Wiermans

Inside Pigs

This is what Schouten's remediation plan looks like

30 April 2019 - Redactie Boerenbusiness

Only pig farmers who cause significant odor nuisance in homes within a radius of 1 kilometer are eligible for a subsidy to stop. The draft conditions for the pig farming subsidy scheme illustrate this.

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Pig farmers were eagerly awaiting the scheme, which had been discussed for more than a year by Minister Carola Schouten (Agriculture, Nature and Food Quality) and the parties involved (united in the Vital Pig Farming Coalition). The government is intervening in this way because the concentration of intensive livestock farms in various places in the country has caused emissions of odor, particulate matter and ammonia. Now the minister is stepping up to solve this.

€200 million available
It was known that €120 million will be earmarked for renovating the buildings. In addition, pig, poultry and dairy goat farmers are given the opportunity to green their business. This way they can receive a subsidy when they invest in new and less burdensome housing systems. €60 million is available for this, of which €40 million for pig farming, €15 million for poultry farming and €5 million for dairy goat farming.

The now published scheme contains the further conditions for the scheme: 

  • Only pig farms that have been used continuously in the last 5 years before closure are eligible for a subsidy. Participants in the stopper scheme of the Ammonia Livestock Farming Action Plan are not eligible for a subsidy.
  • Pig farming locations that have the highest odor score are the first to be eligible for a subsidy (in case the available budget of €120 million is insufficient to allocate all applications). The odor score is in line with the principles of the Odor Nuisance and Livestock Farming Act and the Odor Nuisance and Livestock Farming Regulations.
  • According to the minister, entrepreneurs who are eligible for a subsidy will receive a competitive compensation for the pig rights to be surrendered and definitively canceled. These are differentiated by concentration area South and East. They also receive compensation for the loss of value of their pig stables.
  • To minimize the risk of the scheme disrupting the market, the amount of the compensation for the pig right to be canceled is determined a few days prior to the opening on the basis of the then applicable market price.
  • The compensation for the stables is calculated on the basis of a subsidy percentage and the corrected replacement value of the stables and is based on a new construction value of €470 per m2 (both fattening pig and sow stables). In the context of the SRV, a current sales value of 20% of the replacement value after the tax depreciation period of 40 years is assumed. The ministry has drawn up a table so that pig farmers can even calculate the subsidy for their stable based on the size and age of the stable.
  • KWIN Veehouderij uses various tax depreciation periods for the hull (40 years), the finishing (20 years) and the furnishings (10 years) of the stable. The age of the hull of the stable determines the correction to the replacement value.
  • The subsidy percentage is 65%. This was determined in consultation with Wageningen University, so that the subsidy is attractive for pig farmers to participate in the scheme. However, the compensation must be proportionate to the consideration.
  • It is not required to surrender all pig units. It is sufficient that the pig farmer surrenders at least 80% of the pig entitlement that was required for the number of pigs kept at the location in 2018. Pig farmers are also free to have more than the minimum of 80% of the pig rights canceled.

The consultation period is open until May 31. Everyone can then respond and the scheme can still be adjusted. The final regulations are expected to be published in June and opened for a period of 15 weeks on August 6. Applications can be submitted in the period from August 15 to September 30 this year.

POV: 'Flancing policy is necessary'
The Pig Farming Producers Organization (POV) stated in a response through Henk Boelrijk that provinces must bear the demolition costs and costs for asbestos removal of the stables. "Then the scheme will really become interesting for pig farmers." Boelrijk also states that there must be clarity about the tax-legal status of the home, which can no longer be classified as a company home after the demolition of the stables.

Furthermore, the POV states that it is pleased that the draft regulation is now public and that those involved have the opportunity to respond to it via internet consultation. "We believe that the fact that those involved are offered the opportunity to submit a view on the draft scheme is an important step in the process. Based on the responses, the scheme can still be improved and it can be tested whether there is sufficient interest in participation," said Boelrijk.

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