Blow for dairy farmers in phosphate case

The court ruling on Tuesday 31 October means that dairy farmers must still remove livestock. They are also fined. A painful situation for the approximately 450 farmers who went to court. However, the ruling is a relief for the dairy sector.

The dairy farmers who were initially relieved by the preliminary relief judge are getting a big blow from the court in The Hague† The court ruled on 31 October that the first group of claimants (51 dairy farmers) must still remove livestock and receive fines for the livestock kept too much. This means that the other groups of claimants (approximately 400 dairy farmers) will also have to remove livestock in order to comply with the 2017 phosphate reduction plan.

Payment scheme
The fine that the claimants will receive is €240 per LU per month. According to the lawyers involved, the fines can be substantial, possibly even up to €100.000. Peter Goumans, lawyer at Hekkelman Advocaten & Notarissen: "A customer of mine has to dispose of half of his herd. Another dairy farmer can expect a fine of around €100.000, calculated up to and including period 4 of the phosphate reduction plan." According to Goumans, the ruling hits his clients hard. He now wants to discuss a payment arrangement with the Ministry of Agriculture, Nature and Food Quality (LNV) as soon as possible. "The state lawyer has already promised that a payment arrangement is possible for the most painful cases."

Disappointed
Goumans says he is disappointed with the verdict. The court ruled that it is not possible to obtain an exemption per group. It is possible, however, to be classified as a bottleneck per individual. "That is no longer an issue for this year. We will have to submit these individual cases to the Trade and Industry Appeals Tribunal (CBb). A ruling is not expected this year. From a legal point of view, it is no longer possible for 2017. get out of the phosphate reduction plan." Goumans represents 5 dairy farmers who have to deal with the decision of the Court of Appeal.

see through
Mary Toders, lawyer at Linssen CS Advocaten, represents 6 of the 51 dairy farmers to which the ruling applies. In addition, it has 140 dairy farmers who are waiting for a ruling in a similar procedure. "This ruling provides a glimpse into the second group of dairy farmers."

Toonders still sees merit in starting proceedings on the merits. "This may be another route to obtain compensation."

Assessment of equity
Lubbert van Dellen, regional director of Accon avm, says the ruling is painful for dairy farmers, but good for the sector in general. "The court has drawn a clear line. That clarity is good. Tensions have risen considerably in recent months as a result of the lawsuits."

Among his customers, Van Dellen also has a number of dairy farmers who went to court because they felt that they were being disproportionately burdened by the phosphate reduction plan. "The fines mean a serious attack on their own capital for some involved. That is a cause for concern." Like Goumans, he assumes that the ministry will be lenient and will make a payment arrangement. 

Ministry is studying the ruling
"The ruling has far-reaching consequences for the relevant dairy farmers. For the sector, it means that the chance of retaining the derogation increases," said Daniëlle Cardozo, spokesperson for Minister Carola Schouten. The Ministry of Agriculture, Nature and Food Quality is still studying the ruling and says it will provide an explanation this week.

At the National Economic Agriculture Congress, various speakers will discuss the situation in dairy farming. Subscribers can attend the conference for free. Click here for more information.

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