Message from the CEO, Nina Schindler
Following farmers’ unrest earlier this year, the European Commission launched a high-level Strategic Dialogue on the future of EU policy on Agriculture, composed of a diverse panel of 26 associations. The EACB was invited as the only representative of the financial sector, and I had the honour of being mandated to advance the cooperative banking perspective in the discussions.
As the EACB, we focused our contributions to the debate on the access to (private) finance and on financing the transition of farming toward more sustainable models, with the result that a dedicated chapter of recommendations was finally included in the final report comprising targeted and well-founded recommendations in these areas.
It suggests, amongst others, the creation of agri-specific benchmarks for banks to be able to measure their agri clients’ transition journey and underlines the need for reliable ESG data and streamlined reporting. It also proposes an assessment of the impact of the prudential framework on agricultural financing.
This chapter of the report certainly reflects the important role of us banks as enablers to support farmers in their transition path, to achieve environmental, social, and economic sustainability.
I look forward to furthering our work, together with our EACB Expert Group’s members, to turn these recommendations into concrete improvements. Our efforts shall contribute to safeguarding the long-term viability of the agricultural sector and enable cooperative banks to keep playing a pivotal role in financing the transition of agriculture.
3 Questions to Olof Gill , Spokesperson to Trade and Agriculture of the European Commission
Olof Gill self-describes as an Irish-grown Swede, full-time European. After years of advising policymakers at the highest levels of EU and Irish institutions, he is since September 2023, the European Commission’s Spokesperson to Trade and Agriculture.
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- All institutions are currently reflecting on a work program and on initiatives for the next cycle. Can you tell us more about the developments lying ahead?
As stated in the Political Guidelines set by President von der Leyen for the next mandate: “Europe’s quality of life depends on having a secure and affordable supply of quality local food. Farming is a core part of our European way life - and it must always stay that way. It is thanks to Europe’s 9 million farms – and the wider agri-food sector - that Europe has the healthiest and highest-quality food in the world. This is a strategic asset and means Europe is vital for global food security. Our farmers and rural areas are increasingly under pressure - from the impact of climate change to unfair global competition, higher energy prices, a lack of younger farmers and difficulties in accessing capital. At the same time, they are making huge efforts to contribute to the green transition, for instance through nature-based solutions.” The Commission will continue engaging with farmers, policy makers, civil society, stakeholders and citizens so we can build a competitive and resilient agriculture and food system.
- The Strategic Dialogue on the Future of EU agriculture has just published its final report. What do you think of the recommendations set out in the paper, and to what extent will these guide the work of the Commission in the coming months?
The Strategic Dialogue was formed by President von der Leyen in January 2024, bringing together key stakeholders from across the whole agri-food chain, including farmers, co-operatives, agri-food businesses, and rural communities; as well as non-governmental organisations and civil society representatives, financial institutions and academia. The Dialogue’s mandate was to combine different perspectives, and forge a new consensus-based approach to deliver recommendations for the future of the EU agriculture and food sector.
The report of the Strategic Dialogue will serve as an important element for the elaboration of the Vision for Agriculture and Food that will be presented in the first 100 days of the next mandate. The fact that the report has been supported by all the stakeholders, including farmers, industry, traders, NGOs, retailers and consumers is very helpful to the Commission, since it sets the basis for a consensus which is needed when approaching a wide range of policies. Thanks to this consensus, the recommendations provided by the Strategic Dialogue will be taken very seriously.
- How do you envisage the role of private finance in the transition of the agricultural sector to increasingly sustainable and resilient models? Which strategic policy decisions can better support an enabling financial framework?
Transitioning to a more competitive, resilient, and sustainable agri-food sector requires significant investments. Public support on its own will not be enough for this. Private finance also has an important role to play. Attracting sustainable private investment into agriculture is challenging and there are still barriers for farmers to access private capital. Facilitating this will be crucial to address the financing needs of the sector.
The Strategic Dialogue has provided concrete recommendations on how to move forward in this direction. The Commission is now carefully analysing these ideas that will feed into the elaboration of its Vision on Agriculture and Food to be presented in the first 100 days of the new mandate. It is particularly promising to see that the EIB Group as a member of the Dialogue is committing to strengthen its support for the agri-food value chain. In the future, we need to work with Member States and financial institutions to leverage and further de-risk private capital for the sector, unlocking new investment initiatives and public-private partnerships. This will be an important element in financing the transition to a more competitive, resilient and sustainable agri-food sector.
3 Questions to Lennart Nilsson, President of Cogeca (Copa-Cogeca)
Lennart Nilsson hails from the west coast of Sweden. He runs a mixed farm with arable crops and cattle breeding. He is a board member of the Federation of Swedish Farmers and President of a grain and supply cooperative. Since 2024, he is also serving as President of Cogeca, the umbrella organisation of agricultural cooperatives.
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- The Strategic Dialogue on the Future of EU agriculture has just published its final report. What are your key takeaways from intensive seven months of negotiations?
The Strategic Dialogue marks a significant shift towards a more inclusive and collaborative approach to agricultural policy. Many positive outcomes emerged from the negotiations and the final report, but also elements on which we will remain vigilant. First of all, all stakeholders involved recognised agriculture as a strategic asset for the European Union. The Dialogue acknowledges the vital role of agriculture in Europe and the need for food security. We had obviously a strong focus on sustainable practices. We all emphasised the importance of sustainability, under its three pillars (environmental, social, economic). The report also includes several recommendations to strengthen farmers' position within the value chain and address challenges like unfair competition and limited income, but the main positive result resides in having collectively recognised that the sector needs an increased budget to deliver on the policy ambitions, cope with the climate challenges and transform them into opportunities. The dialogue also highlights the need for adequate funding and access to finance to support the transition to sustainable agriculture. We are grateful to Nina Shindler, CEO of EACB who also brought technical elements into the discussion. We believe these elements are critical to finance transitional activities at farm or cooperative level. While the dialogue represents a positive step, challenges such as unfair competition, rising energy costs, and generational renewal remain pressing. Swift and coherent action is needed to ensure a sustainable and resilient future for European agriculture.
- President Von der Leyen committed to releasing an agri-policy roadmap, building on the results of the Dialogue. Are you satisfied that the recommended measures recommended in the paper, if implemented, will enable and support the transition of the agricultural sector to more resilient models? Which developments would you like to see prioritised?
This agri-policy roadmap should aim at creating a supportive and enabling environment for farmers and cooperatives to adopt more sustainable practices. This could involve targeted financial incentives, improved market access, knowledge and skills development, risk management tools. Providing insurance and other support mechanisms to help farmers coping with climate change and other uncertainties. As President of the European agri-cooperatives, I have been particularly glad that the Strategic Dialogue report recognises the important role that our cooperative enterprises play in strengthening the farmers' position in the value chain, and boosting the sustainable competitiveness of our sectors. Such a strong recognition needs now to be reflected in the agri-policy roadmap that will follow and supportive measures will be necessary. I truly believe our cooperative enterprises are a critical tool to project the sector towards an enhanced sustainability.
- How do you envisage the role of cooperatives and cooperative banks on the road to greater environmental, social and economic sustainability?
By leveraging their democratic structure, member-centric focus, and commitment to social and environmental responsibility, agri-cooperatives and cooperative banks can make a significant contribution to building a more sustainable future. It is not a case that the United Nations will celebrate the 2025 International Year of Cooperatives with a theme which is completely aligned to the need of accelerating the accomplishment of the UN Sustainable Development Goals. Our enterprises play a pivotal role in driving environmental, social, and economic sustainability. Their unique structure, based on democratic principles and member ownership, aligns well with the goals of sustainable development. In our sector our cooperatives not only encourage, but reward members to adopt sustainable practices, invest in renewable energy, and adopt sound and efficient use of resources. On the other hand, cooperative banks are our traditional financial partner, and can provide financing for sustainable projects. In both sectors, our cooperatives can empower marginalised communities by providing economic opportunities and promoting social inclusion. What I see in our daily work is our capability to holistically put in place actions that provide positive externalities for the social, environmental, and economic development of our society.
Reflections by Vincent Maagdenberg, Member of the Managing Board & Chief Risk Officer of Rabobank
Vincent Maagdenberg became a member of the Managing Board and Chief Risk Officer (CRO) of Rabobank on April 1, 2023. He is responsible for the management of both Financial (amongst others Credit and Market Risk) and Non-Financial Risk (amongst others Operational, Compliance and Model Risk).
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- What are your overall impressions of the Strategic Dialogue’s report? Has the Dialogue been successful in your view?
The final report of the Strategic Dialogue on the Future of EU Agriculture shows that consensus can be built among key interest from across the whole agri-food chain, even in time of polarisation around the public debate on agri-food issues. Maintaining this approach, by continuing to foster dialogue and mutual trust between different points of view can help to deliver lasting solutions for competitive, resilient , diverse and sustainable agri-food systems in the EU. Rabobank as global food and agri bank is committed to support its customers to make their business futureproof and work towards more sustainable food and energy systems. This is not a straightforward journey and requires an integrated approach. We know very well that we don’t have all the answers and solutions, but we are committed to work tirelessly to find them, in collaboration with our customers and other stakeholders. Because we also know that we can’t do this alone. This report radiates the same attitude!
- How do you foresee the next stages, ie. which challenges do you see lying ahead in implementing the Dialogue’s recommendations?
We believe that every stakeholder participating in this strategic dialogue, as well as others who would like to be part of it, should take responsibility for working on the recommendations. It was with great interest that we read the mission letter from the Commissioner-designate for Agriculture and Food, Mr Christophe Hansen. The priority will be "to strengthen competitiveness, resilience and sustainability of the agricultural sector following up on the Strategic Dialogue on the Future of Agriculture in the EU". As such, Mr Hansen is tasked with the items, which are directly linked to the recommendations formulated by the EACB in its participation in the Strategic dialogue, like: preparing a Vision for Agriculture and food (within the next 100 days), deploying a new approach to deliver on sustainability and decarbonisation, including an EU-wide benchmarking system for the agri-food sector and support competitiveness “in partnership with Member States and financial institutions, such as the EIB, to leverage and de-risk private capital”, and “supporting young farmers access to capital”.
- How will financial institutions benefit from the policy developments announced in the final report? In your view, what are the key elements needed to better enable banks to finance the transition of the agrifood sector toward sustainable and resilient models?
Cooperative banks are one of the main providers of finance to the agricultural sector and agribusiness. As such, they can be a part of facilitating a contribution to a competitive and sustainable food system. It is important to keep in mind that the resilience of the farming sector requires that equal consideration be given to the economic, social and environmental dimensions of sustainability.
Access to finance is a key factor in unlocking farmers’ and food and agri companies’ potential to run efficient and profitable businesses, to be able to invest in future-oriented practices and technologies and drive the transformation to a more sustainable form of agriculture.
To be able to offer the highest possible level of liquidity under the best possible conditions, the various private and public financing options must be considered and supported by a fitting regulatory framework. Main themes to be addressed include the treatment of ESG risks in prudential regulation; the definition of workable transition benchmarks for agriculture; and the access to reliable data.
The EU regulatory framework should incentivize investment in sustainable solutions and facilitate access to funding for all actors in the food supply chain. By activating different levers, we can strive toward a system that better accounts for the true value of healthy food and ensure a profitable and sustainable future for EU farmers. Based on its mission and vision, Rabobank is a proponent of the true value scenario as an economic model.
We try to contribute where we can. We use our industry knowledge, global networks and financial solutions to help customers transition to a more sustainable future and help to move “the system” in a more sustainable direction. As a cooperative, client-driven, all-finance bank, with customers and partners at every step in the value chains, Rabobank is well-positioned to play a meaningful role.