Two-thirds of farmers must seek financial care. The revelation comes from Rick Hoksbergen of Alfa Accountants in Leeuwarden.
Translated by Thomas Ansell
As reported in the Omrop Fryslân, the Leeuwarden-based accountant said “two thirds of farmers have a real squeeze on their finances. Of these, around half turn their financial situation around, whilst a third continue to see invoices and bills piling up.” According to the accountants, not every farmer will make it through the next year.
Hoksbergen added that the coming winter will ease pressure on farmers, “that’s a period with significantly lower costs, and indeed income. It gives the opportunity for farmers to plan and consider. But I fear that it won’t be an easy period for everyone. If you look at Denmark, you’ll see poorly performing businesses fail. In the Netherlands I have not seen this in livestock farming, and nor do I predict it in the short term. But I do see enforced strikes coming.”
Which businesses does Hoksbergen see as potential problems?
“Namely, businesses that do not have efficient control over their inputs. Also, extensive businesses might see difficulties arise if they have to maintain a large amount of land. If they see dwindling returns compared to keeping the land for milk, or nature, or management packages then they may also have some trouble. But also those who have stables and barns that sit half-empty, whilst there is pressure on the business-side, and where the revenue doesn’t exist. Such businesses will have it very difficult in the coming months.” Hoksbergen stopped short of predicting which businesses might fail in the next year.
Image via Pixabay user Greg Newman
