News Phosphate rights
Skimmed phosphate rights can only be used in 2019
At the beginning of June, there were almost 145.000 kilos of phosphate rights in the so-called phosphate bank, but these rights can probably only be used in 2019. This is what Minister Carola Schouten (Agriculture, Nature and Food Quality) writes to the House of Representatives.
Furthermore, Minister Schouten emphasizes in the letter to parliament that there will be no separation of production rights within the various animal sectors.
Opening in September
With every transaction, 10% of the traded rights is skimmed off. When the rights are traded within the family, the skimming percentage does not apply. Schouten says that on 7 June there were almost 145.000 kilos of phosphate rights in the phosphate bank. As she indicated earlier, she aims to open the phosphate bank on 1 September, for a period of 4 weeks. In the following period, the applications will be assessed.
The rights that will be awarded in 2018 will most likely only be available for use in 2019. This is because entrepreneurs must have clarity before December about any allocation of extra space. Otherwise, entrepreneurs would be short of time to take measures.
Many rights traded in February
The phosphate bank shows that most phosphate rights were traded in February. In that month 39.500 kilos were added to the phosphate bank. March follows in second place; 2 kilos of phosphate. Relatively few rights were traded in May. During that month 30.000 kilos of phosphate entered the phosphate bank. Schouten does not dare to predict how many phosphate rights there will be in the phosphate bank at the end of 17.500. This because the market conditions erratic and therefore difficult to estimate.
Every dairy farmer can claim rights from the phosphate bank, provided they are land-based. However, those with a pilot house status are not given a preferential position. Minister Schouten also informs us that the phosphate bank is not there to meet the so-called bottlenecks. The amount of rights within the phosphate bank is too limited for this. A separate provision has been made for pinch points. With regard to the bottleneck regulation, the following applies: 'equal monks, equal hoods'.
no decompartment
In the letter to Parliament, Schouten emphasizes once again that there will be no separation of production rights within the various animal sectors. Converting pigs- and poultry rights to phosphate rights would mean that dairy farming would exceed the sectoral phosphate ceiling, while the amount of phosphate rights issued already exceeds the sector ceiling.
The European Commission has just indicated that the amount of phosphate rights issued may not exceed the sector ceiling, as laid down in the sixth action program Nitrates Directive. The Commission sets this requirement because of the state aid approval granted for the phosphate rights system.
Click here to read the entire letter to parliament.
Wouter Job
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