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What an enthusiasm for the stoppers scheme
It has been a much discussed item in recent months, the stop scheme for dairy farming; one of the medicines to rigorously tackle phosphate reduction in the Netherlands.
After approval from Brussels and announcement of the registration date of February 20, 2017, it has apparently become a serious topic of conversation at the kitchen table among a relatively large group of dairy farmers. The enormous oversubscription has surprised everyone, but it does indicate what the situation and motivation really is in this sector.
The problem also lies in the government's rigid attitude towards phosphate rights. Tons of manure are exported every week to countries such as Germany and Northern France. All this manure falls under the phosphate legislation, while it is not used in the Netherlands.
The exporting farmers can continue to exist if this exported manure is included in the phosphate production in a different way. Other countries are jumping for this manure, the Netherlands gets paid for it. Instead of correcting this in legislation, the government encourages our farmers to stop doing what they love most: farmers!
Who wants to stop?
Quitting your business is not just a thing. But for companies that have invested too much in anticipation of the abolition of the milk quota, the stopper arrangement can offer a solution. Emigrants may also have postponed the sale of their company in order to be able to cash in on the proceeds from the phosphate rights.
Closing the business is always a tough and emotional step. But for elderly entrepreneurs, without succession. And also for fellow farmers who simply no longer feel like producing milk under the current overdose of legislation and regulations, the stoppers scheme may be a welcome solution.
The proposed lottery is now off the table and the budget has been increased from 12 to 38 million euros. One more opening will follow. It is expected to open in May. The exact opening period, amount of the subsidy and the conditions for subsidy in this second round have not yet been announced.
Effect on sector
The number of quitters also has an effect on the sector. Together with the phosphate reduction from the feed track and the LU reduction plan, this will lead to less demand for land for fertilizer disposal. Fewer animals means less manure. But fewer animals also means less crowds at the feed fence.
The demand for (rough) feed products is falling. And fewer animals also mean less need for extra land, as a result of the land-related nature of the Dairy Cattle Act. But on the other hand, we also see investment needs from the other sectors. Both arable farming and intensive businesses are entering the land market. And the government and project developers are also bringing commotion to the real estate market again.
It has been known for a long time that we would enter a turbulent period. An X number of dairy farmers will make the choice to stop or to continue their business outside the country's borders. For the large group of stayers, it is important to keep their wits about them, to ensure the timely removal of livestock and to try to get through 2017 with as little damage as possible. The dairy farming sector will have to bite the bullet.
Hans Peters RT REV
Chairman of the Agricultural Real Estate Section
