NETHERLANDS – The European Commission has approved a US$779M scheme proposed by the Netherlands to compensate farmers who voluntarily shut down their livestock operations.
This initiative, deemed necessary and suitable under state aid regulations, aims to advance the country’s sustainable agriculture objectives.
The Dutch government contends that reducing the number of livestock farms is crucial for achieving environmental sustainability goals.
The scheme, which is set to run until October 1, 2029, targets small and medium-sized livestock farms in specific priority regions identified by Dutch provinces.
These regions include peatlands, sandy soils, and stream valleys.
To qualify for the program, farmers must ensure that their sites’ annual nitrogen emissions meet predetermined thresholds, guaranteeing that the closure will have a significant positive environmental impact.
The financial aid will be provided through direct grants and subsidized advisory services, covering up to 100% of eligible expenses.
This includes compensation for lost production rights and capacity, the costs associated with dismantling and disposing of production facilities, and other site closure-related expenses.
The European Commission confirmed that the scheme aligns with the goals of the European Green Deal, stating that it is necessary for the sustainable development of livestock farming and supports the broader environmental objectives.
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