Budget LVVN: 2.6 billion extra for nitrogen follow-up package, more support for farmers and horticulturists

The Netherlands must get rid of the nitrogen lock as soon as possible. This can only be done step by step. Even though the cabinet is demissionary, we need to take additional measures to reduce nitrogen and restore nature. Therefore, the cabinet is now coming up with a follow-up package of € 2.6 billion one-time and € 287.5 million structurally, on top of the starter package from April. The package consists of various measures that build on the starter package. The cabinet wants to invest extra money in goal steering. This is a system change where farmers can independently steer towards goals, such as nitrogen reduction, based on their own expertise and entrepreneurship. The binding, company-specific goals for agriculture will be established in 2026. Therefore, the cabinet is now reserving extra money to set up the data and monitoring system, develop a supervision and enforcement regime, and start with pilots. Additionally, there is reserved money in the follow-up package for innovations, and there is annual extra budget for agricultural nature management, allowing the number of hectares under management to grow from 100,000 to about 280,000 hectares. There is also extra budget for the voluntary termination scheme, the Approach Peak Load Industry, nature restoration measures, and a regional approach in the areas around Rotterdam, Eindhoven, and in the Green Heart. The total investment that this cabinet is making for nitrogen reduction, agriculture, and nature (starter package and follow-up package) amounts to € 5.6 billion one-time and € 500 million structurally. The follow-up package will be financially covered by the remaining budget of the agricultural envelope from the main lines agreement. In the coming period, the cabinet will discuss the exact implementation and execution of this. A package with safeguards For nature restoration and initiating the permitting process, it is crucial that the intended nitrogen reduction is actually realized. The cabinet has therefore made additional agreements regarding the so-called safeguarding of the measures. In the starter package, it was already agreed that the mobility and industry sectors must have achieved 50% nitrogen reduction by 2035, and the agricultural sector 42-46% (compared to 2019). Additionally, target values for all three sectors will be established for 2030. If monitoring, starting from 2027, shows that the target value is not being met, the cabinet will consider additional measures.

Red diesel money for innovation and renewal Another important adjustment to the budget is the allocation of structurally € 146 million to provide farmers, horticulturists, and contractors with perspective. This amount was intended for the reintroduction of red diesel, but this proved complex in implementation. Therefore, this amount is now being freed up so that this money reaches the farm more quickly. Investments are being made in programs that farmers can benefit from in the short term, which are practical and build as much as possible on existing and successful approaches. Thus, the money goes to:

• Schemes for business succession, innovation, and investments, through the new Common Agricultural Policy starting in 2028

• Labor-saving techniques, through robotization, innovation, and digitalization

• The National Green Fund, where entrepreneurs can invest in sustainability at favorable interest rates, as is already the case through the Sustainable Agriculture Investment Fund. • Plans that allow farmers to make their business plans future-proof and work on their resilience.