Inside Pigs
Sales of pig farms are boosted by pig price
Because the pig price has risen sharply recently, the sale of pig farms has picked up, according to various agricultural brokers. Until recently, supply was greater than demand, but the situation has changed. The revived interest in fattening pig farms is the greatest.
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The economic decline in sow farming has been greater in recent years than in fattening pig farming. This means that there is less money to invest in propagation, compared to fattening pig farming. "This part of the pig sector is also seeing profits rise faster," says Hans Peters, chairman of the Agricultural Real Estate section at VBO Makelaars. "Globally, it is expected that pork prices will stabilize at a higher level than in recent years."
There are reports of many pig farms being sold, especially in the East of the Netherlands. For example, companies have already been sold in Zevenaar, Tussender and Winterswijk this year, various real estate agencies report. Indicatively, €350 to €375 is paid per fattening pig place. KWIN Veehouderij uses amounts between €500 and €630 per fattening pig place for new construction. This guide from Wageningen Livestock Research is mainly used for tax purposes.
Nitrogen Approach Program
It is not only the condition of the buildings and furnishings that determines the value of a pig farm, because the associated permits and the business economic results also play a role. Peters does note that any permits cannot currently offer any guarantees due to the problems with the Nitrogen Approach Program (PAS).
Can the development opportunities that are currently on paper actually be used? This remains the question until a solution is found. Peters assumes that the impending reorganization of pig farming can provide a solution to the problems with nitrogen emissions. The PAS legislation, on the other hand, is insufficient and legally unsustainable, the Council of State ruled in June.
Without a permit with prospects, companies have little value. However, the value of pig farms may be positively influenced by the current PAS problems by offsetting with companies in the area that will close down in the foreseeable future. If this is not an option, Peters expects a significant write-down.
Devaluation due to vacancy
Pig farms that are empty are often more difficult to sell than companies that are taken over as a going concern. This is partly due to the lack of current business economic figures and the costs that must be incurred to restart a propagation company.