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News Nitrogen

Brussels agrees with 'desperately attractive' offer to farmer

2 May 2023 - Linda van Eekeres - 5 comments

Two cessation schemes for livestock farms from the cabinet were approved today by the European Commission. According to Brussels, there is no question of unauthorized state aid.

In a statement, European Commissioner for Competition Margrethe Vestager said: "The €1,47 billion Dutch schemes we approved today will enable the voluntary closure of livestock farms with significant nitrogen deposition in nature areas. The schemes will improve environmental conditions in those areas and promote more sustainable and environmentally friendly production in livestock farming, without distorting competition."

This concerns the National Termination Scheme for Livestock Farming Locations (Lbv) and Lbv+. €500 and €975 million respectively have been set aside for this purpose. With the Lbv+, 120% of the livestock farmers' production rights are reimbursed. This scheme is intended for 3.000 peak loaders near Natura 2000 areas. Christianne van der Wal, the Minister for Nature and Nitrogen, previously called this proposal 'wildly attractive'. The 'ordinary' Lbv is based on a payment of 100% and 10.000 livestock farmers (dairy cattle, pigs and poultry) are eligible for this. The status of the other scheme, the MGA-2 (second Measure for the purchase and termination of livestock farms), is unclear.

LTO: Opening up all schemes at the same time 
According to LTO, it is important that the purchase arrangements are workable. "It is not only about what compensation farmers receive at the front for the purchase (and demolition) of their stables and production rights, but also about the tax settlement at the back," the organization responds. LTO will carefully study the regulations after publication. The organization also believes that all 'transition schemes' should be opened up simultaneously, 'including the schemes for livestock farmers who choose to reduce their nitrogen emissions with technical innovations, by extensifying, relocating or making the switch to other agricultural activities'. "Only in this way can farmers make an informed and well-considered decision about their future," says LTO.

PAS detectors have priority
Van der Wal announced yesterday afternoon that PAS detectors will receive nitrogen space with priority from purchase schemes via the nitrogen registration system (SSRS). Previously, housing projects and major road projects had priority. The adjustment in prioritization also applies to the space from the purchase scheme Measure Targeted Purchase (MGA), which will be added to the SSRS, says Van der Wal in a letter to parliament. This also applies to the nitrogen space released by the Lbv+, the ministry will let you know when asked. It is up to the provinces to implement the Lbv.

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Linda van Eekeres

Linda van Eekeres is co-writing editor-in-chief. She mainly focuses on macro-economic developments and the influence of politics on the agricultural sector.
Comments
5 comments
Subscriber
Drent 2 May 2023
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/artikel/10904023/brussel-agreement-with-woest-attractive-lbv]Brussels agrees with fiercely attractive Lbv+[/url]
even if I got 100% I would rather sell it to a colleague
Subscriber
CM 2 May 2023
drent wrote:
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/artikel/10904023/brussel-agreement-with-woest-attractive-lbv]Brussels agrees with fiercely attractive Lbv+[/url]
even if I got 100% I would rather sell it to a colleague
Indeed, preserve as much agricultural land as possible because this is the beginning of the end for surrounding companies. It is spreading through the country like an oil slick. Let them get it back and forth with those arrangements because do the math before you sign. After deduction of taxes and possibly a mortgage, you will fall short. Also with 120%. 200% comes first.
yep 2 May 2023
how do they think they can buy out 3000 peak loaders for 975 million, that is 325.000 per company, seems pretty hopeless to me.....
Subscriber
frog 2 May 2023
yup wrote:
how do they think they can buy out 3000 peak loaders for 975 million, that is 325.000 per company, seems pretty hopeless to me.....
they have included in the calculation that 50% of the amount paid out will be returned as tax, but then they don't know our creative Brabanders yet.
Subscriber
juun 2 May 2023
yes, they will soon have left with the northern sun without paying. quite right, by the way.
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