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EU approves €105m subsidy for Dutch livestock farmers to cut nitrogen pollution

Dutch farmers protesting against the government’s plans to reduce emissions of nitrogen oxide and ammonia gather for a demonstration at Stroe, Netherlands, Wednesday, June 22
Dutch farmers protesting against the government’s plans to reduce emissions of nitrogen oxide and ammonia gather for a demonstration at Stroe, Netherlands, Wednesday, June 22 Copyright Aleksandar Furtula/AP
Copyright Aleksandar Furtula/AP
By Robert Hodgson
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Farmers who relocate away from Natura 2000 sites can be offered public money, Brussels said, after green measures drew a howl of protest.

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The EU has approved a €105m subsidy scheme to encourage Dutch livestock farmers to move away from nature protection areas in a bid to tackle dangerous nitrogen emissions.

Since 2019, the agricultural superpower has seen widespread farmers' protests against the government's efforts to tackle nitrogen pollution – including ammonia from slurry, manure and chemical fertilisers.

That culminated with the Farmer-Citizen Movement (BBB) becoming part of a new right-wing coalition that took office earlier this month.

The multi-million-euro scheme approved today compensates farmers who voluntarily move away from Natura 2000 sites damaged by nitrogen deposition, which can degrade the environment and contravene the Habitats Directive, an existing EU conservation law.

Owners of small and medium-sized livestock farms can claim a direct grant for as much as 100% of the cost of relocating breeding operations, including to dismantle and reassemble farm buildings and infrastructure, and restore abandoned sites – even if they move to another part of the EU.

Under EU single market law, national subsidies can constitute unlawful state aid, and Brussels officials had to check whether the scheme achieved legitimate policy goals without unduly distorting markets.

The Commission said the Dutch scheme, which will run until 2029, was “necessary and appropriate to achieve the objective pursued, namely the sustainable and environmentally friendly development of livestock farming” while supporting the EU's Green Deal against climate change.

The decision comes some 14 months after EU competition officials approved €1.47 billion in state aid to refund up to 120% of the costs incurred by farmers who decide to close livestock breeding operations rather than comply with stricter nitrogen limits.

Despite having the second-highest population density in the EU after Malta, the Netherlands is the world’s second largest agricultural exporter, with exports totalling nearly €124bn last year, according to official statistics.

The new government, including BBB, has promised to ease restrictions following a wave of protest against the nitrate reduction policy of the former government, led by liberal Prime Minister Mark Rutte.

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