European Commission Approves €700 Million To Support Animal Farm Closures

The European Commission has approved a EUR €700 million (USD $796 million) Dutch State aid scheme to compensate animal farmers who voluntarily close their businesses.

The scheme will apply to priority areas designated by Dutch provinces, including environmentally valuable ecosystems such as peatland, sandy soiled locations, stream valleys, and both Natura 2000 Special Areas of Conservation and Special Protection Areas.

Small and medium-sized livestock farmers who voluntarily close their operations within one of the recognized areas can apply for direct grants and subsidized advisory services. Eligible farms must also exceed certain nitrogen emissions thresholds to be eligible, to maximize the scheme’s overall impact by specifically targeting high-emitters.

The scheme will run until October 1, 2029, and covers up to 100 percent of eligible costs to farmers, including compensation for loss of production rights and capacity, dismantling operations and disposal, and any other costs related to voluntary site closure.

The Netherlands now has three schemes to facilitate high-emitting farm closures

Photo shows a group of pigs within a straw-floored pen — Adobe Stock Pig farming produces significant quantities of nitrogen emissions

The European Commission – the European Union’s governing body – and the Dutch government aim to promote more “sustainable and environmentally-friendly” animal agriculture as well as increased protection for biodiverse and ecologically significant land.

The new scheme also complements two existing Netherlands-focused strategies approved by the European Commission in 2023. The €500 million LBV and €975 million LBV Plus schemes also take aim at high-emitting farms in “overburdened” Natura 2000 areas.

“The €1.47 billion Dutch schemes we approved today will facilitate the voluntary closure of livestock farming sites with substantive nitrogen deposition on nature conservation areas,” said Margrethe Vestager, Executive Vice-President in charge of competition policy, in a statement at the time. “The schemes will improve the environment conditions in those areas and will promote a more sustainable and environmentally friendly production in the livestock sector.”

Eligible farmers can only participate in one of the three compensatory schemes. The vast majority of European farming subsidies continue to support animal agriculture.