Having to build a low-emission stable, but not sure whether the bank will give you a loan for it. More and more farmers in Brabant are in uncertainty. Rabobank’s announcement that expansion plans for nature reserves will be difficult at all has only increased those concerns. According to farmers’ interest group ZLTO, about 750 farmers around those nature reserves still need to apply for a permit. “That uncertainty is debilitating.”
As early as 2017, the province of Brabant decided that farmers should adapt their stables much earlier than in the rest of the Netherlands. That seems like a good goal right now. Due to the obligation of a low-emission barn, Brabant has good cards to meet the national nitrogen reduction by 2030. But the licensing requirement also has a downside.
The government plans, a national nitrogen reduction of 50 percent by 2030, are causing great unrest. The uncertainty as to whether companies can remain in their current position makes banks hesitant. After all, the bank wants to be sure that a farmer continues to earn enough to repay his loan. The thundercloud called nitrogen reduction entails great risks. For the company and therefore also for the bank.
“Rabobank is willing to look at new revenue models for entrepreneurs.”
Province administrator Elies Lemkes emphasizes that the province does not leave the Brabant farmers to their fate. “We are exploring how we can make companies much less intensive. Rabobank is willing to take a look at the new revenue models for entrepreneurs. This year we will also look at how we can enable as many nature-inclusive farmers as possible around Natura 2000 areas. We think it’s important that dairy farms are preserved there too.”
Rabobank is by far the largest provider of loans to farmers (80 percent). “The bank has also promised us to continue to invest in measures that will make stables emit less nitrogen. We want to see how we can achieve that as much as possible. We also have a large support network and 45 million is already available from the government to invest in emission-reducing stables.”
The unrest among farmers means that fewer applications for loans are received at Rabobank, but not in Brabant. “We will of course process those applications, because it is essential for companies to comply with the rules of the province and to be able to continue to operate in this way. That does not mean that all applications are approved, we continue to look critically.” says the spokesperson.
“Investing money with no certainty that they can stay.”
And that is where the ZLTO’s greatest concern lies. Herman Litjens: “It is still completely unclear whether they can stay where they are now. All that remains to be seen. They now have to invest in a new barn system or a less intensive operation. More land for your current livestock, or less animals on your current land. But that in turn has major consequences for the revenue model. Because the time pressure in Brabant is so great, they will opt for barn adjustments. That too is investing money without certainty whether you can stay.”
The province can be a great supporter of less intensive agriculture, but there remains a major problem: the scarcity of land.
Provincial administrator Lemkes: “We were able to offer leased land under favorable conditions for a while, but the availability of land can become a bottleneck. It really becomes a complicated puzzle. If farmers choose to stop, that land can be used again for farmers who want to stay .”
“Often enough, rules are adjusted again within a few years.”
According to Litjens of the ZLTO, Brabant is now working in the wrong order. “In the rest of the Netherlands, it is first examined in the ‘area process’ how much space there is still for farmers. After that, farmers can make choices for their future. In Brabant they have to make those choices before there is clarity. That is almost impossible to do. .”
Yet you can ask the question why so many farmers have not yet applied for that permit, while they have known since 2017 that it must be obtained.
“Many entrepreneurs wait until the last moment. Then you know for sure that you meet the latest requirements. Often enough, the rules have already been adjusted or tightened up within a few years. Farmers don’t want to run that risk.”
“Clarity from the government is desperately needed.”
Rabobank understands the concerns of farmers in Brabant. On Thursday, the bank will sit at the table with nitrogen broker Johan Remkes.
“Clarity from the government is desperately needed. And help. For example, we argue that farmers receive much better compensation for nature and water management. That really helps farmers to earn a living. We continue to consider per company whether it is responsible to to lend money. For us, it is paramount that we help farmers as best we can and also protect nature. But we still miss a lot of clarity from the government.”