Shutterstock

Opinions Keith Maas

Why fertilizer tax is a stupid plan

7 November 2018 - Kees Maas - 32 comments

The ladies and gentlemen in politics in The Hague have once again come up with something that should bring farmers to a circular economy: the fertilizer tax. This levy on nitrogen fertilizers should encourage farmers to use less fertilizer.

However, what it really is is bullying the peasant and increasing the cost. Moreover, it puts Dutch farmers at a greater disadvantage compared to their fellow farmers in the rest of Europe. We want to realize circular agriculture, but every arable farmer knows that he does not supply enough for his crops with animal manure alone.

Moreover, in this way the arable farmer cannot make precise adjustments during the season. He is also hindered by the laws and regulations regarding the supply of sufficient animal manure, in order to maintain the soil stock. to hold.

Reward or punish
Apparently, politicians have not yet realized that you get further with rewards than with punishment. If you want the various sectors to work together, you have to reward this by, for example, giving more phosphate scope to collaborations between arable farmers and livestock farmers. Don't punish, that's the stupidest thing you can do. I think there is not 1 arable farmer who is less fertilizer will buy if a tax is imposed.

So it's stupid and unnecessary measure† Let the polluter pay, isn't it the policy? Then choose to increase the taxes in the Randstad, at the airport, in transport and in industry, but not at the farmer. Again with this rule the farmer has been bombarded to the head by the populist politicians, who have only one goal: to make the agricultural sector a head smaller and to make our country a national nature resort. We know how it ends if you leave it to officials, just look at the Oostvaardersplassen.

Boycott?
It may be an idea for LTO Nederland to block this plan and to call on arable farmers not to receive animal manure from fellow livestock farmers for 1 year. We'll see what the world will look like then. Minister Carola Schouten (Agriculture, Nature and Food Quality) says she is considering the alleged levy and does not rule out the possibility that her new policy includes such a measure.

In my view, the minister should first come up with a coherent plan. That plan should solve problems and remove restrictions on collaborations, instead of this kind of 'bite policy'. That only leads to more rules, more misunderstanding and higher costs. It's stupid and not thought through.

Keith Maas

Kees Maas is director of the DCA Group. He has more than 25 years of experience in commodities trading, both on the stock exchanges and in the physical market. Maas is a specialist in price risk management and a much sought-after sparring partner for food companies for their sales and purchasing strategy.
Comments
32 comments
pig farmer 7 November 2018
This is in response to it Boerenbusiness article:
[url=http://www.boerenbusiness.nl/column/10880440/waarom-kunstmesttaks-een-dom-plan-is]Why the fertilizer tax is a stupid plan[/url]
can someone please silence this kees maas, what nonsense to call on arable farmers to stop supplying animal manure.
what's the point in burdening pig farmers with even more manure costs than is already the case.
keep your mouth shut if you don't have anything useful to say, otherwise the last jack can turn off the light.
with friends like that you don't need enemies.......
Subscriber
jantje 7 November 2018
pig farmer wrote:
This is in response to it Boerenbusiness article:
[url=http://www.boerenbusiness.nl/column/10880440/waarom-kunstmesttaks-een-dom-plan-is]Why the fertilizer tax is a stupid plan[/url]
can someone please silence this kees maas, what nonsense to call on arable farmers to stop supplying animal manure.
what's the point in burdening pig farmers with even more manure costs than is already the case.
keep your mouth shut if you don't have anything useful to say, otherwise the last jack can turn off the light.
with friends like that you don't need enemies.......
Reading comprehension is a subject that not many people master these days. Read it again and try to get the gist of it. It does not say anywhere that arable farmers should not supply animal manure...
Subscriber
Kees Maas 7 November 2018
pig farmer wrote:
This is in response to it Boerenbusiness article:
[url=http://www.boerenbusiness.nl/column/10880440/waarom-kunstmesttaks-een-dom-plan-is]Why the fertilizer tax is a stupid plan[/url]
can someone please silence this kees maas, what nonsense to call on arable farmers to stop supplying animal manure.
what's the point in burdening pig farmers with even more manure costs than is already the case.
keep your mouth shut if you don't have anything useful to say, otherwise the last jack can turn off the light.
with friends like that you don't need enemies.......
Thanks for the feedback and for reading the article.
I'm not calling for this boycott, but it's about thinking about solutions that do work, and not by levying a tax on fertilizer. Arable farmers and livestock farmers can reinforce each other, but not in the way the political climate is now.

Good luck pig farmer, at least you show that people need each other, don't let politics play you out
hans 7 November 2018
Kees Maas, you are not calling for this boycott, but you are calling:

"Perhaps it is an idea for LTO Nederland to call on arable farmers not to receive animal manure from fellow livestock farmers for 1 year".

Nice, isn't it, calling on others to do something, but staying out of harm's way yourself. You can go into politics that way.
farmer's wife 7 November 2018
Oh, talk about populism! I think this piece has an uplifting and populist tone. I read "stupid", "dumb" and "dumbtest". I read "peasant bullying". I read a call to incite a "boycott". I don't read any substantiated arguments. It would be nice to go back to basics. The arable farmer needs manure and the livestock farmer has too much manure. Let's look for solutions. I understand that this is not a popular measure for you. There are big players in the Dutch fertilizer market that have the farmer in their pocket and maybe the sites they advertise on too.
john 7 November 2018
The fact that the agricultural sector has specialized in recent decades does not mean that we can do without each other.. Land-based livestock farming also includes livestock-based arable and horticultural farming. After all, cows and pigs eat (residual) flows from those sectors and it therefore seems only normal to me that the residual flow is returned to the field.


milker for nothing 7 November 2018
I think as a livestock farmer we should all just keep the cows indoors for a year
Jan 7 November 2018
@CM the dumbest thing you can do. I don't think there is 1 arable farmer who will buy less fertilizer if a tax is introduced.
It just depends on how high the tax will be.

But a tax on GBM seems more obvious to me.

@CM sets a coherent plan from the minister to arrive at circular agriculture as a condition.... for what?
Such a plan does not come from the minister and CM should not wait for that either
This can and should be done by the sector as a whole, possibly. develop with experts themselves, all the more so as to be free from directives and rules from Brussels and The Hague. Do it yourself.

CM, as an expert market consultancy and risk management I think you can use your capabilities and knowledge to contribute to this (of course for free) instead of. stupid, stupider, stupidest to call.

Does CM have any insight into how circular agriculture (not as a scheme) works or will work?
With grits in the ground, in the cow rumen, maturation of manure, etc? In any case, the minister does not charge that and neither do her officials.

It entails a bit more than sticking together a number of CM business processes.

And minister or no minister, sooner or later we really have to deal with it, because things can no longer be as things are now. Then better start early.
CM first listens to the organic farmers. This is being considered.
Jan 7 November 2018
@CM the dumbest thing you can do. I don't think there is 1 arable farmer who will buy less fertilizer if a tax is introduced.
It just depends on how high the tax will be.

But a tax on GBM seems more obvious to me.

@CM sets a coherent plan from the minister to arrive at circular agriculture as a condition.... for what?
Such a plan does not come from the minister and CM should not wait for that either
This can and should be done by the sector as a whole, possibly. develop with experts themselves, all the more so as to be free from directives and rules from Brussels and The Hague. Do it yourself.

CM, as an expert market consultancy and risk management I think you can use your capabilities and knowledge to contribute to this (of course for free) instead of. stupid, stupider, stupidest to call.

Does CM have any insight into how circular agriculture (not as a scheme) works or will work?
With grits in the ground, in the cow rumen, maturation of manure, etc? In any case, the minister does not charge that and neither do her officials.

It entails a bit more than sticking together a number of CM business processes.

And minister or no minister, sooner or later we really have to deal with it, because things can no longer be as things are now. Then better start early.
CM first listens to the organic farmers. This is being considered.
Arable Farmer2.0 7 November 2018

Today 13:07 AM
The fact that the agricultural sector has specialized in recent decades does not mean that we can do without each other.. Land-based livestock farming also includes livestock-based arable and horticultural farming. After all, cows and pigs eat (residual) flows from those sectors and it therefore seems only normal to me that the residual flow is returned to the field.

In your opinion, can an arable farmer supply the same amount of nitrogen and phosphate as his colleague livestock farmer with a derogation.

The average arable farmer is not even allowed to supply the waste again.

Soil stock is decreasing every year, and then we would also have to do without fertilizer??

Livestock farmers are already complaining about high feed costs.
Frisian girl 7 November 2018
I think we should stop blaming each other, we all know by now that crazy plans are being devised in The Hague and Brussels that are (usually) not based on truths, We should work together en masse to go on this coaster turn.
The Netherlands does not have a manure problem, that is imposed on us from above, Playing everything through the media also makes no sense, it only creates more unrest, Put your shoulders under it together and show society that it is not bad... .

We have to somehow come together to counter offensive, which apparently an LTO cannot succeed (or any other advocate) Even our suppliers/customers don't want to take the trouble to stand up for the farmers
it is in our experience 1 minute to 12,

HOW WE GET THE NETHERLANDS AGRICULTURE ON A LINE TO RUN AGAINST THE AMAZING IDEAS FROM THE HAGUE

And how can we convince them of many misconceptions that are used against us again?

With these kinds of statements (colums) we must be stimulated to respond, unfortunately that always goes into the negative.....
It is a pity that if you are not familiar with reality, there are always people who give their opinion about it through the media and subsequently elicit all kinds of reactions, which are (also) not always justified.
Kees 7 November 2018
Let's first align the agricultural sector in the Netherlands now there is too much division look at the French if they disagree they all disagree and there are actions here someone shouts something useful and good and massively there against or own opinion but not to joint action
Jan 7 November 2018
@Friezinetje. Is circular agriculture a crazy idea? or is it crazy because it comes from The Hague?
Frisian girl 7 November 2018
@Jan, Kringloop Landbouw Fine, or with honest values, (company-specific), and give the farmers the opportunity to implement this properly and not impose it from above with all the rules around it, which makes export impossible.
We will have to tackle it from the bottom up, otherwise it will never work.
Give those who want the space to perform it and don't keep kicking the tail so that it comes to a stop again.
Reward initiatives and encourage collaboration!
Arnold 7 November 2018
Dear people, let's not speak the emotion for a while and soberly see what the problems are and how to solve them.
Let me tell you that we have the knowledge to indicate that the solutions that the minister has in her vision document are possible. That the solutions based on FUNDAMENTAL knowledge are within reach without it hurting the sector too much. In fact, a revenue model is possible so that the necessary investments can be amply made. Without us getting a sector that does not make society happy. All problems solved, and I know what I'm saying, while maintaining a desired sector. Food production that makes everything healthy. The soil, the plants, the environment and the animals and people. This results in enormous cost savings for society, through environmental benefits, biodiversity in and on the soil, and 20 to 40% cost savings on healthcare costs. the key is 400 BC when Hippocrates said, “Let food be thy medicine, and thy medicine be food.”
We can produce that food at a higher cost without it costing the consumer more. No, he will save on healthcare costs. And the producer gets what he deserves so that the continuity of his company is not jeopardized.
The bad thing is that in a few personal meetings with our minister I indicated this and she was looking for an opportunity to sit at the kitchen table to discuss things.
You guessed it not a minister, but such measures are not based on FUNDAMENTAL knowledge.
Have they not suffered from the ammonia and phosphate debacle? Well, no, there are still a few more. Why don't innovative ideas from the primary sector get room where everyone says the sector must apply the golden rule itself, then at least listen to entrepreneurs who dare to stand out from the crowd on the basis of your social responsibility.

In any case, Kees took action and shook up the bed.
hans 7 November 2018
Healthy food for affordable prices and lower healthcare costs, who wouldn't want that?

Well, I can name a few multinationals that are averse to that. The Food-Pharma complex that will do everything to keep their business model intact. From ignorant politicians by letting shady "experts" take their side, to large-scale misleading advertising campaigns promoting their products.

And the consumer, like the farmer, the individual has a different interest than the whole. Lower healthcare costs, great, but pay a little more for food, let the others do that, I have a win-win.
Jan 7 November 2018
@Friezinetje. Isn't that what the minister is proposing?

The problem lies in the EU, which imposes all kinds of restrictions, including on the minister. And we have to get rid of that before a development that is useful for the Netherlands can be deployed.
Tell your VVDer Huitema.
You mention rewarding.... but the reward lies in good practice.
Those who want to frustrate circular agriculture, especially because they go for the short term, will in my opinion make life impossible in the long run.

As you yourself write, we will develop circular agriculture (requires quite a bit of knowledge development) together.
I don't see how the Dutch ministry is swarf about this.
However, a lot of regulations about the fence are necessary and the minister sees that too. We handed over control of our country to Brussels and that was wrong.
bacon steak 7 November 2018
the article puts the problem in the wrong place. point 1: why no nitrogen concentrate from manure processing instead of artificial fertilizer point 2 precise adjustment is important for the crop, but that is not always possible, so a wider application of minerals that are circular (manure) compared to fertilizer is needed. point 3 and if more minerals are harvested than are added, an increase must also be possible. point 4 pretending it's a big problem only leads to losers.
bacon steak 7 November 2018
the article puts the problem in the wrong place. point 1: why no nitrogen concentrate from manure processing instead of artificial fertilizer point 2 precise adjustment is important for the crop, but that is not always possible, so a wider application of minerals that are circular (manure) compared to fertilizer is needed. point 3 and if more minerals are harvested than are added, an increase must also be possible. point 4 pretending it's a big problem only leads to losers.
Seed potatoes and bulbs 7 November 2018
This concerns the level playing field of the Dutch farmer, competition within Europe should be equal. So responders, throw your own interests over the fence, don't get bogged down in bickering among themselves, but make a clear answer to politics. One European policy in which emissions to the environment become the guiding principle for the whole of Europe. A policy in minerals and pesticides. And certification for the rest of the world to be able to export to the EU. Equal values ​​equal opportunities.

We as Dutch farmers are innovative enough to transform our sectors into environmentally friendly strong competitive money makers
Arnold 7 November 2018
Hans 15.42 pm Where did you read More expensive food for the consumer?
Read my response again carefully, sometimes you see new things for the second time.
The Frisian girl is a woman after my own heart, can't help but have one myself, well have it.
Connecting with the Burger is also an opportunity.
Take a look at BB4FOOD.
Or Soil Food.
clayi 7 November 2018
As a trader in fertilizer in Belgium on the border with the Netherlands, a tax on fertilizer would suit me well
Kees 7 November 2018
If we were to use considerably less fertilizer in Europe, the news reports might one day contain the word 'food crisis'. See who beeps the loudest.
common sense 7 November 2018
In the fertilizer-free era, 5ha of heathland were needed to keep 1ha of arable land fertile. Purely circular agriculture goes back to the situation 150 years ago. Or do the visionaries think the use of manure from animals fed with imported grain is OK? In that case, they measure with two standards. This imported grain is also produced with fertilizer, and just as less circular as the direct spreading of fertilizer.
hans 7 November 2018
Arnold, you write

"We can produce that food with more costs without it costing the consumer more, no, he will save on his health care costs"

Producing food with more costs, so it must be paid more expensive than now, after all, the producer already supplies below cost. In other words, more expensive food, which can be paid for by the consumer because it saves on healthcare costs.

However, as I wrote, consumers would like to save on health care costs, because they live healthier together, but each individually probably does not want to pay for the more expensive food.
Subscriber
Skirt 7 November 2018
Slowly it is no longer to be taken seriously, the rest of the world continues, they really don't need NL, the gap is filled in no time.
It is now clear that Schouten van de NL Landbouw wants to make a vegetable garden for the children with a few cows and sheep.
You can laugh or cry about it, but I didn't even expect it to go downhill so quickly.
Jan 8 November 2018
@Kjol, you've been staring into the ravine for ages. Any zest for life left?
Why don't you emigrate? The future is not in the past or emaciated, dead ground.
They can do better outside the Netherlands. Then go there.
Skirt 8 November 2018
Jan wrote:
@Kjol, you've been staring into the ravine for ages. Any zest for life left?
Why don't you emigrate? The future is not in the past or emaciated, dead ground.
They can do better outside the Netherlands. Then go there.
Don't be annoyed, just marvel.
Subscriber
John 9 November 2018
We just send Marc Balon to The Hague who will arrange it!! He is good with Schouten and Hogan, among others, he even has their 06 no....
Van Gaal 10 November 2018
Dear Kees. Congratulations for this excellent text!
Arnold 10 November 2018
Hans Wednesday 22.55 pm As I wrote, he no longer has to pay for the food and on top of that he will save on his healthcare costs.
You don't believe I wrote this thoughtlessly, do you? The fact that you don't see the solution doesn't say anything about the elaborated idea we have. But assume that it is possible, otherwise it is called thinking otherwise or out of the box.
hans 10 November 2018
Arnold, how do you want to bring your better food to the consumer?
Perhaps you will try to pass the middlemen, where the largest price jump in food is now being made (difference producer price-consumer price), and thus make the consumer price your selling price?

However, the chain store will not just give up part of its turnover, it will purchase abroad and compete on price. There she still has a lot of flexibility, partly due to tax advantages.
The large proportion of processed agri products will also remain to their financial advantage due to large-scale and purchasing power, and you can already supply this with a higher cost price compared to abroad.
As a final obstacle, you have to take the consumer out of the convenience of his purchasing pattern, now a lot in one supermarket, soon everything will be bought everywhere, where time and convenience are the critical points in shopping.
You can no longer respond.

What are the current quotations?

View and compare prices and rates yourself

Analysis Fertilizer

Import duty drives up price of Russian fertilizer

Analysis Fertilizer

Fertilizer: hardly any demand, price drop in the offing?

Analysis Fertilizer

Higher gas price further boosts fertilizer market

Analysis Fertilizer

Rising fertilizer prices have multiple causes

Call our customer service +0320 - 269 528

or mail to supportboerenbusiness. Nl

do you want to follow us?

Receive our free Newsletter

Current market information in your inbox every day

Login/Register