EU approves $1.61 bln for Dutch gov't to buy out farmers

The money will be used to compensate farmers who voluntarily sell
calendar icon 2 May 2023
clock icon 1 minute read

The European Commision on Tuesday said it had approved two Dutch plans worth a combined 1.47 billion euros ($1.61 billion) to buy out livestock farmers to reduce nitrogen pollution, saying they are permissible under state aid rules, reported Reuters.

The Dutch need to reduce excess nitrogen levels, caused in part by decades of intensive farming, a problem that has led to courts blocking important construction projects until the issue is resolved.

Discontent over government plans to address the problem until now date led to a major defeat for Prime Minister Mark Rutte's governing coalition in regional elections in March.

Farm buyouts are seen as an important step toward a comprehensive plan to address the issue.

In the schemes approved by the European Union's executive body on Tuesday, the Netherlands reserved the money to compensate farmers who voluntarily close farms located near nature reserves.

The plans will have "positive effects that outweigh any potential distortion of competition and trade in the EU," the Commission said in a statement approving the aid.

($1 = 0.9131 euros)

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