Government supports start-up farmers with credit

On January 1 of this year it will be possible for starting agricultural entrepreneurs to make use of the 'Vermogendversterkend Krediet' (VKK) scheme. This allows additional investments to be used to make the agricultural or horticultural company future-proof.

Guarantee

The VKK is part of the 'Business Acquisition Fund for starting farmers and horticulturists' (formerly the Young Farmers Fund). Beginning farmers can apply for it within three years of starting or taking over the business. It is a guarantee scheme, which means that the State guarantees 90% of the credit provided in the event of bankruptcy. With the VVK, the entrepreneur pays 1% commission on the loan.

Circulating agriculture

The investments must comply with the vision of the Ministry of Agriculture, Nature and Food Quality "Valuable and connected". This includes various criteria relating to the transition to circular agriculture and the safeguarding of Dutch food safety. For example, as little emission of harmful substances as possible, use of raw materials and end products with as few losses as possible, animal welfare and ecosystems.

Application

Farmers and horticulturalists can make use of the scheme through Rabobank from 1 January 2020. Rabobank applies for the guarantee for VKK through RVO. More information about the VKK can be found on the website of RVO.