Inside: Dairy Market

Transfer of phosphate rights is becoming more flexible

23 January 2018 - Bart-Jan van Zandwijk

The transfer of phosphate rights is becoming more flexible. Dairy farmers who enter into a partnership can now transfer the phosphate rights in more cases without the 10% discount.

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There is a 10% discount on the transfer of phosphate rights. Phosphate rights are also reduced in the event of business transfers. However, there are cases in which no discount will take place, for example in the case of a transfer before January 1, 2018, hereditary succession or a transfer in the first, second or third degree.

Rules interpreted more broadly
The Netherlands Enterprise Agency (RVO.nl) would now like to explain the transfer in the first to the third in more detail. It appears that transfers in which the livestock farmer himself enters into a partnership can also be transferred without a discount. In this way, a livestock farmer can also enter into a partnership with a neighbor who is not related by blood or marriage, and then the rights will be transferred without discounts. However, the transfer to a BV always results in a discount of 10%. After all, a BV is not a legal entity.

More options during a transfer

In the event of a business transfer, the 'business transfer' form must also be completed. In addition, the source data of the phosphate rights must also be transferred. A separate form has been made available for this. The data concerns the numbers of animals present on the company on July 2, 2015. The dairy farmer can also choose to transfer the reference to multiple parties. 

Single sale
The dairy farmer can also relinquish the phosphate rights through loose sales. The start of the transfer was January 15, from that moment it was possible to acquire the rights to be officially transferred. From January 1, 2018, a 10% discount will be given for every transfer, through skimming upon transfer.

However, those who hold rights must keep a number of things in mind. If applicable, an application must be made for the emergency regulations. The phosphate rights can also be increased by a declaration of cut-in or cut-out. Both must be reported to RVO.nl before April 1.

Rearing of young cattle
Whatever one chooses, the decision must be carefully scrutinized. If it is not correct, an objection can still be filed. This also applies to beef farmers. Young cattle from beef farmers also count towards the phosphate rights system.

LTO Netherlands is still investigating whether these young cattle can remain outside the system of phosphate rights; so this is still uncertain. Precisely for this reason it is important to carefully check whether all animals in the decision are listed under category 101 or 102, otherwise no phosphate rights will be allocated to these animals.

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