Brussels, 23 August 2024
The European Commission has approved, under EU State aid rules, a €50 million Dutch scheme to compensate livestock farmers for voluntarily closing livestock husbandry sites in nature conservation areas in the Netherlands. The objective of the scheme is to reduce nitrogen deposition caused by farming activities in overburdened Natura 2000 sites, in the light of the conservation objectives and requirements of the Birds and Habitats Directives.
The scheme, which will have a duration of five years, will be open to small and medium-sized livestock farmers in the Netherlands that voluntarily and irrevocably close their livestock husbandry sites, where these sites’ nitrogen deposition load exceeds certain minimum levels. Under the scheme, the aid will take the form of direct grants and will cover up to 120% of the eligible costs, including the compensation for the loss of production capacity and for the costs of dismantling and disposing of the production capacity.
The scheme complements three existing Dutch closure schemes (LBV, LBV-plus and MGB) approved by the Commission in May 2023 and in August 2024 to reduce nitrogen depositions on nature conservation areas. It concerns livestock husbandry sites with specific categories of animals and nitrate deposition ceilings which are not previously covered by the existing schemes. Livestock farmers can only participate in one of those closure schemes.
The Commission assessed this scheme under EU State aid rules, in particular under Art.107(3)(c) of the Treaty on the Functioning of the EU, which allows Member States to support the development of certain economic activities under certain conditions, and the 2022 Guidelines for State aid in the agricultural and forestry sectors and in rural areas. The Commission found that the scheme is 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. Furthermore, 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.
The non-confidential version of the decision will be made available under the case number SA.114713 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Source – EU Commission