Interview Dirk DeLugt
'Hectare premium as a solid basis in CAP'
In the run-up to the European parliamentary elections on Thursday 23 May, Boerenbusiness daily 6 agricultural questions for people with a vision on European agricultural policy. Today that is Dirk de Lugt, chairman of Royal Cosun and the Arable Farming Branch Organization and also arable farmer on Texel.
Talking about the European elections and the consequences for agricultural entrepreneurs in the Netherlands, the conversation with Dirk de Lugt always comes back to 1 topic: the margin distribution in the chain. "European policy focuses on good and cheap food. That is fine, but a hectare premium remains crucial for the time being," he believes. "The price that the farmer receives and the consumer pays continues to diverge further and further."
Do you want more or less European agricultural policy for the Dutch farmer?
"European agricultural policy has brought us a lot: always cheap, nutritious and safe food. That comes with a price. Europe is growing, as more countries join. It seems to me that the new Eastern European member states decide what the policy should be here." not wise. I am not arguing for more policy, but for better and simpler rules. Europe sets the frameworks and the Netherlands gives its own interpretation. In our country, society sets high standards for production methods. Conditions are attached to this. In my view you should not include this in the budget for the Common Agricultural Policy, so the additional requirements regarding climate, biodiversity and animal welfare must be paid for through other budgets."
If we look at the Common Agricultural Policy, should there be a hectare premium or not?
"The younger generation looks at this differently than the older generation. They say: remove the premium and you indirectly lower the land price. Of course, it has a relationship, but I think we should stick to it. You know what you have, but what do you get in return? I see it mainly as a fixed element, because there is no alternative. About 20% of the budget has been earmarked in the new plans for climate. These packages of measures must be financed differently."
"The hectare premium provides income support for farmers. The Dutch government requires farmers here to get to work on climate change. An additional financial instrument is needed for this, and not the first pillar of the budget of the Common Agricultural Policy. If you fiddle with it even more, the playing field in Europe will become even more uneven."
Looking at the implementation of the chain report by Cees Veerman: how do you achieve a 'level playing field' in the European Union?
"What Veerman's report advocates is to give farmers a better position in the food chain. The European Union has therefore made an exception to the competition rules. This gives farmers the opportunity to make price agreements, resulting in a stronger position. "At the moment, farmers are being played too much against each other. High demands are made on animal welfare and resource use, and these have to be translated into the product price. Current market concepts do not reward those extra efforts enough."
"In my opinion, that should change, resulting in a better distribution of margins. In the chain, the farmer receives about 10% of the consumer price and sometimes even only 4% to 5%. It cannot be the case that a farmer is there for 1 year takes a lot of work for it. If he delivers the product, the price will go from 1% to 10% in 100 week. You now have to put in a whole year of effort. The current legislation contributes to this."
Is the Brussels power with regard to the authorization of plant protection products too great?
"You need several countries to get a majority for the authorization of products. That is difficult, because the interests are often very different. Just look at beet cultivation: sugar beet is grown in 19 Member States and it is often an important crop in the construction plan. Nevertheless, it has not been possible to retain the neonics. If you regulate this at member state level, then the policy becomes deeply divided. A level playing field is very important and you cannot achieve it in this way. Scientific research must always be done on the basis of be decided."
"Emotion also reigns in Brussels, it seems. Choices are made on the basis of one's own political supporters. Take, for example, the guideline 'bee guidance', which is very difficult to implement. If this plan is applied in its current form, then there are many more resources to lose. You need the common voice in Europe to put pressure on it. You can't do that alone."
What should be made a spearhead in Brussels agricultural policy?
"Crop protection products are very important for (Dutch) farmers. Ultimately, however, it is all about the distribution of margins. More mechanical and more green products also entail more costs. This must be earned back and a better margin distribution is the best step for this. "We know that crops will be adjusted in the next 10 years. As BO Akkerbouw, we have already put a dot on the horizon and made a plan for this. However, we also need the government for this. Sufficient income has to be earned. All these adjustments can only be made at a good price."
Which myth about the European Parliament is not correct in your view?
"Too often you hear that something is not possible or allowed because Brussels has decided that way. The politicians in Brussels are mainly there to lay down the main points. The Netherlands throws its own sauce over it. It is becoming more and more complicated. Even Dutch politics is fencing. with Brussels. Our country can take more action on the manure policy to extend it across Europe. Each Member State continues to implement details differently. This also has to do with preserving identity and culture. Yet we must act as a community and not live on an island ."
Read all interviews about the European elections here.
Niels van der Boom
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