Many young farmers would like to be independent, .... but it is now so difficult to finance, that the dream - in many cases - remains as a dream.
'As things are today'; the young farmers have three options to be the boss of own farming: They are either privileged with a solid starting capital, they are starting in the very small .... or they think alternatively.
The size of competitive agricultural farms as of today means that a young farmer must have millions of Euros to buy a farm. On top comes the capital needed to start and operate the production itself. Amounts which a very few young farmers have on the account.
Before the financial crisis there was a lending euphoria to agriculture. Interest rates were low and land prices the same. There was optimism in society. This the financial crisis put to an end and the banks closed for the credits. They became much more cautious when it came to credits to young farmers who want to become independent with its own agriculture.
The hardest is simply to mobilize enough money to finance the transition to become an independent farmer.
’These are a new times’, which requires that young farmers must think in new ways if the dream of own farm and own fields must be realized. One must be open for, that the way is not necessarily the same as it was 20 years ago. We urge young farmers with ambitions to seriously to consider new and alternative models for real estate acquisition and new ways of thinking agriculture.
We find it constructive to consider the way to own farm in stages rather than in the traditional all-or-nothing perspective. To invest in production first and use ones knowledge and production potential can be an interesting start. Then one can invest in the land when one has consolidated the operation. The composition of the investment can be built up differently, each weighted differently, depending on the investment profile and ambitions.
A sensible way forward may be to lease and operate a farm, which already is in private possession, and to agree a right of first refusal on certain conditions. This allows you as a young farmer to utilize and further develop your professional knowledge and skills, while another is the owner of the estate. One should thus, in the beginning, only invest in the production equipment and can so easier put up in a feasible size. One can profit on the operations, consolidate and prove to the bank that the project is profitable before investing in the expensive hectares. It can be an attractive idea to invest its future, or a period of one's life, abroad, where the framework conditions for agriculture maybe a bit more lucrative.
There is in these times opportunities due to an ongoing generational change.
We have brokered agriculture since 2003 and have contacts with several local farmers who are willing to lease out their farm. After a period of e.g. five years, where one have had time to consolidate, one can use ones right of first refusal and possibly begin a smooth takeover.
There are a variety of investment opportunities. We broker mainly farming with more than 500 ha, but we can offer solutions of all sizes.
Contact us; so that we can find the best solution for you:
phone: +45 5136 1495,