The collection fee that livestock farmers pay to get rid of the manure has been stable for weeks. Crops are full of growth and there is therefore little demand for manure from arable farming. Normally you would expect that this quiet phase to continue until fertilizer can be applied to the grain stubble again. Whether or not there is a derogation, however, hangs like a dark cloud over the market.
This month, Minister Henk Staghouwer (Christian Union) hopes to provide clarity on this, as he promised in a debate with the House of Representatives. That can turn the apparently calm fertilizer market upside down.
Derogation has been on the minds of dairy farmers since the start of the manure season. Various cooperatives, suppliers and advisors advised livestock farmers not to take into account the higher manure standard of the derogation in the fertilization plan for this season. After all, once manure is on the pasture, you can no longer dispose of it if the derogation is not granted. Fertilizer prices rose to record highs in the spring and the ministry is now talking about circular agriculture. It is therefore understandable that livestock farmers wait as long as possible before disposing of manure.
Finally clarity, well probably
The third presentation by the Netherlands to the Nitrate Committee of the European Commission is on the agenda next Monday (June 13). The government must explain how it wants to improve water quality with the area-oriented approach. Staghouwer indicated in the debate that he was still positive about the outcome of the procedure surrounding the granting of the derogation. Last month, the minister announced that livestock farmers would be wise to stay within the standard of 170 kilos of nitrogen per hectare from animal manure. VVD MP Thom van Campen proposed not to enforce exceeding the manure standards this season, because the manure season has already started a long time ago and many livestock farmers have expected a derogation to be granted. Staghouwer does not want to go along with that.
All the uncertainty about the derogation is causing serious problems on the manure market. The second cut has been mowed on many farms or is planned to be done in the coming days. The pasture is therefore also ready for the third fertilizer application. The farmer is faced with a dilemma. Will you go along with the minister's optimism and dare to use liquid manure or will you take the safe route and spread expensive fertilizer?
Favorable spring, unfavorable autumn?
Companies that normally make use of the derogation must also take into account the smooth disposal of manure last spring, some manure intermediaries warn. The user standards in arable farming are fixed. Due to the high fertilizer prices, arable farmers have supplied more animal manure than average. They even paid for spreading manure, something that has not happened for a long time. Due to the generous interest in animal manure, the manure space on many arable farms has already been largely used up (or perhaps even exceeded), according to traders. As a result, after the grain harvest and other early crops, there may be much less demand for fertilizer than we have been used to in recent years, while the supply may actually be greater. Processing the manure is another option, but there are also limits to the capacity.