Shutterstock

News GLB

Investors: phasing out direct support to dairy farming

22 March 2021 - Jurphaas Lugtenburg - 15 comments

A group of investors representing assets of approximately €1,7 trillion is calling on the European Commission to set sharper targets for climate and biodiversity in the new Common Agricultural Policy (CAP). They propose, among other things, to phase out direct support for dairy and veal farming.

Reuters reported this today (Monday, March 22), before the European Council of Agriculture Ministers meet later this day. Led by Legal & General Investment Management and the Chatham House think tank, the investors make 4 recommendations. One of these is phasing out direct support for products that cause relatively high greenhouse gas emissions, such as dairy cattle and beef cows.

According to the top investors, climate change policy should be more in line with the goal of zero greenhouse gas emissions by 2050. Financial support for agricultural entrepreneurs should be based on the costs associated with protecting the environment, says the group. Promoting production at the expense of the environment should be discouraged. The CAP funds should also be used, according to the investors, to support farmers who want to make the switch to more environmentally friendly activities.

To model without net emissions
“As long-term investors and stewards of our clients' wealth, we partner with the entire food chain in the transition to a zero-emissions model,” said Alexander Burr, ESG Policy Lead at Legal & General Investment Management at Reuters. "But to bring about real change, we need the help of policy makers." The group of investors includes Aviva Investors, Robeco and the FAIRR Initiative.

Agriculture accounts for about 10% of EU greenhouse gas emissions. An EU representative reports that the principle supports the Green Deal in the negotiations on the new CAP. More money will be made available for 'carbon farming' and organic farming.

Do you have a tip, suggestion or comment regarding this article? Let us know

Jurphaas Lugtenburg

He is a market specialist in grains and other agricultural commodities at DCA Market Intelligence. He also focuses on onions, potatoes, and roughage. Jurphaas also runs an arable farm in Voorne-Putten (South Holland).
Comments
15 comments
Subscriber
frog 22 March 2021
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/ artikel/10891513/investers-bouw-directe-steun-melkveehouderij-af]Investors: phasing out direct support for dairy farming[/url]
If I understand correctly, agriculture only emits 10% of greenhouse gases with the production of food for 95% of the world's population, so we are actually doing quite well! Keep it up dear colleagues.
Subscriber
frans 22 March 2021
There is more to gain from that group of investors who emit the other 90%, they can raise 1,7 trillion to improve the climate.
They already indicate that they need policy makers, the money is already there!
Subscriber
Drent 22 March 2021
that was my thought too frog, food comes first so 10% is relatively small.
Subscriber
Ard 22 March 2021
Money comes first for those investors and they probably have an interest in our agricultural land.
22 March 2021
Agricultural acreage and livestock have been shrinking for decades and at the same time, farmers are farming more carefully. In the meantime, the Netherlands is starting to look more and more like Legoland with its brick boxes.

20 googles takes as much energy as boiling 1 liter of water. Computer chips, data centers, search engines and streaming services are real energy guzzlers, they pose the greatest 'invisible' threat to the environment, climate and landscape. Not to mention the mining required for the raw materials of this technology sector. Let the investors be more mindful of this world-destroying non-circular information/tech/entertainment sector.

For this reason, more and more people are consciously saying goodbye to their largely unnecessary technological gadgets and entertainment.
Subscriber
Dirk 22 March 2021
Frog, what you're saying is complete nonsense.
I will list a few other numbers for brevity.
80% of our total agricultural production is exported.
The total production or export also includes export agr. knowledge/machines etc., processing and transit of goods/raw materials.
80% of the (80%) exports remain in the neighboring countries of Germany (particularly North Rhine-Westphalia), Belgium and France.
Only 2% of the total (80%) food export consists of food that goes worldwide.
So Frog, so we are the 2nd agricultural exporter in the world after the US, but only a small part of it is food related that goes worldwide and therefore in no way comes close to the diet of 95% of the world population.

Elsevier published an extensive article about this a few months ago.
I can recommend that you read the full article, it is really an eye-opener.

If half of the livestock disappears, it will hardly cause economic contraction.
And it won't cause empty shelves either, as some shouters bleat around, because as it stands, 70% of dairy products alone already cross the border and pork even 83%.
Hands 22 March 2021
Dirk wrote:
Frog, what you're saying is complete nonsense.
I will list a few other numbers for brevity.
80% of our total agricultural production is exported.
The total production or export also includes export agr. knowledge/machines etc., processing and transit of goods/raw materials.
80% of the (80%) exports remain in the neighboring countries of Germany (particularly North Rhine-Westphalia), Belgium and France.
Only 2% of the total (80%) food export consists of food that goes worldwide.
So Frog, so we are the 2nd agricultural exporter in the world after the US, but only a small part of it is food related that goes worldwide and therefore in no way comes close to the diet of 95% of the world population.

Elsevier published an extensive article about this a few months ago.
I can recommend that you read the full article, it is really an eye-opener.

If half of the livestock disappears, it will hardly cause economic contraction.
And it won't cause empty shelves either, as some shouters bleat around, because as it stands, 70% of dairy products alone already cross the border and pork even 83%.
True, Agribusiness, including educational institutions, does not mean by feeding the world population that the food that feeds the world population is produced in the Netherlands. But that Dutch knowledge and techniques, etc. feed the world population.
22 March 2021
Dirk wrote:
Frog, what you're saying is complete nonsense.
I will list a few other numbers for brevity.
80% of our total agricultural production is exported.
The total production or export also includes export agr. knowledge/machines etc., processing and transit of goods/raw materials.
80% of the (80%) exports remain in the neighboring countries of Germany (particularly North Rhine-Westphalia), Belgium and France.
Only 2% of the total (80%) food export consists of food that goes worldwide.
So Frog, so we are the 2nd agricultural exporter in the world after the US, but only a small part of it is food related that goes worldwide and therefore in no way comes close to the diet of 95% of the world population.

Elsevier published an extensive article about this a few months ago.
I can recommend that you read the full article, it is really an eye-opener.

If half of the livestock disappears, it will hardly cause economic contraction.
And it won't cause empty shelves either, as some shouters bleat around, because as it stands, 70% of dairy products alone already cross the border and pork even 83%.
The farmer is mainly used by the agribusiness to shift the development costs of the new techniques and knowledge to be exported.
Subscriber
frog 22 March 2021
I am responding to the figures from the article Dirk, and this article is not about the Netherlands but about European cap policy and actually it is about agriculture worldwide. So no complete nonsense on my part Dirk look further than the land border.
Subscriber
Dirk 22 March 2021
Frog, come to the ditch yourself if the slope is not too steep, dear boy or girl.
I have the numbers from an extensive art. in Elsevier and they really look across the border, so I as a reader do too.
The Dutch food production is quantitatively insignificant on a global scale.
But it is very intensive and leaves its mark in or on our overcrowded and densely built-up country or on our stamps, for example through a 48% share in nitrogen emissions.
Greenpeace even claims a 61% share. To avoid reading only one-sided information, which would prevent me from forming an objective opinion, I also read their periodicals.
More farmers should do. Is very good for the ratio. Clarifying, then you learn not to always blame someone else in advance.
Cow 22 March 2021
No more cows..... so no more cows in nature reserves..... will all make me curious. One thing is clear.... pollution by the primary sector is the spearhead.
Subscriber
frog 22 March 2021
Oh sorry Dirk but if you got it from the Elsevier then it must be true. However?
Subscriber
Drent 22 March 2021
Dirk, if the livestock is halved how should arable farming fertilize its soil? Do we have to go back to much more fertilizer and poor soil?
Hank. 23 March 2021
People don't listen to these very fanatical climate fanatics! They are bringing our society to ruin.
Roy 24 March 2021
idk then we can use a lot more fertilizer again, away from circular agriculture, away from Schouten.
You can no longer respond.

Sign up for our newsletter

Sign up and receive the latest news in your inbox every day

Background GLB

Should large farmers get subsidies or not?

Call our customer service +0320(269)528

or mail to support@boerenbusiness.nl

do you want to follow us?

Receive our free Newsletter

Current market information in your inbox every day

Sign up