The European Commission has approved, under EU State aid rules, a €700 million Dutch scheme to compensate farmers for voluntarily closing livestock farming sites in certain areas of the Netherlands.
It is aimed at improving the quality of the environment and to promote a more sustainable and environmentally friendly production in the livestock sector.
The scheme will apply to priority areas designated by the Dutch provinces, which include peatlands, sandy soils, stream valleys, as well as areas in and next to Natura 2000 areas.
Dutch scheme for livestock farms
The scheme will run until October 1, 2029 and will be open to small and medium-sized livestock farmers in the Netherlands that voluntarily close their livestock farming sites in an eligible area.
To be eligible under the scheme, the annual nitrogen (N) emissions of the site must reach certain thresholds to ensure that their closure has a sufficient positive environmental impact.
Under the scheme, the aid will take the form of direct grants and subsidised advisory services.
It will cover up to 100% of the eligible costs, including the compensation for the loss of production rights and capacity, the costs of dismantling and disposing of the production capacity, and other costs directly linked to the site closure.
The scheme complements two existing Dutch schemes (LBV and LBV-plus) approved by the European Commission in May 2023 to reduce N deposition on nature conservation areas. Livestock farmers can only participate in one of the three schemes.
The commission has assessed the scheme under EU State aid rules and found that the scheme is “necessary and appropriate” to achieve the objective pursued – the sustainable and environmentally friendly development of livestock farming, while supporting the objectives of the European Green Deal.
The commission concluded that the scheme is proportionate, as it is limited to the minimum necessary, and will have a limited impact on competition and trade in the EU.
On this basis, the Commission approved the Dutch scheme under EU State aid rules.
This latest scheme follows the approval of a scheme last month by the European Commission for €105 million to compensate Dutch livestock farmers for relocating their enterprises away from nature conservation areas in the Netherlands.
