Background nitrogen mood
Farmers deserve better, say Rob, Henri and Dilan
Judging by the language in the new coalition agreement, things should improve for agriculture and horticulture in the coming years. Coalition partners D66, CDA, and VVD also want to "seek breakthroughs" for farmers in the next four years, remove the sector from the nitrogen lock, and achieve many more great things. Because "farmers deserve better," write Rob, Henri, and Dilan.
Getting started is bursting with encouraging words and good intentions. The agricultural sector is also getting back a meeting platform it had long thought was lost: the Product Board 2.0, it's reported. The CDA, in particular, fought hard for this.
To get the Netherlands, and also agriculture, off the nitrogen lock, a whole series of measures is being proposed: the current critical deposition values will disappear, and partly for this, but also for further changes, laws will be amended, and companies will become more responsible for their own recycling performance, having to meet guaranteed reduction targets and the like, whatever these may be in concrete terms.
More expenditure planned than Jetten-1 can spend
A buyback fund for voluntary business closures will also be established, but all the money the new government wants to allocate to nitrogen and nature seems more than it actually is. Many proposed expenditures cover a longer timeframe than the new government's maximum allotment, extending until the next elections (provided the non-co-governing parliamentary majority also allows it). Planning extends to 2035.
For now, it's difficult to see past all the fine and enthusiastic talk and understand exactly what D66, CDA, and VVD intend to do. For that, we have to wait for a new cabinet to take office. Rob Jetten will have to get to work with that. He will be tasked with forming a cabinet and turning words into action.
Show less fanatic
And for what it's worth: the tone of the nitrogen problem is less fanatical than during the last two Rutte administrations. Nevertheless, the new team led by incoming Prime Minister Jetten will also want to achieve reductions.
It's possible that several interventions by prominent agricultural figures and others have had some impact on the coalition agreement discussions. This week, a large number of agribusiness companies—actually almost the entire agricultural and food sector, excluding FrieslandCampina, Van Rooi, and a few smaller players—made a final appeal not to forget their industry and those who keep them employed.
Counter-resistance for VNO
Their action seems belated, but was deemed necessary as a correction to the words of outgoing VNO chair Ingrid Thijssen last week. She called for a crackdown on the agricultural sector due to its nitrogen problems. This didn't sit well with many large companies. Not only did they write their own letter to the parties forming the coalition government, but most of them also resigned from VNO-NCW membership. FrieslandCampina didn't want to let things get that far.
Koopmans rejects former faction member
LTO Nederland also came out unexpectedly sharp this week. Chairman Ger Koopmans had always maintained a relatively neutral, almost detached, stance in the discussion about agriculture and nitrogen. He also remained relatively calm for a long time regarding the far-reaching nature plan (UPLG) of his former parliamentary party colleague Mirjam Sterk. Until this week, that is. Apparently, Koopmans felt compelled to take more sides. Suddenly, the UPLG was no longer a plan with serious prospects for farmers, but rather a plan for the gradual phasing out of agriculture, he said. Something other agricultural organizations have been noticing for some time.
Questions about new shelves
The plan for the reinstatement of product boards is striking and raises questions. What will happen to the trade associations if the product boards return? Will the BOs then fall under one large product board, or will they receive an upgrade in status and powers? Will they also regain their former statutory powers?
For some organizations, it offers perspective. Take the Nitrogen Claim Foundation (SSC). In recent years, it has strongly championed farmers' interests, often possessing more expertise than many other advocacy groups. This organization now has over 3.300 members, 2.200 of whom are dairy farmers. It has applied for representation in ZuivelNL, and would be ranked second among the most important farmers' organizations, after LTO (Dutch Farmers' Union), but ahead of all others.
SSC gets an edge
ZuivelNL, however, wants to make the admission more official, so to speak. While other organizations were admitted based on a few relatively simple insights into their membership database, ZuivelNL now believes that a comprehensive audit and statement must first be submitted before the admission can be assessed. Once this is approved, SSC will naturally have an advantage over the others, as it will have been thoroughly vetted. The step towards a seat on such a new product board will then undoubtedly be arranged as well. However, that's not yet the case. It's all still a pipe dream, hidden in the new coalition agreement.
Klaas van der Horst
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
