03 September 2026 | 3 min.
a.s.r. real assets today introduces Transition Ground Lease (Transitie Erfpacht), becoming the first landowner to do so. Through this new form of ground lease, the ASR Dutch Farmland Fund supports farmers in transitioning to more sustainable business operations, such as organic or regenerative agriculture. By waiving the ground rent for up to two and a half years, spread across the first five years of the contract, farmers gain financial room in the initial phase to invest in this transition. With this discount, a.s.r. real assets aims to accelerate the shift towards more sustainable agriculture and thereby contribute to healthier soils, cleaner water and healthier food.
Transition Ground Lease provides financial flexibility during the period in which agricultural entrepreneurs need to make additional investments to improve sustainability and transition their operations. This is achieved, among other things, by not charging the farmer ground lease costs for up to two and a half years. This strengthens the farmer’s working capital position. Farmers can choose how to spread the discount across the first five years of the contract. Thereafter, the regular ground rent payments commence for the remainder of the lease term.
Dick van den Oever, fund director of the ASR Dutch Farmland Fund: ‘We are seeing growing interest among agricultural entrepreneurs in switching to sustainable business models. A lack of financial headroom can be a reason to postpone this transition. Transition Ground Lease can make a real difference by providing both flexibility and confidence. It is very encouraging to see our investors support our sustainability programme with an investment perspective of more than 20 years and share our ambition to play an active role in making Dutch agriculture more sustainable.’
At the end of 2021, a.s.r. real assets launched its sustainability programme, under which farmers are rewarded with a discount of 5% to 10% throughout the entire contract period. However, the transition to organic or regenerative agriculture requires additional investment capacity in particular during the initial phase, as well as room to absorb changes in production volumes or prices. Transition Ground Lease provides this support through a discount during the first five years of the contract and therefore aligns with the financial needs of farmers who wish to transition and invest, for example, in biodiversity or new climate-resilient crops.
Farmers making use of Transition Ground Lease draw up a transition plan together with the ASR Dutch Farmland Fund. This plan sets out, among other things, the intended transition, business strategy, sustainability objectives and financial planning. Participation in the Open Soil Index is also one of the conditions, and progress is reported annually throughout the transition period. The fund has allocated part of its investment budget to Transition Ground Lease. Over the past period, Transition Ground Lease has been developed in practice together with leaseholders, ensuring that farmers’ experiences have been incorporated into the product.