There are no easy solutions

The biggest challenges for the agricultural sector in the Netherlands: nitrogen and climate There are no easy solutions

The climate objectives are having a major impact on Dutch agriculture and livestock farming. Is there a way to reach all the planned objectives and keep offering the agricultural sector perspective for the future? The new cabinet is facing a challenge.

In the run-up to the parliamentary elections in March, the Netherlands Environmental Assessment Agency (Planbureau voor de Leefomgeving - abbr. PBL) investigated a series of possible measures with a view to future agricultural and food policy. The Institute for Strategic Policy Analyses came to a clear conclusion. There are no measures that score well on all the goals for the environment, economy and social aspects that, at the same time, are easy to achieve.

This basically means there isn't any ‘low-hanging fruit’ to be harvested in terms of promising agricultural and food policy, according to the PBL. The current challenges – climate change, the nitrogen problem and the coronavirus crisis – are colossal and complex. An evident need exists to reduce greenhouse gas emissions, although this should not be at the expense of food production for the still growing world population.

The PBL assessed 27 possible measures for future policy on effectiveness, feasibility and legal legitimacy, such as handling raw materials more efficiently. One possible scenario is to stimulate replacing artificial fertilizers by high-quality manure processing products. In this context, the PBL touched on the option of introducing a levy on artificial fertilizers. It also pointed out the disadvantages this poses regarding the competitiveness of Dutch agriculture if this is not a Europe-wide levy.

Uncertainty The Dutch Agriculture and Horticulture Organization (LTO Nederland) acknowledges the challenges the industry is facing. “It's fantastic to see so much entrepreneurship in our sector, but these are difficult times for our farmers and market gardeners,” said chairman Sjaak van der Tak when he took office at the start of this year. “The margins are thin, the regulatory burden is high and the political-social debate is getting fiercer. There is great uncertainty in various policies, from nitrogen to crop protection. And this brings with it uncertainty about the future, about the space we have to do business, for the company, for the next generation. That makes it all the more important to work together on financially healthy companies, on responsible entrepreneurship and on public support.”

“It's time to roll up our sleeves and get to work”

In the run-up to the elections, the entrepreneurs' organisation stressed the importance of a better and more robust earning capacity of farmers and horticulturists. In short: a fair price for the farmer's product, with an additional payment for efforts made in the area of landscape, animals and nature. The Dutch Agriculture and Horticulture Organization believes the proceeds from legislation promoting sustainability (such as the above example of a levy on artificial fertilizer) should flow back into the agricultural sector. The organization does not want to be confronted with even more visions and policy documents. The focus should be on a comprehensive and coherent policy, instead of a change of direction every four years. “The message is short but very clear: there is already enough information available, now is the time to roll up our sleeves and get to work and connect,” says LTO Nederland.

Unavoidable But not everyone has the same view on this topic. There is another school of thought saying that extra regulations are unavoidable. “Politicians should use legislation to guide the agricultural sector in the right direction, otherwise we will never reach the climate targets,” asserts Jonathan Verschuuren in the Tilburg University Magazine. The professor at Tilburg University specializes in agricultural and climate law and emphasizes the need for a smaller livestock population and a reduction in intensive agriculture. He sees this as the only way to reduce carbon, methane and nitrous oxide emissions. It is imperative that this is done on a global scale. One option he believes will work is regulating emission rights at European level and compensating farmers who switch to more extensive agriculture and livestock farming.

The Dutch Agriculture and Horticulture Organization also agrees that Europewide measures are needed and that all countries should work within the same frameworks. “The requirements in the Netherlands are among the strictest in Europe, and therefore in the world,” according to LTO vice-chairman Wim Bens. “We want to retain our leading trade position and continuously improve the quality of our production. But to do so, it is absolutely vital to be on a competitive playing field.” He pointed out the need for a proactive stance from the government through investments to facilitate and reward innovations. “Encourage and reward farmers and horticulturists, either with a fair price or some other kind of compensation for their products and the efforts they undertake for societal demands on climate, biodiversity and nature.”

Yearning Bens used the example of soil management and the need to be less dependent on external factors, such as artificial fertilizers and plant protection products. “By making optimal use of the possibilities that the soil offers, farmers and horticulturists can help the agricultural system to be more robust with regard to weather conditions, plagues and diseases. The current incoherent policy is insufficiently geared to this.” His message to politicians is clear: is what the entire agricultural sector is yearning for a policy that is coherent and conclusive. “This would allow various social policy issues to be efficiently combined and offer farmers a clear perspective on how to act. Regulating everything down to the last detail isn't the solution.”

“Regulating everything down to the last detail isn't the solution”