Abstract
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.
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 language | English |
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Title of host publication | 21st International Farm Management Congress Vol. 1, 2nd - 7th July 2017 |
Subtitle of host publication | Future Farming Systems |
Number of pages | 15 |
Publication status | Published - 2017 |
Event | 21th International Farm Management Congress - Edinburgh, United Kingdom Duration: 2 Jul 2017 → 7 Jul 2017 Conference number: 21 |
Conference/symposium
Conference/symposium | 21th International Farm Management Congress |
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Country/Territory | United Kingdom |
City | Edinburgh |
Period | 2/07/17 → 7/07/17 |