Young farmers receive extra support

Young farmers receive extra support from Brussels. On Monday, October 16, an agreement was signed for agricultural policy reforms. The Dutch coalition agreement also pays extra attention to young farmers.

Young farmers can apply in the Combined Statement for the 'extra payment for young farmers' from the Common Agricultural Policy (CAP). If the farmer has started a business within 5 years, he can be eligible for an amount of €50 per hectare (over a maximum of 90 hectares).

The first year starts when the young farmer has started or entered into a partnership. In many cases they will therefore not use the full 5 years.

Always 5 years
The above will now change. Last week an agreement was reached in Brussels on a number of agricultural aspects, in the so-called de Omnibus Regulation† Payments to young farmers will now take effect for 5 years from the time the application is made. 

This means that these farmers are always eligible for the extra payment for 5 years. However, the condition remains that the company or partnership was started no more than 5 years ago at the time of the application.

How does that work?
Consider the following situation. A young farmer entered into a partnership with his father in 2015 and meets all the conditions for the extra payment. He applies for this allowance for the first time in 2018.

In the old situation, he would still be paid this for 2 years, because the first 3 years have already passed. However, in the new situation, this young farmer can receive additional support until 2022.

Up to 50% basic premium
In addition, each Member State can choose to provide young farmers with an additional premium from the first pillar of the CAP. The amount can be up to 50% of the basic premium. That is now a maximum of 25% and has been set by the Netherlands at approximately €50 per hectare.

The Netherlands and other Member States must now decide individually whether or not to implement this change. The new measures should come into effect at the beginning of 2018.

Business takeover fund
In the new coalition agreement There is also room for a business acquisition fund. An additional €75 million must be made available for investments in business development by young farmers. It concerns €25 million in 2018 and €50 million in 2019. However, it remains to be seen whether and how this money will actually be used. 

The subsidy scheme will start in December Young farmers open for the third time. The conditions and investment opportunities will be announced by the provinces shortly.

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