Outgoing Agriculture Minister Piet Adema is making 240 million euros available for young farmers (and gardeners) who start or take over a business. This concerns both European and national money. The amount will be paid out through various subsidy openings up to and including 2027. The first opening will be from June 3 to August 2, 2024 and amounts to 75 million euros, with a maximum of 80,000 euros per applicant. The Ministry of Agriculture, Nature and Food Quality announced this on Wednesday.
“I am very happy that we can do something for young farmers who are just starting a business or taking over a business,” says Adema. “Hopefully the 80,000 euros will provide just that little bit of support to get through the first period financially and have a nice to create a future-oriented farm. We desperately need young entrepreneurs in agriculture, they are the future and bring a lot of new knowledge and innovation.”
Business plan
Young entrepreneurs who want to apply for the subsidy must submit a business plan with the application that describes the economic and ecological goals for the next five years. The business plan must contribute to the sustainability goals in the areas of climate, nature and water quality.
The scheme is part of the Common Agricultural Policy (CAP) and is known as ‘Setting up aid for young farmers’. The amount is a sum of European (74.65 million euros) and national resources (163 million own resources). Farmers who made a business takeover after January 1, 2023 can also submit an application.
Indispensable
The ministry writes: ‘Young entrepreneurs are indispensable for a vital countryside. The innovation they bring is important for the future social, economic and ecological sustainability of rural areas, food security and strategic autonomy in the Netherlands and the European Union. That is why young farmers have an important place in the CAP-NSP. They experience a major hurdle when starting or taking over, because companies have a relatively large purchase price (partly due to land value), but at the same time low profitability. To reduce the financing burden for that period, ‘Establishment support for young farmers’ has been included in the CAP-NSP.’
In addition to the establishment support, there is also another subsidy from the CAP especially for prospective young farmers and gardeners. For example, 1.25 million euros is available for ‘Working together on generational renewal’ for the period 2023-2027. This scheme is for young farmers and lateral entrants who are interested in starting a farming business (possibly together). LNV: ‘Partnerships can apply for a subsidy for projects that test innovative concepts that make agricultural land and agricultural entrepreneurship more accessible to (potential) young farmers.’
The ministry is also working with the Dutch Agricultural Youth Contact (NAJK) on a ‘Business Takeover Knowledge Center’, Adema reports in the press release as well as to the House of Representatives.
