The fact that the current hectare premium of €388 for Dutch farmers will be lower from 2021 is a certainty. On the other hand, farmers who cultivate individually or together or who come up with other things that Brussels likes to support, can actually count on extra money.
The above briefly outlines where the new Common Agricultural Policy (CAP) is headed for 2021/2027. In that year, the hectare premium is the same for all farmers for the first time, and is made up of a basic premium of €275 and a greening premium of €113 (now mainly filled in via permanent grassland or crop diversification). However, this premium will decrease further as of 2021 due to the lower agricultural budget, while the requirements are increasing. In the proposals presented, European Commissioner Phil Hogan wants to link the hectare premium even further to social services, such as climate and biodiversity.
Brexit leaves a hole in the budget
Brexit will leave a €12 to €14 million gap in the European budget. In addition, the European Union (EU) wants to spend more money on themes such as migration, security, energy and climate. "As a result, less goes to agriculture," said Frans Vroegop of the agriculture ministry at a meeting in Leeuwarden. In the EU budget for 2021, only 28,5% will go to agriculture, compared to 38%. Countries can decide to close the gap with a higher contribution, but most countries (including the Netherlands) are not interested in this.
The Dutch agricultural sector now receives approximately €800 million annually from Brussels. It remains to be seen how much less that will be exactly from 2021. According to Hogan, however, it is a reduction of nominal 4%. However, the European Parliament and LTO Nederland include inflation and arrive at a reduction of at least 15% compared to 2019.
Less money for the agricultural sector is not the only threat, because the European Commission is also toying with the idea of equalizing the hectare premium for all countries in the EU. That would seriously disadvantage the Dutch farmer, who has the highest hectare premium. Vroegop indicated that Prime Minister Mark Rutte strongly opposes this. Not only because of the historical rights that have been built up, but also because the costs for land, labor and public services here higher lying down. "You should also not forget that Eastern European countries receive more money from structural development than the Netherlands."
Opportunities for extra money
In addition to all those threats, there are also opportunities. There will be various possibilities for farmers to obtain extra money from Brussels. This can be done through the so-called 'eco-regulations', a new element within the CAP. "This is an instrument that rewards the efforts of farmers on certain topics with a financial compensation. You can think of things that are good for the climate and biodiversity. However, these do not necessarily have to be flowery field margins, it can also be linked to smart farming," says GLB expert Klaas Johan Osinga.
For example, Vroegop mentioned in Leeuwarden a reward for the cultivation of protein crops or for a maximum number of LUs (Large Vee Unit) per hectare. In the Netherlands, 7 pilots were started by BoerenNatuur and LTO Nederland in March, giving more direction to the precise implementation. "An innovative farmer who manages to stack more of these eco-schemes can get quite a bit of financial support this way."
The Netherlands itself determines the use of money
The new CAP will also provide much more freedom for the Member States to determine the expenditure themselves, of course within the frameworks set by the EU. Each country is expected to draw up a 'National Strategic Plan 2021-2027 CAP'. The contours of this should be in scaffolding by the end of this year. This plan sets out how the Netherlands implements those European CAP regulations. It is expected that the Netherlands will place particular emphasis on the transition to circular agriculture, the climate agenda and strengthening the position of farmers.
Vroegop stated that a lot could change on various fronts in the coming 2 years during the negotiations. He is sure that the new CAP will not come into effect until 2022 or maybe even 2023. "We will not make it to January 2021. There may be a new budget, but there is no new CAP agreement yet." He indicated that the elections to the European Parliament in May and those to the European Commission later this year are slowing things down. "Until November, things will be more or less at a standstill."