Large agricultural companies buy up farms

This article was last updated on November 12, 2024

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Large agricultural companies buy up farms

Large agricultural companies are buying up farmers on the Veluwe. This also includes farmers who had registered for the government’s buyout schemes. Sources within the agricultural sector report this Broadcasting Gelderland.

This includes companies such as Van Drie, which is part of veal producer VanDrie Group, and animal feed company Klaremelk. Both groups acknowledge that they are buying up farms.

They do not want to say how many farms are involved. “It concerns several veal farms with which an agreement has been concluded and some with which discussions are being held,” a spokesperson for Van Drie told the broadcaster.

The government has set up buyout schemes to encourage livestock farmers to close their businesses. There is a buyout scheme for peak loaders (companies that emit a lot of nitrogen near a vulnerable nature reserve), and livestock farmers that do not.

Peak loaders can be bought out for 120 percent of the value of their company. Other livestock farmers can receive up to 100 percent of the value of their company.

The measure is intended to reduce the number of livestock farms. This reduces nitrogen emissions, thereby better protecting vulnerable nature.

Retain modern stables

The current buyout schemes are more interesting for farmers with relatively new stables, because they are worth more. Van Drie and Klaremelk indicate that they want to preserve modern stables by buying up farmers. “To achieve the sustainability goals that we have agreed on as a sector, it is desirable to maintain stables that are future-proof,” says Van Drie.

Klaremelk believes that the current purchase scheme is ‘capital destruction’. “It seems as if the government wants to buy and demolish as many modern stables as possible, which are a lot more sustainable than older stables. It is possible that due to the purchase scheme, mainly old stables will remain. They will then disappear automatically. This way, in the long term, no sector will remain. more about it,” says the spokesperson.

The spokesperson for Klaremelk admits that it is also in the interest of the group to keep as many stables as possible. “Of course. The point is that we can continue as a company in the future.”

Sources tell the broadcaster that the two companies are offering more money than the government. This makes it more attractive to sell to them, also because – unlike the national purchase scheme – the stables do not have to be demolished with that money and the farmer is not banned from working. They can even continue to run their business while employed by Van Drie or Klarenmelk. Both companies do not respond to questions about this.

Minister recognizes signals

Minister of Agriculture Wiersma says he recognizes the signals about purchasing agricultural companies. “Every farmer who voluntarily ends his or her business has the freedom to choose how. The goal of this government is not to have as many farmers as possible stop, but we want to support the farmers who want to stop.”

According to the minister, the nitrogen targets are not jeopardized because agribusinesses buy up farmers. “Only if this were to happen on a larger scale, and we are not aware of that, would it have an effect on the nitrogen reduction that we achieve through schemes.”

She does say that chain parties are being held accountable for their responsibilities. “As far as we are concerned, buying up companies for our own production continuity is not part of that.”

It is not new that other parties buy out farms. Farmers have previously been bought out by De Schiphol Group and Rijkswaterstaat. The extra nitrogen space that became available was used for: the airports or make it possible of the widening of the A27.