Offered: NVM Agricultural & Rural
'Real estate agents know what is needed'
Now that the conditions for the National Termination Scheme for Livestock Farming Locations (LBV) are known, the market for pig farms is moving again after years of uncertainty. NVM broker Jeroen Adams, from Adriaan van den Heuvel brokers and advisors from Helmond, explains how agricultural brokers assist farmers with the decision. And on the next step.
It was a good year for pig farmers. Lower feed prices and higher selling prices for pork in the EU have significantly boosted the companies' results after a few difficult years. "It is a good time to sell," explains NVM real estate agent Jeroen Adams. “We have already sold a few companies this year.” Last year, as was evident from the recently published half-yearly Agricultural & Rural report from the NVM, it emerged that the number of pig farms sold had fallen to an all-time low, with a paltry six transactions in the last six months. “Now that the terms of the LBV and LBV plus schemes are known, many farmers are taking the decision after years of waiting,” said Adams.
Shrink from the professional ban
In the working area of the NVM broker, North Brabant, 97 pig farms registered for the termination scheme. "Whether everyone who has registered for the LBV and LBV Plus schemes will actually be eligible remains to be seen." Adams assumes that, just as with the Livestock Farming Branches Termination Regulation (RBV) in 2019-2020, some of the applicants do not emit enough nitrogen or will still shy away from the professional ban associated with the LBV scheme. "Entrepreneurs who were already considering stopping are now more likely to stop. But not everyone wants that. Because it is not the case that you can get back to work a little further down the road. Thanks to the non-competition clause in the schemes, bought-out farmers are not allowed to farm anywhere else in the EU ."
Nevertheless, the broker is counting on enough interest for the arrangement. "Provided that the companies meet the conditions, the scheme in most cases leads to a reasonable compensation, of between 100% (LBV) and 120% of the market value (LBV Plus). That is at least as good as the market. Moreover, Farmers who use the LBV Plus scheme, which runs until April 2, 2024, will be reimbursed for the demolition costs of the stable. And, importantly, they do not have to move."
Deployment of expertise is indispensable
However, the scheme does not work out favorably for everyone. "If you have built a stable in the past five years, or renovated the inside of your stable, you will not be compensated for this," the NVM broker explains. "The scheme is based on the original year of construction of the stable, as stated in the basic buildings administration." The expertise and broad deployability of the NVM broker is indispensable in the organization surrounding the buyout scheme, it is emphasized Adams. “Farmers using the scheme must have their land valued before it is transferred from their business assets to their personal assets.”
In addition, NVM brokers also have important insights into possible (non-agricultural) repurposing, according to Adams. "Real estate agents know what is needed. Perhaps you can turn your old business premises into a multi-tenant business building, or a shelter for migrants." The NVM real estate agent, in collaboration with a spatial planning consultancy, can also legally assist you with the options within the zoning plan, or how you can change it. Although the uncertainty has decreased with the introduction of the LBV scheme, not everything is clear yet. "It remains to be seen whether there will also be a relocation scheme for farmers who do not want to stop and therefore do not want a professional ban," says Adams. "A lot will depend on the policy of the new cabinet."
Farm well with your real estate too!
Do you also want to farm well with your agricultural and rural real estate? Then choose a NVM Agricultural and Rural real estate agent. Because an NVM estate agent has a great deal of knowledge of the market, a large network in the countryside and is the specialist in purchase and sale, valuation, land and lease matters, expropriation and repurposing of agricultural and rural real estate. In addition, they are aware of the latest legislation and regulations.
