More farmers willing to be bought out under new nitrogen scheme than expected

1.5 billion euros were initially allocated for agricultural entrepreneur buyout schemes, but due to higher-than-expected interest, this amount now needs to be doubled, as reported by NRC on Thursday.

The voluntary buyout of farmers is an essential pillar of the Cabinet’s current nitrogen policy, which aims to cut nitrogen emissions by half by 2030.

Launched in June 2023, one scheme offer buyouts to about 3,000 farmers, predominantly in the dairy, pig, and poultry sectors, who contribute significantly to nitrogen emissions. Another scheme targets farmers near protected nature reserves. The "peak polluters scheme" compensates these farmers with 120 percent of their business value, while the general scheme offers up to 100 percent compensation.

The Rijksdienst voor Ondernemend Nederland (RVO) oversees these buyout applications. So far, 1,240 farmers have applied: 458 for the peak polluters scheme, 510 for the general scheme, with 272 applications still under review.

The deadline for the general scheme was earlier this month, whereas the peak polluters scheme is open until early April.

Almost 1.5 billion euros had been reserved for these two schemes. However, the outgoing Cabinet now fears that "the budgets may be oversubscribed," the Ministry of Agriculture, Nature and Food Quality stated. An additional 850 million euros is planned for the peak polluters, and the general scheme requires an extra 600 million euros.

If both the lower and upper houses of the Dutch parliament, along with the European Commission, approve the increase, this additional funding will augment next year's budget for the Ministry.

For the outgoing Cabinet, these buyout schemes are crucial to reducing nitrogen emissions. The objective is to use the space created by these buyouts to support farmers lacking nitrogen permits through no fault of their own and to enable construction projects.