Project
Financiele duurzaamheid
This project contributes to mission D 'Valued, healthy and safe food', and within that to MMIP D1 'Value creation and earning capacity (MMIP D1), with an emphasis on earning capacity. Financial resilience and access to finance are important preconditions for agricultural entrepreneurs to be able to (continue to) invest in and earn from sustainable agriculture. The results of this study are included in the approach to sustainable agro-financing (milestone harvest list minister / H1 Strengthening earning capacity) by the Ministry of Agriculture, Nature and Food Quality.
Entrepreneurs in agriculture and horticulture experience various financial risks when switching to more sustainable business practices, which makes some farmers reluctant to switch. The success of the transition to more sustainable agricultural and food systems, in addition to an entrepreneur's ability to generate sufficient income with sustainable production, also depends on the (financial) resilience of agricultural entrepreneurs to face risks. In most cases, farmers need access to financing to be able to continue investing in (innovation for) the further sustainability of the sector. At the same time, there are serious signs that access to external finance will only become more difficult in the future (Basel IV). This research, which started in the second half of 2021 and will continue in 2022, aims to provide insight into the financial risks entrepreneurs experience when switching to a more sustainable business, which instruments are available from the government and which instruments entrepreneurs need to mitigate these risks. The focus of the research to be carried out in 2022 is to make an estimate in advance of the impact of the most promising options for the government.