The European Commission has approved a proposal to increase the funding for two exit schemes aimed at Dutch livestock farmers.
The main objective of the LBV and LBV plus schemes, which were given the green light in May 2023, is to “reducing nitrogen deposition in overburdened Natura 2000 protected areas”.
Under the measures livestock farmers are compensated for the voluntary definitive closure of cattle breeding sites.
The schemes are open to small and medium-sized livestock farmers in the Netherlands who permanently close farms on sites where nitrogen deposition load exceeds certain minimum levels.
Farmers who avail of the schemes, which are due to run until February 2028, must also agree that they will not start a similar breeding programme anywhere else in the Netherlands or in the European Union (EU).
Dutch farmers
The Netherlands notified to the EU Commission amendments to the schemes, consisting mainly of a budget increase of €602 million for LBV, up from €500 million to €1.10 billion.
Under this scheme the aid takes the form of direct grants to compensate up to 100% of the losses incurred by farmers who decide to close their dairy cattle, pig and poultry breeding sites.
The Dutch government is also proposing to add €845 million to LVB plus, increasing the funding from € 975 million to €1.82 billion.
This scheme is open to so-called “peak-load emitting breeding sites” who emit a high level of nitrogen per year, fixed as a minimum level.
Similar to the LBV scheme, it is open to farmers breeding dairy cattle, pigs and poultry, along with those breeding veal calves.
The commission said that this will allow more farmers eligible under to schemes to be compensated, and the closure of more breeding sites.
Following an assessment under EU State aid rules, the commission found that the amended schemes “remain necessary and appropriate to achieve the objective pursued, namely the sustainable and environmentally friendly development of livestock farming, while also supporting the objectives of the European Green Deal”.
It added that the positive effects of the schemes “outweigh any potential negative effects on competition and trade in the EU”.