On February 5, 2025, the roundtable discussion Broad Termination Scheme with Structural Policy to Realize Future Perspectives for Those Who Remain took place in the Dutch House of Representatives. Daan Boezeman, on behalf of the PBL, discussed the lessons from previous termination schemes for the livestock sector. The position paper outlines that a termination scheme can effectively contribute to both economic perspectives (reducing manure disposal costs) and the environmental goals of a sustainable agricultural sector (nitrogen and climate).
Various Options to Promote Participation
There are various policy options to promote participation. Often, higher compensations or broader participation opportunities (pull factors) are employed. However, broader compensations also make a scheme attractive for profitable, future-proof companies, which can undermine efficiency. Furthermore, long-term clarity is essential. A structural scheme with different opening rounds can better align with the difficult and long-term cessation decisions of a livestock farmer than the ad hoc schemes of the recent past (see figure for an overview of recent schemes). Finally, so-called push factors are important. In the past, the sometimes area-specific tightening of rules forced more livestock farmers to choose between stopping or further developing.
Spatial Strategy
For improving nature quality, a termination scheme is especially effective if it is part of a spatial strategy with additional land policy. Better nature quality also requires different land use in the right locations. State aid rules allow differentiation of compensations. A long-term broad termination scheme can thus be combined with a scheme for specific areas where an extra premium is offered.