 2024
flevoboer arrogant comment, we have no control over the prices, man
Subscriber
flevoboer 16 August 2024
grower wrote:
flevoboer arrogant comment, we have no control over the prices, man
Who do you want to blame for this? The sector itself needs to look in the mirror.
Subscriber
juun 16 August 2024
flevoboer wrote:
grower wrote:
flevoboer arrogant comment, we have no control over the prices, man
Who do you want to blame for this? The sector itself needs to look in the mirror.
As long as farmers continue to grow after the market, they will do it themselves.
loom 16 August 2024
From the sidelines it's all nice and easy to say, you're from the Flevo, for sure
Subscriber
juun 16 August 2024
Well, the quotation is based on past work.
Subscriber
flevoboer 16 August 2024
grower wrote:
From the sidelines it's all nice and easy to say, you're from the Flevo, for sure
which sideline? highest land costs in the entire country..
Subscriber
Ruud 17 August 2024
flevoboer wrote:
grower wrote:
From the sidelines it's all nice and easy to say, you're from the Flevo, for sure
which sideline? highest land costs in the entire country..
Also highest yields with the least effort in the entire country!! Back in your cage you.
Campaign 17 August 2024
Kempen wrote:
I have already resigned myself to a loss of more than 5 figures. Now try to get the plots in the best condition before 2025 with green manure and correct soil cultivation. What has been sown and planted, try to make the best of it.
I'm not talking about prices here, I can live with those fluctuations. This concerns the plots that could not be cultivated or could not be cultivated too late due to flooding. Estimates that 10% here have still not been cultivated.
Subscriber
juun 17 August 2024
Ruud wrote:
flevoboer wrote:
grower wrote:
From the sidelines it's all nice and easy to say, you're from the Flevo, for sure
which sideline? highest land costs in the entire country..
Also highest yields with the least effort in the entire country!! Back in your cage you.
Well, I think that's not too bad either. especially in the south, almost all of it is heavy clay. and reels are almost always spinning there.
Subscriber
January 17 August 2024
grower wrote:
flevoboer arrogant comment, we have no control over the prices, man
If you grow smartly and freely, both seed potatoes and consumption, and deliver quality, you can control the price yourself
January 2 17 August 2024
I wouldn't know how to manage that. I have more than 25 hectares of free potatoes, nice, coarse, healthy, etc., but don't exceed 12.5 cents. Waiting longer doesn't make sense. So this is out of your control, if only it were that simple
Subscriber
brrr 17 August 2024
Jan 2 wrote:
I wouldn't know how to manage that. I have more than 25 hectares of free potatoes, nice, coarse, healthy, etc., but don't exceed 12.5 cents. Waiting longer doesn't make sense. So this is out of your control, if only it were that simple
That makes you think. Did you not see this price dip coming when you purchased the seed potatoes? Drive them in...
Subscriber
juun 17 August 2024
Well, if you grow from the field you can know that there does not have to be much oversupply and they will cause the price to drop completely. otherwise they will simply wait a little longer before starting up the factories. only potatoes are added anyway.
brrr 2 17 August 2024
what stupid nonsense here..... of course you can't know what it will be when you buy the seed potatoes, otherwise we would have been in the quote 500 for a long time, smart guy. You cannot enter an early variety Zorba/Premiere, it has a shelf life of only a few days, it is not sprayed to death, and its varieties are not suitable for, if only it were that simple, I will tell you more, more than 1,5 months ago I thought the price became one euro per /kg when I stood up to my knees in water for the fourth time, draining water between the potatoes. I have never experienced an extreme spring and growing season like this and I am in my 60s. If this year had been in the 80s they would have been 2 guilders and now today it works the other way around. This top and bottom mega risk means more growers have to replant for the second time in Brabant/East Brabant. This is mentally very difficult, leaving aside the financial aspect, how double can it be, the processor is sloshing against the skirting boards with us as a grower having to spend money 2 years in a row, I have never experienced a plot or 2 lying fallow myself.
Subscriber
January 18 August 2024
Jan 2 wrote:
I wouldn't know how to manage that. I have more than 25 hectares of free potatoes, nice, coarse, healthy, etc., but don't exceed 12.5 cents. Waiting longer doesn't make sense. So this is out of your control, if only it were that simple
by growing varieties that you can also store, otherwise you are growing for the chip farmer
Subscriber
It can freeze or thaw 18 August 2024
brrr 2 wrote:
what stupid nonsense here..... of course you can't know what it will be when you buy the seed potatoes, otherwise we would have been in the quote 500 for a long time, smart guy. You cannot enter an early variety Zorba/Premiere, it has a shelf life of only a few days, it is not sprayed to death, and its varieties are not suitable for, if only it were that simple, I will tell you more, more than 1,5 months ago I thought the price became one euro per /kg when I stood up to my knees in water for the fourth time, draining water between the potatoes. I have never experienced an extreme spring and growing season like this and I am in my 60s. If this year had been in the 80s they would have been 2 guilders and now today it works the other way around. This top and bottom mega risk means more growers have to replant for the second time in Brabant/East Brabant. This is mentally very difficult, leaving aside the financial aspect, how double can it be, the processor is sloshing against the skirting boards with us as a grower having to spend money 2 years in a row, I have never experienced a plot or 2 lying fallow myself.
I completely agree, many people also thought that prices would be sky high, that yields would be mediocre, we accepted that because the high prices would fully compensate for this. The reality looks completely different, sky-high costs with mediocre returns and very disappointing prices so far. And many companies are already experiencing liquidity problems
Subscriber
flevoboer 18 August 2024
Isn't it just a business risk you take by growing a variety that you have to sell off-shore? Pretty hopeless negotiating position
Subscriber
It can freeze or thaw 18 August 2024
flevoboer wrote:
Isn't it just a business risk you take by growing a variety that you have to sell off-shore? Pretty hopeless negotiating position
Entrepreneurship is indeed (sometimes) taking risks, there are still growers who until recently had their shed full of potatoes and onions because they thought it would happen in August!!! Are you a bad entrepreneur then? Sometimes you are lucky with an early variety, but not now, you also see it in the carrots, the early varieties are now being spread out in a number of cases.
Subscriber
flevoboer 18 August 2024
sure, but it was responded with; who pays the bills then? yes uhh, hello..
Subscriber
It can freeze or thaw 19 August 2024
flevoboer wrote:
sure, but it was responded with; who pays the bills then? yes uhh, hello..
You have a point there, this will be a year to limit losses as it seems now. It is a pity that income averaging is no longer possible!!! In the past, this was a nice instrument to flatten the highest peaks and deepest valleys.
south-east 19 August 2024
easy to talk to, Flevoboertje, most of you are tenant farmers. I understand if you have had 2 bad years in a row and a lot of water damage and now this price is not proportional to the misery in the field, I would also be very concerned about who/how you can pay the bill yourself, that seems quite normal. me, if not then it doesn't matter to you and you are not really concerned with your (own business).
Subscriber
flevoboer 20 August 2024
south east wrote:
easy to talk to, Flevoboertje, most of you are tenant farmers. I understand if you have had 2 bad years in a row and a lot of water damage and now this price is not proportional to the misery in the field, I would also be very concerned about who/how you can pay the bill yourself, that seems quite normal. me, if not then it doesn't matter to you and you are not really concerned with your (own business).
The rent has actually increased considerably, so you simply have to pay it. I don't get your point, but I don't think you do either
south-east 20 August 2024
I get it, but if you are on a privately owned farm, you are in a very different position than when you rent a plot and your farm, a completely different world. don't try to be a fat neck with nothing flevo farmer, you think you know everything better when you come here in south-east Brabant you will go crazy at 300 length 5 different soil types
Subscriber
It can freeze or thaw 21 August 2024
south east wrote:
easy to talk to, Flevoboertje, most of you are tenant farmers. I understand if you have had 2 bad years in a row and a lot of water damage and now this price is not proportional to the misery in the field, I would also be very concerned about who/how you can pay the bill yourself, that seems quite normal. me, if not then it doesn't matter to you and you are not really concerned with your (own business).
There are also quite a few (partially) owned companies in Flevoland. I understand your point about frustration about the water damage, you see the harvest slipping through your fingers. I don't know exactly how bad it is everywhere, but that's for sure there is a lot of damage. I assume at my store that I will harvest 30 to 40% less in kg than normal, so the bill will be drawn up quickly. Then I ignore the price of the products.
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