Brussels agrees to phosphate rights

The European Commission (EC) has given the green light for the introduction of the phosphate rights system. The introduction as of 1 January 2018 is now a fact. Earlier, Brussels considered the system a disguised form of state aid. The Netherlands then amended the law.

According to Brussels, the law now complies with European guidelines for state aid. European Commissioner Margarethe Vestager (Competition) reported this to Minister Carola Schouten. The House of Representatives and the Senate previously voted in favor of the system. The system will come into effect on January 1, 2018. The purpose of the phosphate rights is to limit the amount of dairy cattle phosphate.

Introduction is a fact
According to Minister Schouten, the introduction of the phosphate rights as of 1 January 2018 is now a fact. The Brussels agreement is positive for obtaining a new derogation. Schouten calls the decision of Brussels a 'great boost', but also warns dairy farmers. "We're not there yet," she said in a press release from the Ministry of Agriculture, Nature and Food Quality.

She refers to the importance of falling below the dairy cattle phosphate ceiling. Schouten expects Brussels to decide around April 2018 on the granting of the derogation for the period 2018 to 2021.

Discount and negotiability
Dairy farms will be allocated a certain amount of phosphate rights as of 1 January 2018 based on the number of cows kept on 2 July 2015 (reference date), minus the generic reduction of 8,3%. This discount is necessary to keep phosphate production below the European maximum.

Dairy farmers with a land-based business, with a lot of land in proportion to the number of cows, are exempt. The phosphate rights become tradable. Farmers who want to keep more cows will have to buy rights for this from dairy farmers who are reducing their livestock or ending their business.

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