Deep Roots

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In search of the oldest

family farm in the Netherlands

Dutch Ministry of Economic Affairs in association with Dr Ilse A. Matser, Professor of Family Business Management,

Windesheim University of Applied Sciences and Anne-Marie Rops, Editor at Dutch Federation of Agriculture and Horticulture

“Family businesses have a promising future in farming. These

enterprises are the backbone of food production, not only in the

Netherlands but all over the world. I am proud of this centuries-

old tradition of farming in which families show their attachment

to the land they farm, their animals or their products. The

contest of the oldest Dutch family farm will give us the name of

an old farming family with a long-standing tradition. But young

entrepreneurs have the future; that is why I supported the special

measures for young farmers in the new Common Agricultural

Policy of the European Union.”

Sharon Dijksma

Dutch Minister for Agriculture

he business landscape in the Netherlands consists

of a rich mixture of firms with a majority of family

firms. In the agriculture sector this prevalence is

even stronger, with an estimated figure of 87 per cent

family firms. In research, education and policymaking

there is a growing interest in the unique challenges this

group is facing.

The family is a central stakeholder and its influence on the busi-

ness is of crucial relevance for both the firm’s identity and its

success. To gain a better understanding of its unique character-

istics, the family firm can be analysed as an open-systemmodel

comprising three overlapping, interacting and interdependent

subsystems of owners, family and employees. The overlap of

these three systems indicates that individuals have up to three

roles simultaneously. With each role comes different obliga-

tions, interests and goals which can conflict with each other. As

a family member, the prime concern is the welfare and harmony

of the family. As an owner, the focus is on ensuring stable

returns on investments and the continuity of the firm. As a

manager, the primary interest is the firm’s operational effective-

ness.

The family business system is dynamic since individuals’

roles and positions change during the life cycle stages of the

individuals, the family and the business.

Family farms can be considered as firms where the family

factor has a relatively dominant influence. This relates to

the context in which the firm operates. In the Netherlands

almost all farmers live on their farm, so family life and busi-

ness are highly intertwined. The farm is dependent on the

family members for its labour force. It is not uncommon

for multiple generations to live on the same grounds in a

relatively remote area. This means that the family is rather

isolated from the rest of the world and that its identity and

culture has a strong influence on the business. The family

often has a long tradition of farming with a strong attachment

to the profession. Furthermore, farms are capital-intensive,

making the succession process complicated. The difficulty of

succession is one of the reasons why the number of farms has

dropped sharply in recent decades. Finding a suitable and

willing successor, within or outside the family, is becoming

increasingly difficult.

Besides the family factor, the sector faces many business

challenges. Producing more with less resources is a crucial

development if Dutch farmers want to maintain their world-

wide top position as food producers. Therefore, the sector

focuses on innovation in sustainable food systems to produce

high-quality food using fewer resources. The sector aims to

promote a varied and healthy diet, partly with new products

that meet the wishes of consumers. Small and medium-sized

enterprises play a crucial role in all these innovations, particu-

larly when it comes to applying new knowledge. The sector

wants to strengthen the Netherlands’ leading position on the

world export market by offering expertise and technology,

as well as food, to areas with underdeveloped agriculture

and food production. To achieve these ambitions the sector

needs sufficient qualified professionals and innovative entre-

preneurs. Therefore the sector turns to young people – the

professionals and entrepreneurs of the future – to give direc-

tion to these changes. Since most of the entrepreneurs of the

future will stem from the family resource pool it is of utmost

importance for the sector that the next generation of farmers

have what it takes to run a family farm. This brings us back

to the family factor.

For long-term prosperity of the family business it is widely

acknowledged that the system requires positive outcomes

in both the business dimension and the family dimension.

Sharma argues that recognition of the intertwinement of

family and business leads to the definition of high-performing

family firms as organizations that take financial and non-

eep

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