November 27, 2021

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Research: Dairy and pig farmers interested in supporting the tampon |  Financial issues

Research: Dairy and pig farmers interested in supporting the tampon | Financial issues

This is evidenced by research conducted by Wageningen University & Research (WUR) commissioned by the Ministry of Agriculture, Nature and Food Quality in interest in the so-called National Termination Scheme for Livestock Breeding Sites (LBV). Dairy cattle and pig farmers are particularly interested in a compensation of 65% of the replacement value of the stables in addition to full compensation for the value of production rights such as the share of milk.

Store value

The LBV voluntary termination scheme is expected to open in 2022 and is intended to reduce nitrogen precipitation in the Natura2000 areas. Farmers who benefit from this will be compensated for the adjusted replacement value of the barns and the value of the production rights. Researchers from Wageningen University were asked if such a scheme would be attractive to farms if 65% of the adjusted value of the stables was paid.

The scheme may be interesting for some pig farms, because their future prospects are simply unfavorable. With the previous anti-odor discontinuation scheme, many pig breeders did not see a future for their company due to lack of follow-up, profitability problems, investment difficulty and required regulations.

futuristic perspective

Failure to follow up is also an important reason to stop dairy farmers. However, WUR’s research confirms that it is difficult to estimate whether LBV is of interest to the dairy sector, because the difference between farms is large. Dairy farmers who own their land can always sell their land after the company ends. Tenant farmers do not have land to sell and the support system can be very attractive to them.

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WUR predicts that among poultry farmers there will be little incentive to stop subsidizing 65% of an adjusted home value. They have good market prospects and pig and dairy farmers often have successors to keep going.

Moreover, it is a purely qualitative study. It has not been investigated exactly how many farmers would like to participate in the scheme.