Financial transition allowance for phasing out derogation | News item

News item | 05-09-2022 | 12:57

Dutch farmers can still apply for a full derogation for spreading manure in 2022. In the following years, a gradual phase-out will follow up to and including 2025. From 2026, Dutch farmers will no longer receive an exception to apply more manure than 170 kg per hectare, the so-called derogation. This is stated in the draft derogation decision that the European Commission has shared with the Member States. The consequences of phasing out the derogation are major for dairy farmers. That is why the cabinet is making 130 million euros available for dairy farmers who make use of the derogation. They can apply for a financial allowance from January 2023.

Granting derogations for Dutch farmers has never been self-evident – ​​even with the last grant (for the years 2020 and 2021), the European Commission (EC) was reluctant to grant a derogation. When granting the exception, the EC takes into account requirements for environmental status in general and water quality in particular. The Netherlands does not meet all the requirements. The EC is also looking at the possible causes of environmental pressure.

Minister Staghouwer of Agriculture, Nature and Food Quality: “The intensive and months-long negotiations with the European Commission about granting a derogation were not easy. Ultimately, in the coming years, Dutch farmers will have to reduce the size of the derogation for spreading manure to the user standard of 170 kg per hectare. I understand that this is a hard message now that the sector is on the eve of the major agricultural transition. That is why the cabinet is temporarily providing financial assistance to the farmers.”

Content of the draft decision

In addition to the phasing out path for the size of the derogation, there are also other robust measures from the draft decision that will have consequences for the agricultural sector. For example, the Netherlands will have to designate so-called ‘contaminated areas’ in the coming period, where the derogation will be phased out more quickly and additional requirements will be imposed, and the fertilizer production ceilings will be adjusted. LNV will further elaborate the additional conditions, if possible with the sector, in the coming period. The full derogation decision will be shared after a vote in the Nitrate Committee on 15 September.

Transition arrangement

The government is aware that the consequences of phasing out the derogation for the dairy farmers concerned and for the entire agricultural sector will be very significant. Due to the abolition of the derogation from 2026, the agricultural sector must quickly make far-reaching adjustments to their business operations, such as removing a larger part of their manure. In addition, the sector also faces challenges in the field of reducing nitrogen emissions, improving the climate, water quality and enhancing nature. The government wants farmers to be able to embark on a major agricultural transition with strength and is committed to preserving the amount of grassland in the Netherlands. That is why the government is providing financial compensation to dairy farmers who make use of the derogation in the extra costs for the disposal of manure. The so-called transition scheme stimulates the conservation of grassland on dairy farms. One of the conditions for obtaining a derogation is that farmers keep 80% grassland on their farm. Grassland is important to prevent leaching of nitrogen and phosphate into our water. That is why it is important that the farms maintain grassland. What the transition scheme of a total of 130 million euros for three years will look like will be further elaborated in the coming period. The government aims to maintain grassland after 2025 because of the relatively favorable effects on water quality and nature.

Continuation

The procedure for granting a derogation has not yet been completed. The Nitrate Committee will meet on 15 September, where the Member States will vote on the draft derogation decision. The Minister of LNV will inform the House of Representatives about the outcome of this vote.

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