Government land grab? Dutch authorities offer to buy farms to fall in line with EU emission targets

29 Nov 2022 --- Dutch farmers are facing a new dilemma in the ongoing fight with government. They have been told to either make farms more sustainable or risk facing a compulsory buy-out situation – which would see the government directly buying livestock land to reduce “undesirable emissions” so that farms fall in line with EU targets.

The country is under pressure from the EU to meet its conservation and agriculture rules, and cut nitrogen emissions in half by 2030.

However, farming unions defend that plans to curtail emissions would have profound economic, social and cultural effects as the primary sector is a staple of the Netherlands economy.

In an unclear wording, the Dutch administration says that if their efforts do not succeed, “with pain in our hearts,” they will deploy, if necessary, “binding instruments.” Farmers are interpreting this as land expropriation. 

Authorities say they will give agricultural major polluting companies one year “to make the choice for the future of their country.” 

This means they must make their farms more sustainable through innovation, conversion and extensification, relocation or voluntary abandonment for compensation. 

The scheme for the land buy-out payments will come into effect in early 2023.

One year deadline
The ministry of nature and nitrogen explains that the buy-out payments will be well above market rates, giving an incentive to farmers to sell their land to the authorities. However the offer will be time-limited. 

“The offer made under this scheme is a one-off payment for a limited period. After the scheme closes, no financially attractive scheme will follow for the entrepreneur if the situation remains unchanged. This makes this an important choice moment for entrepreneurs who are considering ceasing livestock farming.”

The Dutch government reveals that the initial, short term, plans will affect between 2,000 and 3,000 farms. 

The Dutch government reveals that the initial, short term, plans will affect between 2,000 and 3,000 farms. In July, internal documents from the Ministry of Finance revealed plans to cut nitrogen use in half by 2030, which would mean the closure of 11,200 farms.

According to the Observatory of Economic Complexity, the Netherlands exported US$9.25 billion in meat products in 2020, with the top destinations being Germany, China, the UK, Italy and France. With less livestock farms, importers would have to look for meat products elsewhere.

Going too far
Farming union LTO affirms the government is overreaching its functions with these land buying plans. 

“The pre-emptive right for the government on land is very far-reaching and undesirable.” highlights LTO.

“Farmland must remain in the sector and is needed for those who stay” the organization underscores.

The organization also notes that entrepreneurs who want to innovate to reduce nitrogen emissions should be given more space, as permits for investment take too long (over two years in some cases). 

“I am incredibly concerned about the prospects for permanent farmers. That comes under further pressure with these letters. Of course, it is positive that a good voluntary stop scheme is being promised. But the stayers who are central to us will have many additional restrictions imposed,” says Sjaak van der Tak, LTO chairman. 

Agri-cooperatives and European farmers representatives Copa-Cogeca told FoodIngredientsFirst in September that any reduction in farming output in Europe will yield limited climate gains, as it would lead to environmental leakage. Where food imports, from more polluting countries, would increase and thus offset any gains achieved by reducing emissions in the EU.

By Marc Cervera