The EU has approved a 1.5 billion euro programme to buy out Dutch farms and reduce nitrogen emissions.
The European Union has approved Dutch government plans to buy out farms
This programme is part of a Dutch national plan to drastically reduce nitrogen emissions, the primary source of which is livestock farming. Farmers in the Netherlands have been protesting against emissions reduction targets since October 2019.
Nearly 1.5 billion euros will be used to provide compensation to farmers who voluntarily close their farms located near nature reserves. It is expected that around 3,000 farms will be eligible for compensation.
The Dutch ruling coalition wants to reduce emissions, primarily nitrogen oxide and ammonia, by 50% across the country by 2030.
Why does the Netherlands want to close farms?
Despite its small size, the Netherlands is the second largest exporter of agricultural products in the world by total value, behind the United States.
According to the national statistics office, the value of Dutch agricultural exports last year was 122.3 billion euros. Due to intensive farming, nitrogen oxide levels in this small country are higher than EU regulations allow. These emissions exacerbate climate change and can harm biodiversity.
In recent years, government proposals to reduce nitrogen emissions have included a plan to reduce livestock numbers by a third. Some farmers feared that they would be forced to cull their livestock to meet this target.
The recently approved voluntary strategy focuses on buying out and shutting down farms that produce high nitrogen emissions.
On Tuesday (2 May), the country received approval from the European Commission that these plans are permissible under state aid rules.
“The schemes will improve environmental conditions in these areas and encourage more sustainable and environmentally friendly production in the livestock sector, without causing excessive distortions of competition,” said Margrethe Vestager, Executive Vice-President of the Commission responsible for competition policy, in a statement announcing the approval of the support.
What do farmers think about the farm buyout programme?
Farmers' organisation LTO stated that the buyout measures “must be designed in such a way that they truly offer farmers who voluntarily cease operations the opportunity to bring their business to a proper close”. The organisation also called for the introduction of “transition schemes” that would allow farmers to reduce nitrogen emissions through various methods, such as technical innovation or transitioning to other agricultural activities.
“This is the only way that farmers can make an informed and well-considered decision about their future,” said LTO.
In March, a pro-farming political party won the Dutch provincial elections, reflecting the farmers' dissatisfaction caused by the nitrogen reduction plans. The central Dutch government has tasked provincial legislatures with formulating and implementing specific proposals for reducing nitrogen emissions. Last year, farmers staged several large-scale demonstrations, blocking motorways and supermarket distribution centres to protest against reforms they view as an existential threat to their way of life.
Demonstrations have also spread to the neighbouring country of Belgium, where hundreds of farmers drove their tractors into the centre of Brussels last month to protest against plans to reduce nitrogen pollution.