May 3, 2023

 

Dutch livestock farmers to receive compensation for closing breeding sites

 

The European Commission has approved two new schemes proposed in the Netherlands that would compensate livestock farmers in certain areas who choose to close their breeding sites voluntarily, Agriland reported.

 

The primary goal of the new Dutch schemes, which will cost EUR 1.47 billion (~US$1.62 billion; EUR 1 = US$1.10) in total, is to reduce nitrogen deposition on nature conservation areas.

 

Because any farmer who signs up for the new schemes must agree that their decision to stop breeding is definitive and irreversible, the proposed schemes will effectively reduce livestock numbers in the Netherlands.

 

They must also agree not to initiate a similar breeding programme elsewhere in the Netherlands or the European Union (EU).

 

The proposed schemes were evaluated by the European Commission under EU State aid rules, which allow aid for the full or partial closure of production capacity for environmental reasons.

 

The new Dutch schemes will be limited to small and medium-sized livestock farmers in the Netherlands who agree to stop breeding voluntarily if their current nitrogen deposition load exceeds certain minimum levels. 

 

The new schemes, LBV and LBV, will compensate livestock farmers who agree to the definitive closure of livestock husbandry sites in Natura 2000 areas voluntarily.

 

Margrethe Vestager, the European Commission's executive vice-president in charge of competition policy, said the EUR 1.47 billion (~US$1.62 billion) Dutch schemes approved will make voluntary closure of livestock farming sites with significant nitrogen deposition on nature conservation areas possible.

 

Farmers who participate in the EUR 500 million (~US$552 million) LBV scheme will be compensated directly for 100% of the losses incurred by the closure of their dairy cattle, pig, and poultry breeding sites, particularly those relating to the loss of production capacity and production rights. The breeding site must meet certain minimum levels of nitrogen deposition load per year to be eligible for the compensation package.

 

The EUR 975 million (~US$1.07 billion) LBV plus scheme will only be available to peak-load emitting breeding sites that emit a high level of nitrogen per year as a minimum.

 

-      Agriland