Agricultural entrepreneurs get a chance to be sustainable

From 1 January 2020 it will be possible for starting agricultural entrepreneurs to apply for a loan to make their business more sustainable. After a takeover, it is often not possible for start-ups in the agricultural and horticultural sector to make immediate investments in sustainability. With the guarantee from the Ministry of Agriculture, Nature and Food Quality it is also interesting for lenders to offer this loan. The scheme gives entrepreneurs the opportunity to take out a loan up to three years after take-over to invest in the company's future sustainability.

The Assets Enhancing Credit Guarantee Scheme (VVK) is part of the 'Company Takeover Fund for Starting Farmers and Market Gardeners' (formerly the Young Farmers Fund). In the unlikely event of a business going bankrupt, the State guarantees this. It is expected that this scheme will enable financiers to lend an additional € 800 million to €1 billion. The national government has €64 million available.

In setting up the scheme, Minister Schouten worked closely with the NAJK, the RVO and Rabobank.

Criteria

In order to be able to make use of the scheme, the investment plan of start-up farmers is assessed on the following criteria: closing cycles, strengthening the socio-economic position of the farmer in the chain, climate challenge, ecosystems, vitality of the countryside, animal welfare and appreciation of food. These criteria are taken from the LNV vision for the future, 'Valuable and Connected'. In addition to meeting one of the criteria for circular farming, the investments must demonstrate that the profitability of the farm, and therefore its future prospects, have improved compared to before the takeover.

Training and coaching

Of the total €75 million from the Coalition Agreement, €11 million will be made available for setting up a training and coaching programme to supervise the takeover process. In addition to agricultural knowledge, setting up or taking over a business and making it future-proof also requires knowledge of entrepreneurship on the part of start-up farmers. At the request of the young farmers themselves, room has therefore been created for the development of a programme for independent advice and guidance on sustainable business takeovers.

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