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Lots of buzz about buyback schemes

6 November 2020 - Redactie Boerenbusiness

This week the purchase scheme for peak loaders in the vicinity of Natura 2000 was published. There is a lot of uncertainty about this scheme and the national livestock farm purchase scheme, which is planned for next year.

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The conditions and frameworks of the Regulation on provincial purchase of livestock farms near nature reserves, as it is officially called, are similar to the pig farming restructuring scheme (SRV). The main difference with the SRV scheme is that it is only intended for pig farms and is primarily intended to reduce odor pollution. The peak load purchase scheme is intended to reduce nitrogen deposition in Natura 2000 areas.

Only companies that reduce deposition by more than 2 moles of nitrogen per hectare per year by stopping are eligible. They must also be located less than 10 kilometers from Natura 2000 area(s). Secondary goals such as combating dehydration can also play a role in determining who is eligible. The purchase will free up space to solve the problem of the PAS detectors, according to the Ministry of Agriculture, Nature and Food Quality.

Opposition to professional ban
According to lawyer Franca Damen and DLV Advies, peak-load livestock farms will be purchased at market prices, comparable to the methodology used in the pig farming restructuring scheme. This arrangement imposes a professional ban on participants. They are not allowed to start livestock farming elsewhere again. The peak load purchase scheme also contains this provision.

LTO opposes this and continues to insist that the hundreds of millions that the government wants to use to buy livestock farms near Natura 2000 areas could be better spent on emission-reducing measures by livestock farms. According to pig farming organization POV, due to the professional ban provision, only livestock farmers who are approaching retirement and have no successor will be interested in voluntary purchase.

Scope and possibility of expropriation
Stikstofclaim Foundation chairman John Spithoven points to a provision in the appendix of the Government Gazette text that does not rule out expropriation. If the government does not achieve results after negotiations on purchase, expropriation may be initiated, Spithoven assumes. The offending sentence is included in a paragraph on state aid. The Ministry of Agriculture, Nature and Food Quality emphasizes that the scheme is voluntary. DLV Advies advocates a provincial registration desk, so that provinces do not have to actively approach companies.

Questions are also being raised on social media about the scope of the 10 kilometer zone around Natura 2000 areas. This would mean that almost all of the Netherlands would fall within the scope of the peak load purchase scheme due to the fragmented location of Natura 2000 areas.

€10 million per province this year
In the Regulation on provincial purchase of livestock farms near nature reserves published by the Ministry of Agriculture, Nature and Food Quality, a maximum of €10 million is made available per province for the first round. The intention is that the scheme, which must be implemented by the provinces, will come into effect this year.

Nationally, this year a maximum of €95 million can be registered. A total of €2000 million will be available for the targeted purchase to reduce nitrogen deposition in Natura 350 areas. To determine whether a livestock farm is eligible, a special module has been added to the Aerius Calculator, which calculates the effect of the purchase on nitrogen deposition in Natura 2000 areas.

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