The European Commission has approved a €615.7 million Dutch State aid scheme aiming to support the reduction of emissions in the dairy farming sector in the Netherlands.

According to the commission, the aim of the scheme is to support the voluntary reduction by dairy farmers of their herd for a period of three years.

Under the scheme, farmers in the Netherlands who kept dairy cows and calves for the production of milk last year will be able to apply for aid.

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

It is understood that the scheme is due to run for five years.

Dairy

The commission determined that "by contributing to the structural reduction of both greenhouse gases (GHGs) and ammonia emissions, the scheme benefits climate change mitigation and strengthens environmental protection".

"Additionally, the scheme can stimulate the transition to less intensive business models," it said.

The commission assessed the scheme under EU State aid rules, including the 2023 guidelines for State aid in the agricultural and forestry sectors and in rural areas.

The commission found that "the scheme is necessary and appropriate to strengthen environmental protection, including biodiversity and climate action, and to contribute to achieving the environmental and climate-related objectives of the EU".

In granting approval, the commission also found that the scheme is "proportionate as it is limited to the minimum necessary and will have a limited impact on competition and trade between member states".

Netherlands

The EU Commission previously approved a €700 million Dutch scheme to compensate farmers for voluntarily closing livestock farming sites in certain areas of the Netherlands.

It is aimed at improving the quality of the environment and to promote a more sustainable and environmentally friendly production in the livestock sector.

The scheme will apply to priority areas designated by the Dutch provinces, which include peatlands, sandy soils, stream valleys, as well as areas in and next to Natura 2000 areas.

The scheme will run until October 1, 2029 and will be open to small and medium-sized livestock farmers in the Netherlands that voluntarily close their livestock farming sites in an eligible area.

The scheme complements two existing Dutch schemes (LBV and LBV-plus) approved by the European Commission in May 2023 to reduce N deposition on nature conservation areas. Livestock farmers can only participate in one of the three schemes.