Phosphate rights continue to pose difficult questions

The dairy farmers moved on on the short end of the stick in the appeal filed by former State Secretary Martijn van Dam. Topic of discussion at the fair, because will there be less milk now? After all, the approximately 400 livestock farmers must still retroactively dispose of livestock and pay a fine.

Exemption from light test also undone
"The judge's decision will bring some peace again to a divided sector," is the opinion of many dairy farmers at the fair. A few organic livestock farmers are disappointed, while others indicate that they have not grown around 2015, but that they have also been cut back. Only because they are not completely land-based. An 8,3% discount really hurts. Whether it is a herd of 50 animals or a herd of almost 200.

"With retroactive effect, those who were exempt, based on the light test, will again face a fine," Benthem Gratama's lawyers said. It is a hard blow for those who previously received the fine back. At Farmel they know that this money has been used to buy cattle. Now the money must be released again. It remains to be seen whether the postponement of the fine has benefited livestock farmers.

Less milk?
The livestock trade was counting on the fact that, in the event of a negative ruling, there would be a greater supply of export cattle for livestock farmers. Whether that expectation will come true remains to be seen. The question is also whether there will be less milk. Since many livestock farmers exchanged less good cattle for milk-producing heifers from Germany.

It is precisely these imported cattle that appear to entail a peculiar administration. For example, a visitor says that heifers that gave birth to a calf in Germany are registered as young cattle in the Netherlands (category 102). That supports what the trade previously reported. Lactating heifers from Germany fall under the heading of young cattle. It is important to check this yourself and to report any changes to RVO.nl, the agency will let you know when you inquire.

Waiting for implementation regulations
It is one of the uncertainties. "Now we have to wait for the implementation regulations," the lawyers said. "But that arrangement will have to wait until there is insight into the derogation. The next discussions will take place in November. RVO.nl must then come up with a reference for the dairy farmers and only then will a farmer know where he stands. "That will come in February or March. They won't make it through January."

The fact that there are still some pitfalls here becomes apparent when asked how a cow of the 'Fleckvieh' breed counts. A so-called dual purpose and therefore a cow that does not fit into a box. "Please be patient", this is the answer the lawyers receive from RVO.nl. "But how do they find out the milk production per cow for 2018?", the audience said. The lawyers don't have the answer. Just as it is not known how the determination will take place if livestock farmers do not participate in the sampling.

No derogation other than extension of the scheme
However, if there is no derogation, the phosphate reduction scheme will be extended. Even if, for example, a derogation only comes into effect in 2018, this will have consequences for the timeline of the phosphate rights system. 

There is also the skimming of rights for the phosphate bank. Which is an infringement of the property when phosphate production is below the ceiling. The minimum of 10% is included in the regulation, but the discussion is still ongoing. According to the lawyers. 

There is still a lot of work to be done and again the lion's share must be carried out by RVO.nl. "We do not know whether RVO gives priority to collecting the fines or determining the reference. The answer in recent weeks has been 'please be patient'."

At the National Economic Agriculture Congress, Lubbert van Dellen will also discuss the impact of phosphate rights on dairy farmers' business operations. Subscribers can attend the conference for free. Click here for more information.