Remediation scheme for pigs largely unused

More than 500 pig farmers registered for the pig farming restructuring scheme and approximately 400 of them received a decision. According to specialist Frank Steenbreker of accounting firm ABAB, not much more than half of these 400 companies will actually participate in the scheme. However, they cannot go back on their decision now that pig prices have fallen so dramatically.

Steenbreker: "The supporting policy is insufficient. The compensation for older stables that are still functional because they have recently been renovated is too low. There are also entrepreneurs who do not participate because they are not allowed to keep pigs at another location. In East The much lower compensation for pig rights in the Netherlands, compared to the South of the Netherlands, also plays a role."

Possible major tax consequences
Some companies that were registered and eligible to participate in the restructuring scheme were ultimately sold to other pig farmers. These are mainly larger fattening pig farms that are favorably positioned in the market. According to Steenbreker, it is very important that the financial obligations can be met. He also points out the potentially major tax consequences of the discontinuation profit to be paid.

Because not much more than half of the 400 companies with a decision will actually participate, €150-200 million will probably remain unused. A total of €450 million has been made available for the pig farming restructuring scheme. Steenbreker estimates that on average €1 - 1,2 million is paid out per company, although the variation between companies is large.

Political questions
Various parliamentary questions have been asked to Minister Schouten about participation in the restructuring scheme. The House of Representatives wants to know from the minister how much budget remains unused and how much effect the scheme has on nitrogen emissions and deposition. Steenbreker cannot estimate this. The number of sows and fattening pigs that disappear from the market has been estimated by the minister at 70.000 to 75.000 sows and 330.000 to 335.000 fattening pigs. That is 7 to 8% of the total pig herd in the Netherlands. The total nitrogen emissions involved depend on the modernity of the stables. Moreover, it is not the emissions, but the amount of nitrogen that deposits less in vulnerable nature that determines the nitrogen problem. This nitrogen deposition, together with the nitrogen emissions, is determined by the location of the companies in relation to vulnerable nature reserves.

Other purchasing arrangements
The pig farming restructuring scheme is intended to reduce odor nuisance. In the province of North Brabant, the voluntary purchase of peak loaders will start in January 2021. A total of €53 million is available for this in the province of North Brabant over 3 years. It is expected that 10 livestock farms will be purchased in the first round. It is not yet known when the scheme for peak loaders will start in the other provinces. In addition to this voluntary purchase scheme, a national termination scheme for livestock farms will also start in 2021, regardless of nitrogen emissions and the location of the farms.