The European Commission has approved, under EU State aid rules, an amendment of a Dutch scheme compensating livestock farmers for voluntarily closing livestock farms in nature conservation areas in the Netherlands.

The amendment consists of a budget increase of €78 million, bringing the total budget of the scheme to €128 million.

The existing scheme was approved by the EU Commission in August 2024.

The objective of the scheme is to reduce nitrogen (N) deposition caused by farming activities in "overburdened Natura 2000 sites".

"This aligns with the conservation objectives and requirements of the Birds and Habitats Directive, and contributes to the sustainable and environmentally friendly development of livestock farming," the commission said.

Under the scheme, the aid takes the form of direct grants and covers up to 120% of the eligible costs for farmers.

This includes compensation for the loss of production capacity and for the costs of dismantling and disposing of it.

The scheme is in place until October 2029 and is open to small and medium-sized livestock farmers in the Netherlands that voluntarily and irrevocably close their breeding sites, where the nitrogen deposition load exceeds certain minimum levels.

The commission assessed the amendment under the Treaty on the Functioning of the EU, which allows member states to support the development of certain economic activities under certain conditions.

It also assessed the measure under the 2022 Guidelines for State aid in the agricultural and forestry sectors and in rural areas.

The commission found that the scheme remains necessary and appropriate to achieve the objective pursued.

The commission also found that the scheme "remains proportionate, as it is limited to the minimum necessary, and will have a limited impact on competition and trade in the EU".

On this basis, the commission said that it approved the amendment under EU State aid rules.