What is the case?

With the Ministry of Agriculture, Nature and Food Quality's (LNV) vision for circular agriculture, the food transition is undeniably on the political agenda. However, a real breakthrough has yet to occur. The transition to circular agriculture will only happen if its profitability sufficiently competes with the old system. Therefore, it is important to strengthen the profitability of the business models of circular agriculture. This way, companies gain more competitive power, circular agriculture becomes more attractive to the rest of the sector, and the examples contribute to the transition.

Many circular agriculture businesses are indeed successful! Innovative farmers implement circular agriculture systems on their farms, Agricultural Collectives collaborate with governments on area proposals, and Landowners work with their tenants on new business models. The challenge is: how can we strengthen these initiatives to achieve fair and strong earning models for circular agriculture?

What is the project doing about this?

In this project, we seek critical success factors for the profitability of circular agriculture and calculate their impact on the business model. At the same time, we support initiatives for the implementation of circular agriculture. The applied research group is involved in initiatives in three areas:

• In Northern Netherlands, we collaborate with the collectives Noardlike Fryske Wâlden, Collectief Groningen West, and Collectief Midden Groningen.
• In the Achterhoek region, the collective VALA is working within a Common Agricultural Policy (CAP) project on a new collaboration model at the regional level, the 'Markemodel,' and the community farm 'De Patrijs' is developing a new earning model.
• In the IJssel floodplains, the estates Middachten and Twickel collaborate with their tenants on a joint area proposal within the Natura 2000 area of the floodplains.

In the project, we work with these and other stakeholders to learn from past area proposal models, to determine what an area proposal looks like that contributes to profitable business models for entrepreneurs, how circular agriculture on a farm contributes to a new economic model ('Farmers' Donut'), and how new short supply chains contribute to circular agriculture.

What does the project deliver?

• An overview of different types of area proposals, the associated processes, and institutional anchoring.
• Models for an area proposal and how these contribute to the profitability of agricultural entrepreneurs.
• Insights into critical success factors for business services in circular agriculture and in organisational and contractual forms of circular agriculture, including perspectives on organisation, risks, and financing in successful cases.
• Insights into personal critical success factors (values and leadership qualities) of the entrepreneur and their team, and successful methods and underlying critical success factors; distinguishing between the influence of external (environmental) and internal (business) factors.