Farming has become an elite sport

West Brabant 12 January 2019

This is in response to it Boerenbusiness article:
[url=http://www.boerenbusiness.nl/column/10881012/boeren-is-een-elitesport-geworn]Farming has become an elite sport[/url]

If those 5000 farmers double their turnover, we can miss the other 45000.

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seagull 12 January 2019

With the new generation of farmers, land ownership will increasingly lie with the grower himself

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Skirt 12 January 2019

Peter Pals, you are talking about warm remediation, but the word remediation means 'to make healthy'.
The problem, however, is that the entire restructuring does not make the sector healthier at all, it only creates more debt with the survivors.
You can stuff a sector that is not doing well with debt so much that it ends up in a kind of free fall, let's hope it doesn't come to that but I fear the worst.
The banks must take their responsibility in this and step on the brakes in time.

hans 12 January 2019

Kjol, what should banks do then?
More and more farmers will stop without successors because of open borders policies and unfair competition.

Shouldn't banks then over-finance the leftovers to take over those production locations? Should they say stop, with the result that the whole house of cards of expensive land collapses, and everyone, including the bank, goes under?

hans 12 January 2019

Enough is earned from Dutch agriculture. Incidentally, enough is earned from every Dutch person. Just look at the profits on the stock market, the money that is distributed among shareholders.
The French people have figured it out: for higher wages and better facilities, they themselves, the citizens, do not have to pay. Just let the big companies pay taxes in their own country, where they make their profits.
The common man, spare the common peasant, prefer to support, and tax the glutton extra.

piggy 13 January 2019

Peter Paps probably means that farmers should stand up for themselves more.
The sellers of supplying companies (often referred to as advisers) and buyers of our customers are sent out with the same assignment: to make as much profit as possible. (This can also be read in the vacancies for those positions).
So sell products as dearly as possible and buy as cheaply as possible. These people talk to us that you don't have to want to be a farmer to get rich (read, earn a decent living). Only they can get rich. The model, quantity times price, works great for them. That is why they are so attached to production volumes, which requires an increase in scale to maintain them.
If you, as a farmer, do not position yourself well in negotiation discussions, you will earn nothing and she will earn even more.
It's crazy that companies that are technically excellent sometimes still suffer as a result of bad agreements. There is a lot of difference in earnings between companies that operate on a technically equivalent basis.
It is painful to see when a company of 1500 sows that is technically excellent cannot keep its head above water without too much fuss. And then it is taken over by a supplier. In such a situation you have financed the takeover of your own company.

Hans is right, enough money is earned in agriculture, it is just poorly distributed. And you can and must do something about that distribution yourself, this is also possible without cooperation in integrations. It is still possible today. If you can dream it, you can do it.

We have to get rid of the idea that you shouldn't want to become a farmer if you want to earn a normal sandwich. And that you want to be a farmer so badly that you would want to do it for nothing (for some people already the issue). That undermines the bargaining position of the farmer, you are then easy prey. The reality is that the periphery desperately needs the farmer to make his billions. Due to the farmer shortage you would think that we are in an excellent negotiating position, however, due to the psychological game that is played at the kitchen tables by buyers and sellers (account managers, consultants, technical specialists, wolf in sheep's clothing) we have started to think the opposite.

The most annoying thing I always find is that we produce in a way that yields the most money for the periphery. We are not allowed to receive the profit, but society's criticism of the production method is.

Karin 13 January 2019

I would like it if the periphery would allow us to apply a production method that society can also support.

hans 13 January 2019

Good story, Pig!

Only, you say you can do something about it yourself.
That will be difficult.
You can only do something TOGETHER, as farmers, as citizens so that not all money rolls into just a few pockets.
And doing something together will cost something, so you have to be ready for it.

French yellow vests balance until now:
10 deaths
50 severely maimed (lost hands or eyes)
1000 den lighter wounded
1000 arrests with 500 prevented (not only yellow vests but also profiteer destroyers)

piggy 13 January 2019

Thanks for the compliment Hans.

The idea that you can only achieve something in this area together. Has the same effect as the psychological game at the kitchen table played by the periphery. It discourages people from taking action themselves. You get the feeling that you have to wait for something. We all know that farmers are poorly organized when it comes to cooperation. So it could take a long time in that regard. The cooperation through integrations that the periphery has in mind mainly has the aim of shopping and not distributing margins. They want to change the world without changing themselves.

For pig farming, there are entrepreneurs who make a small profit or play quite well even in bad times. This is because on average they run well, but mainly because they are strong at the negotiating table and do not let themselves be sold on products that are superfluous. They know how much they are needed by the periphery to turn their activities around. And it's certainly not just the big companies. They play their negotiating position well, those entrepreneurs do not need cooperation. The worst nightmare of the periphery is when pig places disappear they don't earn anything anymore.

Thinking that it is only possible with a yellow vest raises a threshold. That's exactly what the other side wants.
I think collaboration is a great idea, let's make that clear and we have to work on that, but don't let this slow you down from achieving something individually. Don't let yourself be persuaded into a waiting / powerless attitude. Everyone calculates a cost increase in purchase and sales prices, except for some farmers because they have been talked into that that is not possible / that's just how it works.

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Skirt 13 January 2019

See Denmark (overfunded).

hans 13 January 2019

It's a bit different in the Netherlands.
Denmark has
- much less air in the land price
- (still) Dutch farmers to solve their problems.

of platings 13 January 2019

Little pig, only the largest companies, say 250 cows, 5000 pigs or 1000 sows, see this as a lower limit, have something to say in their negotiations. The rest, say 90% of the farmers have nothing to want. They should only hope for a good year with regard to the market and nothing else.

of platings 13 January 2019

Piglet, what makes the difference in income even greater is that the benefits given to the big customers are taken away from the other smaller customers, because they pay these jokes, not the director of say the feed factory. So it works double.

Skirt 14 January 2019

In NL there is already a lot of air in the agricultural land price. But we will see that in due course.

kalf 14 January 2019

Apparently, throughout history, politics/government has always become anxious when the farmers are doing well.

bookscook 14 January 2019

kjol wrote:

In NL there is already a lot of air in the agricultural land price. But we will see that in due course.

Dear Kjol, that air is not too bad, that is cackling from the non-buyers.
If you see that rents are paid between 1200 and 3000 € per hectare by tenants, then the calculation to buy is not so bad, return of more than 2%, where can I get that with such certainty? That land will still be there in 30 years and there is a good chance that I will receive a few % annual return as a gift from the possession alone. What then is the sky that everyone is talking about. Yes, if you don't make a crop yield or have too expensive machinery, then you think the neighbors think you're a good farmer, but then you never get any equity to buy. But there are also colleagues who do things differently.

Berry 14 January 2019

@BookeskookU forget, like many others, that repayments also have to be made. In the 90s you could cross out the rent against interest repayment. That's not even remotely feasible now

Ton Westgeest 14 January 2019

Is bookeskook right there is a lot more inflation than they would like to believe. Look at the house price, land, rent, just look at a kilo of cheese, that's about twenty guilders converted. They have to because they all live on a lot of debt and inflation.....

jpk 14 January 2019

The acm a government implementer must be limited on sales agreements between growers. See onion drama

Skirt 14 January 2019

I do see inflation on the buy side, not the sell side. I understand very well that there is a lot of resistance to the statement that land is currently too expensive, and there will probably be some mathematicians who have a very low cost despite having bought very expensive land. This does not justify closing one's eyes to the current artificially increasing factors that are driving up land prices. There will be a major correction that will kill many, this is not new and has happened more often in the past.

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3897 14 January 2019

Land prices simply evolve in line with houses and other real estate prices. If you think land is too expensive, don't buy it. If you want to remain a farmer, you just have to buy something every 10 years, no matter how difficult or expensive it is. We measure inflation incorrectly, we measure it with prices of products that have become relatively cheaper due to globalization. We are more or less fooled. In the past, the value of money was linked to precious metals, later through a very anti-inflation policy of the German bank. Nowadays money is a politically driven (southern) european medium of exchange. My view as much land as possible with as much debt as possible, this is a good way to stay ahead of actual inflation.

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Skirt 14 January 2019

Even if a bird can fly, it has to land again on Earth. The same is true with currencies.

1956JL 15 January 2019

@vanplatingen that has no longer only to do with the size of the company. Companies with feed debts, for example, really cannot just switch feed supplier (they are often the larger companies where suppliers and buyers have an interest in the company). Furthermore, suppliers and buyers will advise a way of working that yields the most money for them, not for the farmer. So it is not just the margin where it is earned.

from binsbergen 15 January 2019

@vanplatingen I don't think a feed factory will be happy when 90% percent of the customers (the little ones) walk away or stop. Certainly not when they have to earn the benefits for the large customers. So they definitely have something to want.
The statement that you only earn or can influence when you grow up is commercial talk. That should keep the small farmers obedient (which means negotiation). And stimulate growth in order to compensate for the shrinkage.

Large or small of both groups are companies that earn a nice living. Both groups also have companies that are struggling to earn a living. But I think that's entrepreneurship.

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