News Take action
Proposal: tax deferral for sustainable investment
Deferring taxes on (part of) the profits of agricultural entrepreneurs to invest in climate, nitrogen, water quality, and animal-friendly livestock farming. This is the proposal from agricultural organizations, including the Dutch Federation of Agriculture and Horticulture (LTO) and the Netherlands Academy of Arts and Sciences (NAJk), market participants, and the Dutch Society for the Protection of Animals. They are calling on the parties forming the coalition government to develop and implement the proposal for what they call the "Fiscal Investment Reserve for Agriculture (FIL)."
In September the (old) House of Representatives adopted a motion by SGP member Chris Stoffer requesting that the government investigate options for better aligning corporate tax with agricultural practices, for example, through a multi-year carry-back loss account and a fiscal investment reserve for barn renovations to benefit the environment and animal welfare. According to the NAJK, their proposal aligns well with this motion.
"The FIL gives young entrepreneurs more control over their own investment path, without being dependent on subsidy programs. This makes sustainable choices more feasible and increases the continuity of the family business," said Eise Tonnis de Vries, dairy farmer and portfolio holder for future-proof entrepreneurship at NAJK, in a press release.
The scheme also offers advantages for the government, according to LTO: "Instead of direct subsidies, the FIL involves temporary tax deferral. This limits the pressure on national finances, while achieving the same social goals faster and more cheaply."
Tasks for animal-friendly livestock farming
Besides nitrogen and water quality challenges, livestock farmers also face additional animal welfare requirements. In June, livestock farming and animal welfare organizations signed the Animal-Friendly Livestock Farming covenant. This aligns with the general administrative order Animal-Friendly Livestock Farming 2040 – which has been declared controversial and therefore needs to be addressed by a new cabinet. Elbert Roest, the administrative coordinator of the consultation on animal-friendly livestock farming and the National Innovation Envoy for sustainable livestock farming, said in a statement: "With the Agricultural Fiscal Investment Reserve, the sector can contribute to solutions for major societal challenges, while the government allocates its resources more effectively. This is good for farmers, good for policy, and good for broader prosperity."
The organizations have not yet made the actual proposal public.
Linda van Eekeres
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
