The Dutch agricultural sector is once again facing substantial changes as the government moves forward with plans to reduce the number of livestock, particularly pigs. This policy is rooted in long-standing issues related to nitrogen emissions, manure management, and compliance with European Union (EU) environmental standards. Despite the hope that the recent inclusion of the Farmer-Citizen Movement (BBB) in the coalition would ease agricultural restrictions, the new government is committed to reducing livestock numbers, albeit with a more moderate approach than previous proposals.

The Nitrogen Problem: A Long-Standing Issue

The Netherlands has grappled with excessive nitrogen emissions for many years. The country has one of the highest nitrogen balances in Europe, largely due to its intensive farming practices, which produce significant amounts of manure. Manure releases ammonia into the atmosphere, contributing to the nitrogen crisis. This excess nitrogen is harmful to the environment, particularly to water quality and vulnerable nature reserves​.

To address this, the Dutch government had negotiated an exception, known as the “derogation,” allowing farmers to apply more nitrogen per hectare than other EU countries. However, this derogation will expire in 2026, leaving the government no choice but to introduce measures to reduce manure production and improve water quality​.

New Livestock Reduction Measures

Under the new policies, livestock numbers will be reduced by limiting the issuance of farm permits when ownership changes hands. For pig farms, the new permits will only allow 75% of the original livestock capacity. Similarly, cattle and poultry farms will face reductions of 70% and 85%, respectively. This approach is seen as a more gradual reduction compared to earlier, more aggressive proposals. However, it still significantly impacts farmers, particularly those who were hoping for more lenient regulations after the last elections​.

Additionally, the government is offering voluntary buy-out schemes, especially for farmers located near sensitive nature areas, known as "Natura 2000" zones, where nitrogen emissions are particularly detrimental. These schemes provide compensation to farmers who agree to close their operations or transition to more sustainable practices. For pig farmers, there is a specific "Pig Production Cessation Scheme" that provides financial support for those willing to stop farming​.

Protests and Pushback

The reduction in livestock has sparked significant protests from Dutch farmers, who argue that these measures threaten their way of life. Farmer advocacy groups, such as the Farmers Defence Force (FDF), have been vocal opponents of the nitrogen policies. Farmers have held widespread protests, blockading roads, dumping manure, and even targeting politicians' homes to express their discontent. They argue that the government is exaggerating the nitrogen crisis and that other factors, such as industrial emissions, are being overlooked​.

In response, the government has sought to engage with farmers through discussions and negotiations. Agricultural organizations like LTO Nederland have advocated for more locally driven, flexible solutions to reduce nitrogen emissions rather than top-down mandates. However, consensus remains elusive, with many farmers feeling that their voices are not being adequately heard​.

A Balancing Act: Agriculture, Environment, and Economy

The Dutch government is navigating a complex challenge. While agriculture is a vital part of the Dutch economy, contributing to its status as one of the world’s largest food exporters, the environmental costs are becoming increasingly untenable. Nitrogen emissions are not only damaging to the environment but also pose legal risks. The government faces pressure from environmental groups and the courts to meet nitrogen reduction targets set in the 2021 Nitrogen Reduction and Nature Improvement Act​.

The Act mandates that nitrogen levels in 40% of vulnerable nature reserves must fall below harmful levels by 2025. However, current estimates suggest that the country will not meet this goal, leaving the government vulnerable to lawsuits from environmental organizations like Greenpeace. As a result, there may be additional court-imposed measures if voluntary schemes fail to deliver significant nitrogen reductions​.

Looking Ahead: What’s Next for Dutch Farmers?

The future of Dutch agriculture remains uncertain. With EU regulations tightening, and internal pressure from both environmental advocates and farmers, the Dutch government must find a balance between reducing emissions and sustaining the agricultural economy. The policies on livestock reduction are just one part of a broader strategy that includes improving soil quality, restoring natural ecosystems, and meeting climate targets​.

The outcome of these policies will have far-reaching consequences, not just for Dutch farmers, but for global agricultural markets. The Netherlands is a major player in global food production, and any significant changes to its farming practices could impact food prices and supply chains worldwide.

While the new measures offer some concessions to farmers, such as reduced derogation-free zones and the promise of compensation, the road ahead is likely to remain fraught with challenges as the country works to meet its environmental obligations​.

Whether these policies will be enough to satisfy both Brussels and the Dutch agricultural community remains to be seen.

Source:

• https://www.pigprogress.net/market-trends-analysis-the-industrymarkets/netherlands-reduction-of-pig-numbers-remains-key/
• https://www.energymonitor.ai/policy/the-dutch-nitrogen-crisis-shows-what-happens-when-policymakers-fail-to-step-up/
• https://nltimes.nl/2024/01/23/netherlands-will-miss-important-nitrogen-target-next-year
• https://www.government.nl/topics/nature-and-biodiversity/the-nitrogen-strategy-and-the-transformation-of-the-rural-areas
• https://www.kvk.nl/en/sustainability/nitrogen-emissions-in-the-netherlands-what-do-we-know/