Rabobank helps farmers invest in a more sustainable future
In the Netherlands, there is considerable uncertainty about the future of agriculture. Yet many farmers and growers choose not to wait. They’re preparing their businesses for the future themselves. With a financing package of 3 billion euros, Rabobank supports farmers and growers who are already customers. Whether they choose extensification, conversion, innovation, relocation or termination: there are suitable financing solutions for all transition paths. This also applies to farmers who want to transition to an even more sustainable business.
Financing the Agriculture Transition
In 2023, Rabobank published the Vision for agri-food 2040, a vision for a financially healthy food and agriculture sector in 2040. Making businesses more sustainable is a key aspect of this vision. To help farmers and growers achieve this, Rabobank established the financing package. By offering loans with lower interest rates and more attractive terms, we encourage farmers and growers to transition toward sustainable energy, circular production, biodiversity, and reduced emissions.
Farmers clearly are committed to sustainability: of the 3 billion euros made available at the end of 2023, 1 billion euros had already been financed two years later. This shows that many entrepreneurs are actively working on sustainability.
What are farmers investing in?
Most farmers (85%) use the loan to purchase land. This helps them adjust their operations or improve soil quality to farm more in harmony with nature. Dairy farmers can use extra land for extensification, which means they give their cows more room. Arable farmers can grow more diverse crops to build healthier soil. Nearly 10% invest in innovation such as:
Another 5-10% of farmers choose new activities alongside their main farming business, such as childcare, care farms, or organic production.
SME Sustainability Contribution
Entrepreneurs can also receive up to 10,000 euros cash-back on their investment from Rabobank, under certain conditions. This is called the SME Sustainability Contribution. To date, customers in the agricultural sector have invested 160 million euros in sustainable projects. Rabobank returned 15 million euros of this to the entrepreneurs. 53% was paid out to customers in the livestock sector, 19% to arable farmers, and 18% to horticulture customers. Entrepreneurs used this money mainly for solar panels, energy storage, and electric vehicles.
Working together toward the future
Carlo van Kemenade, member of Rabobank’s executive board:
The financing package and the SME Sustainability Contribution are part of the vision for the sector’s future. Together with partners, we’ve launched additional initiatives, such as a biodiversity monitor and a soil index to track soil quality. In collaboration with the National Green Fund, Rabobank finances businesses that contribute to food transition, climate solutions, and nature restoration through the Rabo Transition Fund.
The result
These initiatives show that farmers and growers are actively investing in their future. Despite uncertainty about regulations and policy, they’re making their businesses more sustainable. With support from Rabobank, they’re building a sector that’s ready for the future.