Rabobank believes that the Dutch agricultural sector should not only focus on the income from farming and horticulture but also take into account the hidden social costs that this sector entails.
This position is outlined in the new report ‘True value in Dutch agriculture: a public and private matter’ in which bank analysts emphasize that a broader view of the cost structure is necessary for a sustainable future of the agricultural sector.
Rabobank has been the largest financier of the Dutch agricultural sector for decades. However, in recent years, Rabobank has been increasingly called upon to share responsibility for the negative consequences of that industry.
In the plea, Rabobank stresses that the agricultural sector should not only look at revenues but also at the costs arising throughout the chain from producer to consumer, the so-called 'farm-to-fork' principle.
This includes not only direct costs, such as production costs and wages, but also indirect costs, such as environmental damage and health problems resulting from intensive farming methods.
Rabobank’s plea aligns with earlier calls from the European Union, various EU countries, and environmental organizations. These parties point out that the costs of cleaning up environmental pollution are still too often passed on to the government, and thus ultimately to taxpayers.
By making these hidden costs transparent and charging for them, fair and sustainable pricing is encouraged. This means farmers, producers, and consumers gain better insight into the true costs of agricultural products, including their environmental impact.
Rabobank’s stance comes at a crucial moment, as the new Dutch right-wing coalition government led by Geert Wilders is about to decide on new agricultural policy. In this coalition, the Farmer-Citizen Movement (BBB), which has strong ties to the agricultural sector, has secured important ministerial positions in agriculture, landscape planning, and area management.
The BBB has previously been critical of stricter environmental measures in farming and horticulture, making the discussion about hidden social costs even more relevant. The party also believes that the European Union should interfere less actively in national agricultural policy.
Rabobank emphasizes that both public and private parties must take responsibility for the full costs of agricultural production. Such a holistic approach is, according to the bank, essential to guarantee the sustainability and future resilience of the sector.
