European Commission Approves €700 Million Dutch Farm Closure Aid

The European Commission has approved a €700 million Dutch state aid scheme to compensate small and medium-sized livestock farmers for voluntarily closing farms in designated environmentally sensitive areas, including peatlands and Natura 2000 sites. The scheme, which runs until October 1, 2029, aims to promote sustainable livestock production and enhance environmental quality by targeting farms with high nitrogen emissions. Eligible farmers can receive grants covering up to 100% of costs associated with site closures, including loss of production rights and dismantling expenses. This initiative complements two previously approved schemes aimed at reducing nitrogen pollution in nature conservation areas. The Commission deemed the scheme necessary and appropriate under EU state aid rules, supporting the objectives of the European Green Deal. Farms may only participate in one of the three schemes established to facilitate such closures.