Ownership models for long-term value

Who owns the land? Both at home and abroad there is an increasing number of alternative financing and ownership structures in which the focus is not on profit maximisation but on the social mission. Think steward-ownership, cooperatives and land funds. These models offer new perspectives for entrepreneurs and investors alike. This project explores how such financing and ownership models can contribute to the long-term value of land. Structuring and analysing these models provides insight into the potential and effects of 'patient capital'. This will shed light on the impact and scope of these emerging models.

Reason

In the Netherlands, land is both scarce and expensive. It is difficult for sustainable entrepreneurs to acquire land or property to develop or continue their operations. At the same time, there is growing interest in forms of financing that contribute to long-term value, such as ecological or social returns. Alternative ownership models take land or property off the market and make it available to sustainable entrepreneurs on fair terms. However, it is not yet sufficiently clear how these models work, how they are financed and what impact they have.

Objective 

This project aims to identify financing and ownership models that focus on long-term value of land. By structuring and analysing these models, entrepreneurs, investors and policymakers gain insight into the potential as well as the effects of 'patient capital'. We want to map the total acreage of agricultural land that is in steward or cooperative ownership and identify drivers of growth. We also study the impact of these structures on entrepreneurship. 

Research

The New Finance Research Group of the Centre of Expertise Digital Operations & Finance of The Hague University of Applied Sciences is conducting document research and semi-structured interviews with entrepreneurs, investors, fund managers and other stakeholders. The financing and ownership models are schematically shown in organisational charts, so that similarities and differences are made visible. The extent to which the expectations of long-term investors come true is also studied, as well as what this means for sustainable entrepreneurship.

Expected results 

The research provides an overview of contemporary financing and ownership models in which long-term value takes centre stage. By visually juxtaposing the models, their differences and similarities are made clear. It also provides insight into the impact of 'patient capital' on entrepreneurs: are they investing more in their land, immovable property or machinery? Do these models contribute to generational renewal of farmers? What is the total acreage of land owned by land funds and what factors impact growth? The results are widely shared digitally, through podcasts and bogs, and through events so that entrepreneurs, investors and policymakers can use them immediately.

Context 

Long-term value investing is one of the pillars of the New Finance Research Group. The current financial system is largely focused on short-term returns, which can limit investment in long-term value. For example, since the liberalisation of the Agricultural Tenancies Act (‘Pachtwet'), tenancies tend to be limited to one year, reducing incentives for agricultural entrepreneurs to invest in the quality of their land. Previous studies have shown that steward-owned companies outperform conventionally organised companies in the long run. This project explores whether the same applies to land ownership. 

Target audience

Entrepreneurs, (citizen) investors and landowners.

Duration of the project

1 March 2025 – 1 March 2026 

Funding

This project is funded by the Centre of Expertise Digital Operations & Finance.

Contact

Would you like to know more about the research project Ownership models for long-term value? Please contact Nina de Korte.