Biodynamic agriculture: “It’s about realism, not idealism”

Jaring Brunia may be the son of a farmer, but it was never his dream to take over the family business one day. Indeed, after his parents retired, work on the family farm ceased altogether for ten years. But blood will tell, as the saying goes, and the pull of farm life ultimately proved too strong.

Just cows and grass

“One thing was sure,” recalls Jaring. “I wanted to become a good dairy farmer. So I went round to the neighbour’s to do an internship and got more involved in the sector than I had ever been before. I started reading up and learned about how artificial fertiliser leads to soil depletion and about the disadvantages of concentrated feed and antibiotics. I basically decided I wanted to eliminate everything that’s come between grass and cows over the last fifty years. That’s why I don’t use concentrated feed, fertilisers or antibiotics.”

To qualify as organic, a farm must also meet strict fertiliser standards. For Jaring, that meant he would either have to reduce his livestock by 33 per cent or farm more land. So he chose to invest in additional acreage. Jaring has implemented a minimum eight-month outdoor grazing strategy, and his land is set to become a biotope for meadow birds.

Thanks to its all-natural approach, his dairy farm makes a positive contribution to soil quality, soil hydrology and biodiversity. These factors make the farm more resistant to drought and flooding, which in turn reduces the risk incurred by ABN AMRO as a lender.

A balanced risk analysis

“Traditionally, loan assessments are based on financial calculations and the medium term,” explains account manager Daphne Nutma-Van der Zee. “But we’re now looking to expand our criteria to determine whether a given business is future-proof. We feel our strategy to help our clients become more sustainable should strike a better balance by giving due weight to nature conservation, the climate and social impact. As an experienced expert, Jaring also advised our risk analysts.”

So is it a question of idealism prevailing? Jaring doesn’t think so: “I believe it’s about realism, not idealism. Science has made it clear we need a new approach to the way we treat the earth. Cows transform grass into milk. And I need cows for my land to generate value. With future generations in mind, I think it’s fair to say this is the only realistic and future-proof approach.”

Sympathy for farmers

Jaring says he sympathises with farmers who may not be as far ahead as he is. After all, the system itself creates obstacles. Biodynamic agriculture requires more land area, and the “debt per litre of milk” is greater than it is on a traditional farm. “If you’ve just secured financing to build a big cowshed but don’t have that much land, making the transition will be a very complex task from a financial perspective,” says Jaring.

ABN AMRO was prepared to calculate Jaring’s financing package using different methods. “There wasn’t really any other option,” Daphne explains, “seeing as Jaring’s numbers look very different from those of traditional farms. The usual models just don’t apply. That was a challenge for us, but it’s also part of the process. It’s not just farmers who are making the transition – ABN AMRO is, too.”

Accordingly, the bank has launched a pilot project to finance fifteen regenerative food and agribusinesses making a positive impact on the world around them. The project will help the bank establish criteria for future-proof risk assessment, including such ecological indicators as biodiversity, carbon sequestration, soil resilience, circularity and climate adaptation.

Believing in a positive outcome

“Not every single farmer can go organic right away,” admits Daphne, whose own partner runs a farm. “But there’s value in small steps, too. As Jaring’s case shows, when one generation retires, it’s the perfect time to take a step back and change course.”

Jaring, for his part, says, “I think it’s incredibly important to stay positive. I’m fully committed to this cause, almost naively so. But I’ve had my share of setbacks, too. The point is we have to decide what our focus is going to be. Do we look at what we could lose or at everything we stand to gain? Just think – we’ll get healthy cows, healthy soil and lower carbon emissions. I have absolute faith in nature and in a positive outcome. That’s always kept me going.”