Tokenisation (RWA)
Worked example: farmland tokenisation
Farmland is the most common tokenisation case in the Benelux because cash flow is predictable and the land registry settles ownership. We work through one file: 42 hectares of clay soil in Flevoland, bought for 3.36 million euro and leased to an existing arable farmer.
The case in brief
A fund buys 42 hectares at 80,000 euro per hectare. Title is registered to a Dutch private company whose shares are issued as 3,360 tokens of 1,000 euro. The land is leased for twelve years under a liberalised lease.
Gross rent is 1,100 euro per hectare per year, indexed. After water board levies, management and administration roughly 780 euro remains, just under one per cent net direct yield.
Key figures
- Area
- 42 ha
- Purchase price
- 80,000 EUR/ha
- Token
- 1,000 EUR
- Gross rent
- 1,100 EUR/ha
- Net direct yield
- 0.98%
- Term
- 12 years
Sea clay, Flevoland
3.36m total
3,360 tokens
Indexed
After levies and management
Lease matches horizon
Process steps
The timeline is shorter than art, roughly three to four months, but the notarial transfer is a hard dependency: until the deed is registered there is nothing to tokenise.
Soil testing and public-law restrictions are where deals actually fail: nitrogen limits, water level decisions, archaeological expectations and municipal pre-emption rights can constrain use for years.
From plot selection to first distribution
- 01
1. Plot selection and soil analysis
Weeks 1-2
- 02
2. RICS appraisal
Weeks 2-4, value in leased state
- 03
3. Public-law due diligence
Weeks 3-6
- 04
4. Soil and drainage testing
Weeks 4-6, PFAS
- 05
5. Vehicle incorporation and funding
Weeks 5-8
- 06
6. Notarial transfer and registration
Weeks 8-9
- 07
7. Lease agreement signed
Weeks 9-10
- 08
8. Token issuance and whitelisting
Weeks 10-14
- 09
9. Annual lease distribution
After harvest season
- 10
10. Revaluation and exit
Years 10-12
Parties involved
Land involves fewer exotic parties than art, but the notary and the registry are indispensable. Any project claiming the blockchain replaces the land registry is simply wrong.
The tenant farmer deserves particular attention: they determine both the cash flow and the condition of the soil.
Parties and their role
| Party | Role | What to watch |
|---|---|---|
| Notary | Transfer and registration | No deed, no ownership |
| Land registry | Public register | Blockchain only references it |
| RICS appraiser | Value in leased state | Vacant value is higher |
| Tenant farmer | Farming and rent payment | Creditworthiness, soil care |
| Water board | Water levels and levies | Rewetting for nature restoration |
| Municipality/province | Zoning and permits | Pre-emption, nitrogen |
| Land steward | Day-to-day management | 0.3-0.6% per year |
| Fund manager | Licence or exemption | Exemption means less oversight |
| Exit buyer | Neighbour, fund, investor | Thin local market |
Returns over twelve years
Direct yield is low but stable at roughly one per cent net, indexed. Real return must come from appreciation. At three per cent per year, value rises from 80,000 to about 114,000 euro per hectare over twelve years.
Add four to six per cent entry cost for transfer tax, notary and structuring, plus two to three per cent on exit. Total return lands near three per cent per year in euro terms: solid and inflation-resistant, but not crypto-like.
Policy is the biggest uncertainty. A nitrogen rule, a nature buy-back scheme or lease law reform can move value by tens of per cent in either direction.
- About 1% direct yield; appreciation drives the result
- Entry and exit costs together reach 7-9%
- Policy is the main source of value shocks
What to check
Ask for the cadastral plot numbers and verify them yourself in the public register.
- Are cadastral plot numbers stated explicitly?
- Does the vehicle own the land, or is it only under offer?
- Which lease type applies and how many years remain?
- Is there soil testing including PFAS and drainage?
- Are public-law restrictions registered?
- Who carries water board levies and restoration costs?
- Is the yield shown net of all costs?
- How is the exit organised and who appraises then?
- For foreign land: may a non-resident own it at all?
Frequently asked questions
Do I own the land itself?
No. You hold a share in the company registered as owner. That distinction governs your rights in insolvency and on sale.
How often is rent distributed?
Usually once a year after the harvest season; some platforms pay quarterly advances.
What if the tenant does not pay?
Cash flow stops until a new tenant is found. Ask about guarantees: bank guarantee, deposit or a year of rent paid up front.
Is farmland inflation-proof?
Historically it tracks food prices and inflation reasonably well over the long run, but not year to year; interest rates dominate short-term moves.
Read next
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