The European Commission has approved a €700 million Dutch State scheme to compensate farmers who voluntarily close livestock farming sites in some regions of the Netherlands. The Dutch government is looking to improve the quality of the environment and promote more sustainable and environmentally friendly production in the livestock sector with this initiative.
The scheme will apply to priority areas, including peatlands, sandy soils, stream valleys, and areas in and adjacent to Natura 2000. It will be open to small and medium-sized livestock farmers operating in any eligible areas until the 1st of October, 2029.
The aid provided under the scheme will consist of direct grants and subsidized advisory services. It will cover up to 100% of eligible expenses, including compensation for the loss of production rights and capacity, expenses for dismantling and disposing of production facilities, and other costs directly related to the site closure.
Reducing excessive nitrogen
To qualify for the program, farms must have annual nitrogen emissions that meet specific thresholds, ensuring their closure will result in a significant positive environmental impact.
This scheme complements two existing Dutch schemes (LBV and LBV-plus) approved in May 2023, aimed at reducing excessive nitrogen from livestock sites in nature conservation areas. Farmers can only participate in one of the three schemes.
Assessed under Article 107(3)(c) of the Treaty on the Functioning of the European Union and the 2022 Guidelines, the Commission found the scheme necessary and appropriate for sustainable livestock farming to be aligned with the European Green Deal.
“The Commission concluded, the scheme is proportionate, as it is limited to the minimum necessary and will have a limited impact on competition and trade in the EU. On this basis, the Commission approved the Dutch scheme under EU State aid rules,” reads the announcement.
The non-confidential decision will be available under case number SA.114339 in the State aid register on the Commission’s competition website.
A food transition is needed
Reducing livestock numbers is crucial to maintaining the food system within planetary boundaries, as it helps lower emissions, minimize soil, water, and air pollution, and restore biodiversity.
A recent Harvard study on reducing emissions from the global livestock sector outlines that lowering the consumption of livestock products and the number of farmed animals must be part of the solution to address climate change.
Dr. Helen Harwatt, author of the study, noted, “Much of the political focus has been on the energy transition, however, a food transition is also needed – especially for highly emitting animal products.”
In a similar initiative, the Vegan Netherlands Project (Project Nederland Veganland) explored how the Netherlands could be self-sufficient regarding food and what would happen if everyone ate only plants.
The researchers say that a plant-based hypothetical society would need more farmers. “According to our calculations, we need twice as many farmers in a fully plant-based system than in the present one,” Berno Strootman, landscape architect and project participant explained.
