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News Prince's Day 2020

'Don't sell farming, but invest'

15 September 2020 - Eric de Lijster

The cabinet should not buy up agricultural companies in an attempt to reduce nitrogen emissions, but rather invest the money in future-oriented business operations for Dutch agriculture. This is what LTO Nederland and the SGP faction are arguing for in the House of Representatives on this Budget Day after the announcement of the Budget Memorandum for 2021. 

In the Budget Memorandum, the cabinet does not come up with major new proposals for agriculture. After the vision on the new manure policy that agricultural minister Carola Schouten published last week, the emphasis in the Budget Memorandum is mainly on the nitrogen approach, for which €5 billion has been reserved. This amount was already announced last spring. 

Of these billions, €1,5 billion has been set aside for the purchase of livestock farms, especially those located close to Natura2000 areas. Both LTO Nederland and the SGP think this is a waste of money. Or as SGP Member of Parliament Roelof Bisschop describes it in a statement: "The cabinet is investing hundreds of millions of euros in the purchase of livestock farms. But much-needed serious investments in innovation on the farm are not yet forthcoming. The same applies to bills to improve the position of farmers and horticulturists in the chain. Those who stay have a new regulatory burden ahead of them, so that's not getting anywhere."

A nuisance to farmers and gardeners
LTO and the SGP want part of the reserved remediation money to be invested in innovation and making existing agricultural companies more sustainable. "Don't sell agriculture, but invest in the companies of the future," says Bisschop. He notes that the distance between The Hague and the farmyard has increased in recent years. "Perhaps there is a lot of talking, but in any case less and less listening, as if farmers and horticulturists are a nuisance. The opposite is the case."

LTO Nederland once again emphasizes, also in consultation with its members, that they hope for a structural policy that lasts longer than one cabinet. A little more appreciation for the efforts of the sector is welcome. "Whereas, as a policymaker, you focus on goals, not on detailed regulations. The farmer and horticulturist do not tell you how to practice his profession," writes acting chairman Wim Bens to the members of the States General. "Let our professionals choose the route that suits them best."

Breaking a tax lance
LTO emphasizes that agricultural entrepreneurs must be given the opportunity to recoup their investments. The agricultural and horticultural organization also indicates that the countryside should not be the only location to accommodate solar panels or windmills, but that the built environment should also be viewed. LTO also advocates a fiscal climate reserve for the agricultural sector. This pot of money must absorb the income consequences of climate and market disruptions with the profits from better times.

The organization also calls on not to cut back on the self-employed deduction. "Maintain the self-employed deduction for which it is intended: by enabling entrepreneurs to reserve for investments in growth and development of the company and thus employment." In the current corona crisis, the cabinet can also invest in retraining unemployed people to green professions, which is good for the availability of labor in the agricultural sector.

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Eric the Thrush

Eric is a member of the editorial staff of Boerenbusiness. As a descendant of an arable family, farmer's blood flows through Eric's veins. He considers himself a generalist, but with a preference for economics, trends, markets and marketing.

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