Brussels, 14 August 2024
The European Commission has approved, under EU State aid rules, a €700 million Dutch scheme to compensate farmers for voluntarily closing livestock farming sites in certain areas of the Netherlands to improve the quality of the environment and promote a more sustainable and environmentally friendly production in the livestock sector.
The scheme will apply to priority areas designated by the Dutch provinces, which include peatlands, sandy soils, stream valleys, as well as areas in and next to Natura 2000-areas.
The scheme will run until 1 October 2029. It will be open to small and medium-sized livestock farmers in the Netherlands that voluntarily close their livestock farming sites in an eligible area. To be eligible under the scheme, the annual nitrogen emissions of the site must reach certain thresholds to ensure that their closure has a sufficient positive environmental impact. Under the scheme, the aid will take the form of direct grants and subsidised advisory services. It will cover up to 100% of the eligible costs, including the compensation for the loss of production rights and capacity, the costs of dismantling and disposing of the production capacity, and other costs directly linked to the site closure.
The scheme complements two existing Dutch schemes (LBV and LBV-plus) approved by the Commission in May 2023 to reduce nitrogen deposition on nature conservation areas. Livestock farmers can only participate in one of the three schemes.
The Commission assessed the scheme under EU State aid rules, in particular under Article 107(3)(c) of the Treaty on the Functioning of the European Union, 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 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.114339 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.