In a recent interview with Nieuwe Oogst, Prof. dr. ir. Joost M.E. Pennings, Professor of Marketing at Wageningen University & Research and the University of Maastricht, discussed the impact of volatile markets and import tariffs on the agricultural sector. He emphasized that fluctuating prices and increased costs, without corresponding higher revenues, elevate risks for farmers. This heightened uncertainty leads financial institutions to impose higher risk premiums, making new investments more expensive. Prof. Pennings highlighted the importance of minimizing capital costs, especially during periods of market instability, to ensure the sustainability of agricultural enterprises.
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