Accident regulation extended with two situations

The creaming percentage has been definitively set at 8,3% and 2 situations have also been added to the bottleneck scheme. This is apparent from the General Administrative Order (AMvB) that was published in the Government Gazette on Thursday 28 December.

The above points were already known, but have now been officially laid down in an Order in Council. This is part of the introduction of the phosphate rights system, which took effect on 1 January. What is still unclear is what will happen to the available rights from the phosphate bank.

Skimming percentage
The creaming percentage is coming out at 8,3%† This applies to companies that are not land-bound. The land-based companies therefore do not receive this discount. At the farms with a small surplus, a discount is applied for the part that they are not land-bound. However, this discount does not apply to an increase or decrease in the number of allowances when shearing in and out. 

When companies are taken over, the situation as it was on July 2, 2015 (before the takeover) applies. If the original company was land-bound in 2015, the phosphate right will also be transferred without a generic discount.

Accident regulation
In addition, 2 new situations have been added to qualify for the bottleneck scheme. It concerns a newly started company and the realization of a nature reserve or public infrastructure.

Newly started companies can be considered a bottleneck if they meet the following conditions:

• They must have entered into irreversible financial obligations.
• On 2 July 2015, they must have obtained an environmental permit for the establishment of a company or have submitted a notification of the Environmental Management Activities Decree for the keeping of dairy cattle.
• They must have started producing milk for consumption or processing between 1 January 2014 and 2 July 2015. So cheese makers can also qualify for this.
• They must have at least 1 dairy cows by January 2018, 15.

The increase in the phosphate rights concerns 50% of the difference between the number of rights allocated and the number of rights that could be present, with the barn capacity that was present on 2 July 2015. The increase is only applied when the difference between the two situations is greater than 10%.

Realization of a nature reserve or public infrastructure
Companies that, due to the realization of a nature reserve or the maintenance of public infrastructure, have kept less livestock/have less phosphate space, may be eligible for additional rights. The increase is not applied if the difference in production is less than 5%.

Applications for the shortage scheme must be submitted to the Netherlands Enterprise Agency (RVO.nl) no later than April 1, 2018. The form for shears in and out must also be submitted before this date.

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