Peak Load Approach: Financial Arrangements for Farmers Emitting over 2500 moles near Nature Reserves

To determine who is a peak loader, the cabinet has established a uniform threshold value. This was partly determined by an analysis by the RIVM. Farmers can participate in the peak load approach if their business causes a lot of emissions in nitrogen-sensitive nature areas. This is the case when a company within 25 kilometers of overloaded nitrogen-sensitive nature causes at least 2500 mol nitrogen deposition per year. The peak loaders are both agricultural and industrial companies.

To determine this, the actual (and therefore non-licensed) activities in 2021 are taken into account.

Website

On the website www.aanpakpiekbelasting.nl farmers can see which schemes they are eligible for. The AERIUS calculation tool anonymously calculates the nitrogen precipitation of a business location and whether you, as a farmer, meet the threshold value for peak load.

Entrepreneurs who fall under the approach are given a choice menu: they can extensify, innovate, switch, switch to a different type of agriculture (eg arable farming), move or stop. The focus is on voluntariness. Participation in the approach is not mandatory, but it is encouraged. ‘Companies that choose not to do anything now run a greater chance of having to implement the sustainability requirements at a later time – within the area process – which arise from both the nature/nitrogen tasking and the climate and water tasking’ , writes Christianne van der Wal in her letter to parliament.

Arrangements for stayers

Various schemes will become available for entrepreneurs who want to achieve the emission reduction applicable to the approach on the basis of (a combination of) innovation, extensification, conversion and relocation. These schemes will open at the end of 2023. “There will be a period when all schemes are open at the same time. This gives entrepreneurs time to make well-considered decisions,’ said the minister.

more extensive

Extensification is about lowering the stocking density per hectare. Within the framework of the National Strategic Plan within the framework of the Common Agricultural Policy (CAP), subsidies can be applied for by (joint ventures of) dairy farmers in and around peat meadow areas and Natura 2000 areas who want to extensify and also use more grazing. The aim is to open this scheme in the autumn of 2023, also for a broader group than just companies that fall under the peak load approach.

For switching to ‘sustainable business operations (e.g. organic or nature-inclusive)’, as the cabinet calls it, and/or to vegetable production, support is possible in the form of favorable loans (pilot Investment Fund for Sustainable Agriculture) and guarantees for working capital (Working Capital Scheme). Transition Programme) in the context of the Transition Program for Sustainable Agriculture.

A financial arrangement is still being worked out for relocation. This is still in preparation and will be published at the end of 2023. This scheme will still have to undergo a state aid assessment by the European Commission.

lbv-plus

For peak loaders who want to stop, the National Termination Scheme for Peak Load Livestock Farming Locations (Lbv-plus) has been set up. This regulation was published today and will open on Monday 3 July for dairy, pig, poultry (chickens and turkeys) and veal calf farmers who meet the threshold value and conditions set in the regulation. The scheme opens on 3 July 2023 and closes on 5 April 2024. ‘The Lbv-plus is the most financially attractive offer possible. There will be no more financially attractive scheme for the indicated target group.’ 975 million has been made available for this scheme.

Livestock farmers who participate in this scheme can, after permission from the government, start a new activity at another location. A condition for this is that these new activities contain a maximum of fifteen percent of the permitted nitrogen emissions.

Lbv

The National Termination Scheme for Livestock Farming Locations (Lbv) has been set up for farmers who are not peak taxers, but who do want to stop. ‘Livestock farms that are not covered by the peak load approach can also cause a considerable deposition of nitrogen on overburdened Natura 2000 areas. The government considers it important that a broader group of entrepreneurs also has the opportunity to voluntarily terminate their livestock farming activities. The Lbv is an important instrument for this.’

Unlike the Lbv-plus, no national threshold value applies to Lbv, but threshold values ​​apply per Natura 2000 area. Around each congested Natura 2000 area, the highest approximately 10 percent of the livestock farming locations (dairy cattle, pigs, poultry) in terms of deposition in the area in question can qualify for the Lbv. This involves a total of approximately 8,000 locations. This means that these schemes can have a major effect on local areas. The scheme will open simultaneously with the Lbv-plus with a budget of 500 million euros and will close on 1 December 2023.

Industry

The website and the schemes are only open to farmers. A separate approach has been set up for the industrial peak loaders, some 28 companies. This tailor-made approach is being developed by the Ministry of Infrastructure & Water Management and the Ministry of Economic Affairs. As an example of a measure, the government cites the tightening of permits.

Mandatory measures

The cabinet is fully committed to a voluntary approach and hopes that many of the companies that qualify will participate. In this way, it wants to prevent mandatory measures being necessary to reduce nitrogen emissions. This approach is now being worked out and will be sent to the House around the summer. The research into standards and pricing, among other things, will be reflected in this document.

View the website tackpiekbelasting.nl here