Stoppers scheme round two already less successful

Dairy farmers can still apply for the subsidy for the termination of dairy farming. The first round was oversubscribed within one day, but for round 2 the enthusiasm is much lower. What plays a part in this is the milk price in combination with the relatively low selling prices for cattle.

In the first round, the stopper arrangement still yielded 1.200 euros per dairy cow. In round 2, the premium does not exceed EUR 730 per cow. This is partly because the dairy sector is not allowed to make a contribution of 10 million euros. An amount that was collected through the increased contribution to ZuivelNL, but later turned out to be in violation of the rules regarding state aid. 

Opening on May 8
Monday 8 May went open the scheme and can be called upon until 14 May 2017. Lubbert van Dellen, van accon avm, showed earlier Boerenbusiness know that he thinks those who wanted to quit already grabbed that opportunity in the first round of the stopper scheme. 

To participate in the stopper scheme, the number of cattle on April 26, 2017 is assumed. Only if there was less livestock on October 1, 2016, does that date apply. This also means that those who already participate before the first reference date have taken steps to avoid a levy/fine for the months of March and April. 

For those in the first round there was the option to come up with an alternative stake for the soil, but now that the growing season has already started, it is a lot more difficult for those in the second round.

Another factor that plays a role is the combination of the milk price and the livestock prices. Bunnik recorded higher prices for slaughter and sausage cows in week 19. The export of cows that are pregnant for more than 5,5 months is allowed this round. Provided they are exported directly from the company. Usually the export countries first ask for a shorter or longer period of quarantine before the animals are welcome. The question is therefore which countries will stand up for animals that come directly from the dairy farm.

Who is it interesting for?
All in all, the scheme is only interesting for those who have decided to switch to a different business model (for example rearing young stock). It remains to be seen how many dairy farmers ultimately choose to participate in this round.    

Herman van den Pol

Herma van den Pol has been with us since 2011 Boerenbusiness and has developed over the years into a market expert Milk & Feed. In addition, she can be seen weekly in the market flash about the dairy market.

h.vandenpol@boerenbusiness. Nl

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