Mainstream and alternative sources of finance in Dutch agriculture

Research output: Chapter in Book/Report/Conference proceedingConference paperAcademicpeer-review


In this paper mainstream and alternative sources of finance in
Dutch agriculture is analysed. Dutch farmers make use of
different sources of finance whereby bank loans continue to
serve as the major source of debt financing. The average bank
loan was approximately 740,000 euro per farm in 2015 while
equity amounted 1.8 million euro per farm. Traditional family
loans amounted about 60,000 euro per farm. Recent
developments in, and examples of, alternative sources of finance
indicate that the diversity will increase in the future, whereby
various forms of financing will be used simultaneously. This can
also be of interest for mainstream banks since their funding
capacity is becoming more restricted as they are required to
retain more capital to comply with the Basel Accords. The
prospects for crowdfunding in agriculture are promising for
projects relating to sales in niche markets. The relative low
return on equity in agriculture indicates that private equity or
venture capital is often not a viable option.
Original languageEnglish
Title of host publication21st International Farm Management Congress Vol. 1, 2nd - 7th July 2017
Subtitle of host publicationFuture Farming Systems
Number of pages15
Publication statusPublished - 2017
Event21th International Farm Management Congress - Edinburgh, United Kingdom
Duration: 2 Jul 20177 Jul 2017
Conference number: 21


Conference21th International Farm Management Congress
CountryUnited Kingdom


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