News item | 11-25-2022 | 4:15 pm
Agricultural agreement, €226.6 million and chain approach
Farmers need clarity about what agriculture will look like in 2040, so that they can fulfill the goals in the areas of nature, climate and water with peace of mind and confidence. The government, chain and consumer must help farmers to produce more sustainably. These are the starting points for the Agricultural Agreement that Minister Adema of Agriculture, Nature and Food Quality (LNV) wants to conclude in the first quarter of 2023 together with the agricultural organizations and also nature organisations, fellow governments and chain parties. For farmers who already want to become more sustainable, 226.6 million euros will be available over the next two years. This money is, for example, for switching to organic or nature-inclusive agriculture, independent advice or innovations on the farm.
Farmers are important players in our rural area. They supply healthy and high-quality products to both the Dutch and international markets on a daily basis. They must maintain that position, with a sustainable production method. In this way, farmers also contribute to the tasking in the areas of climate, nature restoration (nitrogen) and water quality. The government is convinced that our innovative Dutch farmers, together with the chains and our leading knowledge and educational institutions, hold the key to staying ahead in the world. They have been doing this for decades in terms of productivity, and it is the ambition that they will continue to do so in the coming decades, but with sustainable agricultural systems.
Minister Adema: “As a society, we are faced with the task of restoring nature, improving water quality and meeting the climate target. A task for all sectors and also for the agricultural sector. Everyone needs a contribution. In the Agricultural Agreement, I am making agreements with farmers about what agriculture will look like in the future, how we will fulfill the tasks and the support that is required for this. I expect a voluntary contribution from all parties around the farmer, such as feed suppliers, food processors, retailers and banks, to ensure that farmers are able to become more sustainable and write black figures.”
Agricultural agreement
The government has embraced Mr Remkes’ recommendations. An important recommendation is to arrive at a concrete plan for the future in good dialogue with the sector, preferably in the form of an Agricultural Agreement. The Minister of Agriculture, Nature and Food Quality will work with relevant parties to make choices about the future prospects for farmers in 2040 and the support required for this. The starting point is to tackle all agricultural tasks at once, so that farmers can make a plan for the future with clarity, certainty and peace of mind. National and area-oriented tasks must ultimately be translated in the NPLG to individual company level. This gives farmers the opportunity to steer towards goals themselves.
The Minister of Agriculture, Nature and Food Quality is responsible for concluding the agreement, in close coordination with the cabinet and inter-administrative partners. The minister will in any case invite agricultural organizations to the table, but also asks nature organisations, fellow governments and representatives of chain parties involved in the transition. Wouter de Jong will act as external administrative chairman/process supervisor. There will be a main table and several sub tables that work on the various parts of the agreement. There will also be a reflection table with independent (scientific) thinkers who can advise the main table. The further process, the rules of the game and the agenda are filled in by the minister together with the parties involved.
Earning power
The transition to sustainability will only succeed if the earning capacity of agricultural entrepreneurs is also in order. Farmers who are committed to achieving goals must be given butter to the fish. That is why the Minister of Agriculture, Nature and Food Quality is also working with the sector in the Agricultural Agreement to develop business models that match the development opportunities for farmers, such as (technical) innovation, conversion or relocation. There are various options for sustainable production, from high-tech production with low emissions for the European market, to extensive organic companies or companies that combine agricultural production with agricultural conservation of nature. The role of the chain is also considered in the business models. The minister expects a contribution from the chain to help farmers become more sustainable. The minister wants to make agreements with chain parties about this contribution in the Agricultural Agreement. The minister does not exclude the possibility that he will also introduce legal measures to encourage the chain parties, such as increasing the sustainable range of products on the shelf and transparency about sustainability.
Short term support
To enable farmers to prepare for the transition and the area-oriented approach now, 226.6 million euros has been reserved for 2023 and 2024. Within this, 101 million euros is available for independent advice to individual entrepreneurs (64 million euros). and sustainable field trials on farms (37 million euros). The Agricultural Agreement clarifies which additional resources from the Transition Fund are required for the transition of the agricultural sector.