Inside: Dairy Market
How does test exempt farmers from phosphate plan?
Dairy farmers who believe that the consequences of the rules of the phosphate reduction plan are too great can have this checked at the Netherlands Enterprise Agency (RVO.nl). If they turn out to be a bottleneck, they will be granted a postponement of payment until after the appeal. The State must give the dairy farmers, who believe that they are in trouble, a decision within 2 weeks. What does this test mean and how does it work?
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The preliminary relief judge in The Hague responded Wednesday 9 August ruling in summary proceedings against the phosphate reduction plan. Out the verdict it has emerged that the phosphate reduction plan must be inactivated for participating dairy farmers. Those who score positively on a new test will be granted a deferral of payment until the outcome of the appeal.
Awaiting the hearing of the appeal the Netherlands Enterprise Agency developed the light touch. This test has been introduced for companies that believe that their situation corresponds to that of the claimants of May 4. On this date, the first group of dairy farmers was excluded from the phosphate reduction plan.
No fines
Dairy farmers who request an assessment from the State and are classified as a problem on that basis will be charged a levy. However, this does not have to be paid immediately. The judge also said that the dairy farmers who filed the summary proceedings should no longer be fined.
light key
The Netherlands Enterprise Agency has been carrying out a light test for some time. So far, the government has received 140 applications for the test. About half of these have been honored and designated as emergency cases. The judge has now decided that the State must also carry out a test at very short notice among those who request it.
Dairy farmers must apply to the State for this test. They must then provide all the necessary documents that RVO.nl requests from them. The test must initially demonstrate that:
- The growth is in accordance with the Responsible Growth Dairy Farming Act.
- They entered into irreversible financial obligations before the reference date and that these had not yet been used at the time of the reference date.
Postponement is not adjustment
The fact that RVO.nl carries out a light test on dairy farmers who report is not important for determining whether this constitutes a violation of ownership rights. This test can play a role in determining whether these dairy farmers are treated equally (fair balance).
The test does not result in changes to the scheme, but constitutes a new working method. This is pending the results of the test appeal, which was established by the State Secretary. For the time being, it only applies as a deferment of payment for the group that receives a positive assessment.