More farmers' subsidies for climate, but too little

The Climate Agreement of Friday 28 June means that more subsidies will be made available for the agricultural sector. "However, farmers still lack a lot of money to achieve the climate goals," calculates Marc Calon, chairman of LTO Nederland. 

The government has announced that it will adopt the majority of the Climate Agreement. The cabinet is allocating almost €600 million extra for the agricultural sector. However, Calon does put this amount in perspective at BNR Nieuwsradio. "The sector must invest €10 billion in the next 11 years to achieve the climate goals. €6,5 billion of this is unprofitable and €3 billion can be subsidized. This is possible, among other things, because Minister Carola Schouten (Agriculture, Nature and Food Quality) €1 billion has been released from the Ministry of Finance, but a deficit of €3,5 billion remains."

Aims up
Extra money also means extra demands. In the agreement, the expected CO₂-reduction for the sector has been adjusted upwards. Previously, the agricultural sector had aimed for a reduction of 1,8 to 4,6 megatons. That has now been increased to 4,7 to 8 megatons. This is because, according to the cabinet, the agricultural sector can achieve such goals, while other sectors are finding it more difficult.

The Climate Agreement also shows that €276 million is available for measures around the peat meadow area; that is considerably more than the €120 million that was previously pledged. Of that money, €100 million is for relocating, switching or closing companies. The remainder can be invested in underwater drainage, rewetting or other crops. The intention is to convert approximately 10.000 hectares (of the 90.000 hectares of peat meadows) into agricultural nature. The agreement hereby promises customization and voluntariness.

Budget for livestock farming is increasing
The budget for livestock farming has also increased compared to the draft agreement. €252 million is promised, while that was previously €120 million. This can be spent on low-emission barns, but also on precision fertilization in the dairy sector. €2000 million will also be made available for Natura100 areas. Here too, the money is intended to help farmers move, switch or stop their business.

The rest of the money is used, among other things, to make the soil more sustainable, for example through technical innovations and knowledge dissemination (€28 million). €250 million is also available for greenhouse horticulture and €13 million to combat food waste and make better use of residual flows and biomass.

Make appointments
In addition to these budgets, the Climate Agreement also states that targets must be agreed per sector that must be achieved by 2030. The climate performance must be measured at company level. The lead will be taken by LTO Nederland. The organization does report that the proposal still has to be discussed with the supporters. “We have contributed (more than any other in the agricultural sector) to environmental goals,” said Calon. He therefore does not sign until he is sure that the financing will be arranged. He does, however, believe that the content of the Climate Agreement has significantly improved compared to the draft agreement.

Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.

aj.doorn@boerenbusiness. Nl

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