The European Commission has approved a €700m Dutch scheme to compensate farmers for voluntarily closing livestock farms in certain areas of the Netherlands.

The scheme will run until October 2029 and will be open to small- and medium-sized livestock farms based in priority areas designated by the Dutch provinces, which include peatlands, sandy soils, stream valleys and sites in and next to Natura 2000 areas.

It is planned to improve the quality of the environment and promote a more sustainable and environmentally friendly production in the livestock sector.

The Commission found that the scheme complied with EU state aid rules, describing it as “necessary and appropriate”, while it supported the objectives of the European Green Deal.

Dutch farm eligibility

To be eligible under the scheme, the annual nitrogen emissions of the site must reach certain thresholds to ensure that its closure has a sufficient positive environmental impact.

The aid will take the form of direct grants and subsidised advisory services covering up to 100% of the eligible costs.

These can include the compensation for the loss of production rights and capacity, the costs of dismantling and disposing, plus 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.