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Lessons for a new Agricultural Agreement

7 July 2023 - Klaas van der Horst - 3 comments

Since the Agricultural Agreement fell through, there has been a lot of discussion about the process. The proponents of a deal never fail to emphasize the missed opportunity, the doubters continue to do what they did and continue to torment themselves with the question: 'what if…?' The opponents are satisfied for now. There are delays and there are new opportunities.

'Independent' chairman Chris Kalden now really has his hands free and also participates in the above-mentioned party game. In his final report, which went to the House of Representatives at the beginning of this week, he also reflects on the process. Kalden had set it up differently and defined it more clearly in advance, he says. It is an observation that has also been made more often in previous episodes of the Nitrogen Mood.

Wishing tables and negotiating tables
Kalden states that the set-up with sector tables, where the wish lists were drawn up and a main table, where negotiations then had to take place, did not work. The secrecy and therefore not being allowed/able to take the supporters with them also hindered the process. And then of course the division in the agricultural sector, which is always there (but that drivers of LTO apparently did not notice or did not want to see). Kalden lists quite a list. Kalden had no problem with the extensive representation to 'demanding' parties (the various site managers and/or nature organizations and local authorities). They are barely mentioned in the report.

Kalden would do it differently
Should there ever be a new consultation on an Agricultural Agreement – ​​Kalden apparently does not rule out the possibility – then he would approach it very differently, simply, more concisely, more openly.
His remarks about financial guarantees to farmers for the expected earnings after an Agricultural Agreement have been widely picked up by other media. He rightly notes that it should be about earning capacity of farmers, not about income guarantees, but his statements about the expected earning capacity sound very much like the projections of a civil servant or politician who does not experience reality himself.

Political and official projections
Something similar can be found in the report of the conversation that Minister of Agriculture Piet Adema had with European Commissioner Frans Timmermans at the end of last year. The NOS reported At the beginning of this week, the European Commissioner had warned that in 2023 there would still be bad fertilizer news from Brussels for farmers. Adema contradicted this and sent a partially readable conversation report as proof.

It also contained Timmermans complaints about organic farming. According to the European Commissioner, he felt 'abandoned' by the Dutch government. Ignoring the fact that it is mainly the consumer who does not need the more expensive organic product. Apparently he hadn't realized that consumers were even passing over the more expensive conventional products (the A-brands) en masse in favor of the cheaper private label product.  

Timmermans did have a lot of praise for one case though. That was about the integrated Dutch approach to water. He called it brilliant.

Derogation and groundwater
Somehow that feels a bit strange, while Adema has just been brushed off about the constant 'not delivering' of the Netherlands in the field of legislation. After all, the (laws and regulations for) water quality are also at stake here.

When it comes to derogation and water quality, there is something else striking. According to reports from the Netherlands and Brussels, the Netherlands itself does not meet the standards, and this also applies to surface water, but when it comes to groundwater quality, the derogation has not jeopardized its quality since 2006. the RIVM in a report also released this week.

Soil diseased and full of residue
However, with Timmermans and the environment commissioner Virginius Sinkevicius who is functionally subordinate to him, the glass is (figuratively speaking) not easily half full. In a speech in Brussels they once again sounded the alarm about climate, environment and soil this week. Agriculture in particular had to suffer, although Timmermans also denounced the enormous food waste in the EU. Every year 59 million tons of food is thrown away, not used. "If food waste were a Member State, it would be the fifth largest emitter of CO2 in the EU by volume."

Sinkevicius reported that as much as 70% of agricultural soils are not healthy and that 83% of those soils are contaminated with pesticide residue. According to him, this costs € 50 billion in damage per year. Drought damage alone costs €9 billion annually. Inquiries with the European Commission have not yet clarified how Sinkevicius arrives at his calculations.

In The Hague, politicians from D66 and GroenLinks are concerned about the amount of crops grown purely for livestock farming and wonder whether more cultivation directly for human consumption would not be more efficient. It would also make a lot of livestock farming obsolete. Wageningen UR has figured that out and is likely to disappoint them somewhat. According to the WUR researchers, there is hardly any benefit to be gained from this in the Netherlands.

Competitive offer?
While the cabinet has now fallen and it is uncertain what will happen next, the buy-out of farms and, in particular, of peak loaders has started and this process will continue. There are not many results to report on this yet, but various signs indicate that the process will not go smoothly. Minister Christianne van der Wal will not be the only interested party for various locations. With 20% outbidding for only a few selected parts of companies and probably a long wait for a financial settlement, she is not immediately well pre-sorted or first in line, as can be heard in the field.

Billions or not, the government is not an agile buyer. Laws and regulations do not change that easily. Perhaps it would be instructive if the chief negotiator for the peak tax squeeze-out scheme also writes a final report in due course on what, in retrospect, went well and what did not go well with that scheme.

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Klaas van der Horst

He is a dairy market specialist at DCA Market Intelligence. He researches market news and trends and interprets developments.
Comments
3 comments
Subscriber
Louis Pascal deGeer 8 July 2023
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/article/10905000/lessons-for-a-new-agricultural-agreement]Lessons-for-a-new-agricultural-agreement[/url]
I think the biggest lesson is to rethink everything and ask ourselves if we are not completely on the wrong track especially with our nitrogen and carbon dioxide theories in agriculture and livestock, horticulture, forestry and Nature on the one hand, and the industries and cities on the other. Today we put all nitrogen in a large cycle regardless of its origin, and this certainly also applies to carbon dioxide. Is that correct? Of course you can also say that all nitrogen comes from the air, with the exception of guano.
Air contains 78% Nitrogen, 21% Oxygen and 1% Argon, we have been learning since the 18th century, but what exactly is the role of Argon gas, which is inert and does not combine with other gases (only under extreme conditions). The gas composition in the air is extremely stable and that is why we can simply breathe up to an altitude of 1500 meters above sea level, after which it seems more difficult to get enough oxygen.
Nature and related activities are in what I call a biological cycle, while the industries are often in a chemical cycle, WHAT'S THE DIFFERENCE????
Isn't an Oxygen cycle the most important thing to look at because a shortage of Oxygen in Humans, Plants, Animals, Soil and Water is the cause of almost all diseases. Do we do something with that?? How can we better understand the role of the Argon gas in the air, because there may be an important clue on how to keep the gases healthy and thus mitigate the greenhouse effect to a large extent. Am I dreaming, yes maybe, but without dreaming little happens!
fer 9 July 2023
the above always writes very floating space-like texts.
lesson 1 just let the farmer farm again/appreciate them much more
lesson 2 package of rules with 50 % downsizing/better financial support
Lesson 3 Set up a board that ensures that every farmer in the Netherlands is preserved and cherished.

nothing more nothing less
Subscriber
Southwest 9 July 2023
There are still many more rules to be introduced, you can see that in the last 10 years!
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