News Phosphate rights

Fraud with dry cows and Kringloopwijzer?

31 May 2018 - Herma van den Pol - 4 comments

The risk of fraud is still too great, which is why there will be no pilot of the Kringloopwijzer for the time being. Carola Schouten, Minister of Agriculture, Nature and Food Quality, made this known in response to questions about phosphate rights. She considers fraud with dry cows less likely.

What is the status of phosphate rights? Minister Schouten answered a number of questions in a letter to parliament burning questions. At the same time, she again indicated that the regulations surrounding the phosphate bank and the exemption for young stock that will never calve (beef cattle) is still in the making.

Profit from phosphate right still nil
An important subject that the VVD (through Helma Lodders) raises is the pilot of the Kringloopwijzer. The system of phosphate rights is set up in such a way that dairy farmers can do more with fewer rights (by focusing on phosphate); otherwise animal rights would have sufficed. To make this possible, the Recycle pointer necessary, but therein lies the crux. When Schouten discovered that 'fraud' had been committed with the I&R administration she immediately canceled the pilot.

Huge financial gain is an incentive for incorrect registration

Now the VVD asks whether the trial can still go ahead, because it turned out that the fraud mainly consisted of administrative irregularities. Schouten thinks otherwise, however. "If the financial gain is great enough, then there is simply an incentive to register the data incorrectly. This risk is also present when the Kringloopwijzer determines the amount of manure produced."

This opinion is also supported by the advice of the Netherlands Food and Consumer Product Safety Authority (NVWA). He states that the Kringloopwijzer cannot yet be enforced. "I do not foresee that a pilot of the Kringloopwijzer, in relation to the phosphate rights, can be started in the short term," says Schouten

Feed up close
A pilot requested by the CDA is about 'feed from close by'. This in the context of the binding advice on land-relatedness, but the minister cannot anticipate that yet. Schouten does say that the importance of 'feed up close' is a relevant subject. It is therefore an aspect that will be considered when reviewing the fertilizer regulations. Its not about feed-manure agreements, because there she sticks to her position: they will not come.

Everything revolves around preventing data and animal tampering. In this context, the VVD asked the question whether it is true that dry cows, when placed in another company, evade the phosphate legislation. Schouten responds: "Phosphate rights are also needed for the dry cows. At the moment I have no concrete signals that dry cows are being housed elsewhere on a large scale." If this does happen, the company where the animals are kept still needs rights.

Overview of bottlenecks
Other developments are lacking, apart from an overview of the bottlenecks. This is 2.400. In addition, the group is actually even larger, because there are still issues surrounding transfer situations. This group will be expanded with 61 appeals and 15 preliminary injunctions. Another 6.000 businesses have objected to the decision. It means that slightly more 25% of dairy farmers do not agree with the decision.

Objections to phosphate reduction plan dealt with at the end of July

There are also several hundred companies in the beef farming sector that have applied for the granting of phosphate rights retrospectively. The Netherlands Enterprise Agency (RVO.nl) will not do anything about this until the details of the exemption scheme are known.

Yet another group is the 10.000 dairy farmers who objected to the 2017 phosphate reduction plan. 3.000 of these farmers appealed to a special situation. At the end of July, Schouten hopes that the objections have been dealt with. With regard to the sums of money that may be imposed, the minister indicates that he will take the decisiveness of the entrepreneur into account. 

Generic discount?
Has all uncertainty disappeared when the cases of this rather large group of livestock farmers have been dealt with? New. Schouten emphasizes that if the phosphate ceiling in 2018 is exceeded, a solution will first be sought with the sector. However, if this does not meet the requirements, a generic discount may follow. The tension here is between the issuance of the number of rights and the calculated production by CBS† The second is too high and thus perpetuates the uncertainty. 

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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.
Comments
4 comments
Charlie 31 May 2018
This is a response to this article:
[url=http://www.boerenbusiness.nl/melk-feed/ artikel/10878728/fraude-met-dry-cows-en-kringloopwijzer][/url]
As long as such extreme amounts are paid for phosphate rights, you would be crazy not to tamper with the cheat indicator and thus get extra production space for free. It's hard to have an inspector watch every day at every farmer, so this will never be 100% guaranteed, so the KLW will never come.
jpk June 1, 2018
As long as nitrate measurements are not 100% reliable, fraud acts can be defended very well
bart June 1, 2018
non-soil-bound non-growers are hit hardest of all.
they have neatly bought milk quota in the past. and now they are cut more than 8%. the promised recovery with the bex is canceled for the time being. all this thanks to the underhanded way of lobbying thorough etc.
they have not been cut and often have grown considerably after 2014
The Dirk June 1, 2018
How extreme amounts.
8000 euros per cow approximately.
Milk quota cost almost 16000 per cow.
nic June 2, 2018
tackle the growers that have caused this phosphate problem. And not on the backs of the non (max. 10%, for example) growers. As well as organic farmers and rare breeds, they often have plenty of land to sell their own manure.
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