Colleges explore guidance for agricultural farm acquisition

When taking over a family farm, young farmers face major challenges, financial and emotional. Creating a profitable business model that takes into account new social issues, such as the call for more sustainable agriculture, also requires good advice and guidance. Seven colleges are going to investigate what advice and guidance is needed to make these farm acquisitions successful.

The research is being conducted in cooperation with a large number of partners, including the Dutch Agricultural Young People's Association (NAJK), MBO educational institutions, Wageningen University and Research, consultancy firms and dozens of agricultural businesses. The studies are made possible by the Ministry of Agriculture, Nature and Food Quality and Regieorgaan SIA.

The goal of the studies is to design a renewed infrastructure of advisory services for company takeovers, with which 80% of all Dutch company takeovers will be supervised in 2023. This applies to acquisitions within the family and by lateral entrants. Advice on other business models and the need to respond to new demands that a critical society makes on agriculture are given extra attention in the study. This in addition to the social-emotional aspects associated with the acquisition of a family business, competencies, skills and the financial path of acquisition.

Four regions

For the studies, the Netherlands is divided into four regions, with the results shared between the researchers. In each region there will eventually be a Knowledge Centre for Business Takeovers. In North and East (colleges Aeres and Van Hall Larenstein) the research focuses primarily on the dairy farming and arable farming sectors. The presence of horticulture within an urbanized environment, in West (Inholland University of Applied Sciences) offers other opportunities (sales close to home) and challenges (a critical public) and possibly places different demands on the guidance. The context of many highly intensive companies is an additional focus of research for South (HAS University of Applied Sciences). In North (NHL Stenden, Van Hall Larenstein, Windesheim, Aeres University of Applied Sciences), the researchers are also creating a "serious game" that will allow users to go through the entire acquisition process virtually. During the course of all studies, research results are used directly in education. For example in Zuid, where HAS University of Applied Sciences together with the MBO will provide new input for education.

In addition to these four regional studies, two general studies are being done. Namely a study into the specific needs for guidance of lateral entrants (Utrecht University of Applied Sciences, Aeres University of Applied Sciences). And one to socio-emotional guidance in family acquisitions (Windesheim, Van Hall Larenstein and Aeres Hogeschool).

HAS University of Applied Sciences has a number of partners to achieve good and useful results with this research. These include six agricultural entrepreneurs, the four agricultural MBOs in the south (Helicon, Curio, Cita Verde and Scalda) and partners from the consultancy practice (ZLTO, Arvalis, Abab and Exitus). In addition, FoodUp! of the Province of North-Brabant and the Province of Limburg are partners in this project.

Planning

The planning is that after the summer a start will be made to inventory the experiences of various agricultural entrepreneurs with regard to the acquisition of a business. In this context, fourth-year students who are preparing to become entrepreneurs or agricultural advisors, among others, will set off.

In a second phase it will be investigated where improvements can be made in the process of taking over a business. Then there will be room to experiment with new or renewed forms that contribute to making the takeover more successful in the short and long term.

In the second phase there will be a review of the possibilities for improvement in the process of the takeover.

Koos Dekker is the project leader from the HAS and the first point of contact. He can be reached at 06 23648336 or by email K.Dekker@has.nl.