New in phosphate regulation is young stock

A new term has been included in the 2017 Phosphate Reduction Regulation: the young stock number. The Regulation is not getting any clearer. What are the core changes to the Scheme? 

Shortly before the commencement of the summary proceedings concerning the Phosphate Reduction Regulation 2017 announced outgoing State Secretary Van Dam to limit the Regulation to milk-producing companies. Shortly afterwards, the House of Representatives also promised to spare rare pet breeds. The two announced changes have now been translated into an amendment to the Regulations. This immediately prevents the removal of cattle to farms exempt from the scheme from still counting as a reduction. The new concept that has been introduced: the young stock number.   

Young stock numbers against avoidance
Van Dam has decided to limit the scheme to dairy farms. This limitation threatens the reduction targets. If the removal of cattle to non-dairy farms would count as a reduction and the cattle remain in the Netherlands, the removal would have no effect on the phosphate ceiling. The question is: How is it ensured that cattle are actually removed and return to the farm is excluded? To prevent the reduction assignment from being circumvented, he makes 2 adjustments:

1. For each milk-producing farm, a young stock ratio determined as of 28 April 2017. This young stock number is calculated by determining the ratio between young stock (female cattle from 0 to 1 year and older than 1 year that have not yet calved) and the number of calved cows. The removal of young stock only counts if an equal number of dairy cows is removed in LU ratio.
2. For cattle that have calved at least once, all removal counts as a reduction. When the removal to a non-dairy farm takes place, these cows are not allowed to return to the original removal farm within 1 months. If this does happen, a recalculation of the levy will take place with retroactive effect. This solution makes it possible that discharge to farms that fatten the cows is normally possible. 

How do you calculate the young stock number? 
The young stock number is the number that is calculated by dividing the number of cattle of the dairy farmer on 28 April 2017 from 0 to 1 year and from 1 year and older that have not yet calved by the number of cattle that have calved at least once on that day . In order to achieve the prescribed LU reduction, the share of young stock in the total dairy herd must therefore remain the same. As long as this ratio is met, the removal of young stock can take place to any farm (dairy-producing or non-dairy).

Rare cattle breeds
The Scheme included an exception for veal calf farmers. This expires because non-dairy farms are no longer covered by the Regulation. The transport of cattle to approved assembly centers and export stables will be maintained in full. The exception regulation will be extended to the increase of cattle of the Brandrood cattle, Frisian Dutch cattle, Roodbont Frisian cattle, Groninger blaarkop and the Lakenvelder. A condition is, however, that the cattle are marked in the I&R system. This must be done in a manner to be specified by the State Secretary. 

Entry into force
The amendments to the scheme will come into effect on 1 May 2017. For the parts of the scheme that related to non-dairy farms, the adjustment is retroactive to 1 March 2017. Non-dairy farms are therefore excluded from the scheme with retroactive effect. 

Exciting weeks ahead
In the summary proceedings regarding the Phosphate Reduction Regulation 2017 The ruling of the preliminary relief judge of the District Court of The Hague is expected on 4 May. Within a few days, decisions will also follow on the problems reported by dairy farmers.
On Tuesday 16 May 2017, the Senate will consider the legislative proposals for phosphate rights for dairy cattle and land-based growth in dairy farming in a plenary session. The phosphate regulation is therefore in a crucial phase.

Peter Goumans

Peter Goumans is a lawyer at Hekkelman. He focuses on the agricultural sector and closely follows developments in this sector. In his blogs he discusses legal issues in the agricultural sector.

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