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Agricultural sector

Law Firm in the Netherlands specialised in Agricultural sector

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The agricultural sector is constantly changing. Sustainable agriculture and concern for animal welfare make new demands on the balance between environment and economy. Farms face new rules on size ("factory farming"), manure processing and rural homes. Furthermore, entitlements and lease prices affect the business. Lease and expropriation laws are also constantly developing and farms and municipalities can face lengthy negotiations on the conditions under which the redevelopment of rural areas can take place. A large number of cases that influence the development and production in the agricultural sector.

The over 60,000 companies engaged in the sector, but also government agencies, land agents, manufacturers of agricultural machinery and individuals active in agriculture, may therefore encounter various legal questions. These may be issues in the field of private law, such as lease, contract law, liability and expropriation, as in the field of public law in relation to increasing legal prescriptions and permits. Moreover, specific tax regulations apply to the agricultural sector.

Therefore, CMS has a specialist team for the agricultural sector consisting of lawyers and tax consultants who specialise in the various areas of law affecting the sector and who have an affinity with the rural area.

The team advises and assists clients in litigation on topics including:

  • land use (ownership, ground lease, tenancy, land reparcelling)
  • contract law
  • expropriation law
  • (government) liability
  • business succession
  • law of succession
  • livestock improvement
  • planning and development
  • permits
  • subsidies
  • nature conservation law
  • environmental law
  • production quotas
  • tax law

The specialist team also act as arbitrators and organise regular seminars for clients to keep them informed on current developments in the agricultural sector.

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CMS European Real Estate Deal Point Study 2021
The COVID-19 pandemic has left its mark on the European investment market. Investment volumes were around 23% lower than in the previous year, 2019, with its record performance. Buyers focused primarily on properties with stable income and those only minimally affected by the pandemic. The number of transactions in which steps were taken to ensure the buyer met its financial obligations was at a record high. The trend towards more buyer-friendly arrangements continued. Those are the key findings of the CMS European Real Estate Deal Point Study 2021. For the latest edition of this survey of the European real estate transaction market, international commercial law firm CMS systematically assessed and evaluated more than 1,900 real estate agreements on which it advised in countries across Europe from the beginning of 2010 to the end of 2020. The key find­ings:In­vestors focus on stable incomeThe COVID-19 pandemic led to a change in investor interest in the individual asset classes. Buyers focused primarily on properties with stable income and those that were only minimally affected by the pandemic. Logistics and residential properties were especially popular. Office real estate remained the strongest asset class in Europe, but its share of the market fell to a record low of 30%. Demand for retail properties remained at a consistently low level (15%). Logistics real estate performed particularly well, posting a rise to 19% , a new record. The proportion of investment going into specialist properties such as hotels fell significantly (14%). Residential real estate proved popular with investors, with its share rising to 22%. Sellers taking steps to ensure that buyers meet their financial ob­lig­a­tionsDur­ing the pandemic, an increased need for security on the part of sellers was apparent. The proportion of transactions in which steps were taken to ensure the buyer met its financial obligations rose to a record high of 64%. In previous years, security was agreed in less than 50% of all transactions. This high level is due to the increased desire for security on the part of sellers as a result of the pandemic; they were often uncertain about the buyer’s solvency going forward. As a means of providing security, both bank guarantees (17%) and a notary’s escrow account (10%) became less popular. In many cases, in contrast, the buyer made an advance payment (29%). In 9% of transactions, use was made of submission to immediate enforcement. Risk allocation in contracts: buyers catching up in a seller-friendly marketBuyers were able to strengthen their position further in 2020 with regard to risk allocation in contracts. In a market environment that remained very seller-friendly, they succeeded in obtaining favourable contract terms more often than in previous years. As part of the warranty, guarantees were again agreed more often in favour of buyers. The percentage of agreements with individual liability provisions increased to 75%. It was common practice to provide for both subjective and objective guarantees. The proportion of deals with seller-friendly limits on liability, such as de minimis and basket clauses and caps, dropped slightly below the prior-year level in 2020. The upward trend seen over many years in agreements aimed at limiting liability has thus been curbed somewhat, while buyers were able to negotiate more favourable contract terms more often than before. Buyers also prepared ground with regard to the contractual provisions on limitation periods. An increasing number of limitation periods from 18 to 24 months were agreed in 2020, while there was a slight fall in the proportion of short limitation periods of up to 18 months. National investors more prom­in­entIn­t­er­na­tion­al investors had a tough time in 2020. While international sellers have been responsible for the majority of deals since 2017, their percentage dropped back down to 43% in 2020, with national investors becoming more active. National investors accounted for 48% of deals in 2018, while in 2020, 57% of real estate investments were made by national investors.
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