Landmark agriculture deal at risk of collapse after LTO leaves talks

Agriculture and horticulture organization LTO said it could no longer support the Dutch Cabinet’s agricultural agreement and pulled out of talks with the government on Tuesday evening. The involved Ministers called the LTO’s departure disappointing but added that the agriculture sector’s climate goals would remain intact with or without an agreement.

"We would have liked to see it succeed. However, we have to conclude in a somber and business-like manner that insufficient steps have been taken to offer farmers and market gardeners perspective about actions and income security," said the LTO, a key player which represents 35,000 entrepreneurs in the agricultural sector.

On Tuesday, yet another round of talks was held, this time including Minister of Agriculture Piet Adema, Minister Christianne van der Wal for nitrogen emissions policies, Hugo de Jonge, the minister currently in charge of housing and spatial planning, and the LTO. The LTO said that in the course of the process, more and more good intentions emerged, "but a farmer cannot live on intentions,” according to an extensive statement that appeared on the organization’s website shortly before the key players walked out of the meeting.

LTO said that a robust revenue model for Dutch farmers and market gardeners was lacking. "In order to achieve goals, farmers and horticulturists must take measures that lead to higher cost prices for our food. But on the store shelves, these products compete with foreign products that do not have to meet these requirements - and are therefore cheaper," creating a new problem and increased competition. Effectively, there was only a commitment to discuss this at the European level, which LTO does not consider sufficient.

Also, according to LTO, no agreements could be made about the future of those people and businesses who were able to skirt permitting rules by applying for expansions and projects under the Nitrogen Approach Program (PAS), in which they were allowed to provide their own nitrogen emissions calculations. The Council of State ruled that this group would be in violation of the law if they moved forward with projects, even though they were approved by the government under PAS rules.

Additionally, an agreement could not be reached about whether the national nitrogen emissions targets were set for 2030, as the Cabinet wants, or if it can be delayed to 2035, as the agriculture sector wants. LTO Chair Sjaak van der Tak said that they were disappointed that it did not work out. He called it a "difficult decision" to walk away because it was all about confidence for the farmers. "In recent months, despite major proposals we have made, that confidence has not been brought any nearer."

Although Van der Tak acknowledged it was LTO that broke off talks, he also said he is grateful for the process that the Cabinet started. "For ten years, farmers have not been spoken to as they have been spoken to now. We want to work together and find solutions; that is in our nature. We very much appreciated the efforts of Minister Adema and the Cabinet."

Ministers’ response

Minister Adema called LTO Nederland’s departure from the negotiations “an extremely disappointing decision.” What it means for the agriculture agreement will become clear later this week. According to the Minister, the deal was “almost ready.”

Adema did not say on which points the talks with the LTO collapsed. “LTO did not dare to make the leap,” was all the Minister would say. Adema has a “bad feeling” about it and speaks of a “great missed opportunity.” Adema said they were very close to the end, speaking of “the last dots on the i” and a “95 percent version of the text. He is “convinced that the agreement could offer farmers prospects.”

Climate Minister Rob Jetten also finds it “disappointing” that LTO has left the discussions of the agricultural agreement and that the chance of such an agreement has therefore shrunk considerably. But the climate target for the farming sector - 5 megatons less CO2 - remains in place, the Minister emphasized. Without an agreement, the Cabinet may have to intervene unilaterally, Jetten said.

The two agriculture Ministers (Adema and Van der Wal) are responsible for the CO2 reduction. “If they don’t achieve that through an agricultural agreement, I will talk to them about how we can achieve those goals via other routes. Then additional measures will be taken by the Cabinet - if there is not a second chance for that agricultural agreement.”

Farmers’ response

“A very wise decision,” is how Mark van den Voever, the leader of the farmers’ action group Farmers Defense Forde (FDF), described LTO’s decision to pull the plug on the agricultural agreement talks. Van der Oever said he and FDF members have exerted “gigantic pressure” on LTO to move in this direction. “The agricultural agreement should have provided perspective and restoration of trust but was instead full of a lot of extra regulations for farmers. Signing that would have been the downfall of the sector.”

Now that the LTO has withdrawn, Van der Oever expects Minister Adema to resign. If that does not happen and the Cabinet pushes climate measures on the farmers, he can guarantee “that they will encounter the FDF in a way that they have not seen before.”

The LTO’s departure has made the agricultural agreement “unsustainable,” said Roy Meijer, chairman of the young farmers’ association NAJK. “We are very sorry that LTO has stepped out, but it is up to each party to make a choice in this,” Meijer said. “Now that LTO has also left, this means for us that the process of the Agricultural Agreement has become unsustainable.”

The NAJK chairman said he took part in the talks “because it is about our future, the future of young farmers and market gardeners. That future remains uncertain.” Despite the collapse of the agricultural agreement, his organization will “continue to work for a future of young farmers and young horticulturists.”

Talks will continue

All the remaining parties at the negotiation table will meet again on Wednesday to discuss the agricultural agreement. The talks will include the departure of the LTO and what it means for the agreement.