LTO: many starting points to work on

The coalition agreement contains agreements on many billions for the transition of rural areas and agriculture - including 25 billion for a nitrogen fund. This represents a break in the trend in the approach to social (sustainability) issues.

LTO Nederland recognizes much of its own commitment in this. However, there are also plans that are partly impracticable, LTO stated in an first reaction. In order to seize the opportunities, members of parliament and the cabinet will have to work together with the sector. This extensive analysis shows that there are many starting points for doing so.

'This coalition agreement is a change in trend - many billions are being placed in funds to finance a major transition. That's a positive thing. To ensure that the money leads to the right measures, and thus also lands on the farm, there is still a lot of work to be done. The Chamber's task is to clarify the questions and ambiguities and to translate them into workable and practical policy. It is up to the government to work with farmers and market gardeners to see how we can achieve our ambitions. The key to this is earning capacity, space for professional skills and a restoration of trust. We will discuss this with the new ministers of the Ministry of Agriculture, Nature and Food Quality,' says Sjaak van der Tak, chairman of LTO Nederland.

The new coalition expects a non-binding contribution from banks, suppliers, the processing industry and retail to the position of the farmer in the chain. This is fully in line with the efforts of LTO Nederland, which, among other things with the project 'Value Creation in Chains', is committed to a fair price for and treatment of the farmer and horticulturist. The consumer also plays a role in this; the agreement to provide food produced in the Netherlands with a label of origin therefore fits in well with the 'Orange bonus' which LTO is advocating. LTO will therefore make far-reaching agreements on this with the Minister.

The new cabinet is committed to improving the functioning of the labor market and wants to implement a number of major reforms. The goal is to increase the livelihood security of low- and middle-income workers, while at the same time reducing the burden. The new cabinet embraces the recommendations of the Social and Economic Council (SER) - of which LTO Nederland is a member - about the better functioning of the labor market, income distribution and equal opportunities.

The most striking proposal in the coalition agreement is the increase in the minimum wage. The new cabinet will introduce a minimum hourly wage with a stepwise increase of 7.5%. This will make work pay better and increase job security, but will of course substantially increase employers' costs and also intervene in wage structures in which the basic scales are based on the minimum wage. LTO Nederland is and remains of the opinion that when increasing the minimum wage, the increase in employer charges must also be taken into account. The aim should be to improve net incomes without significantly increasing the burden on employers.

The coalition agreement deals extensively with the importance of labor migration for various sectors, one of the spearheads of LTO Nederland. It recognizes that international workers make an important contribution to the Dutch economy; including international workers from countries outside the EU. The new cabinet recognizes that several sectors desperately need workers from outside the EU. LTO mentioned this in its election manifesto, and is therefore pleased with the recognition that this can contribute to solving the labor shortage. The new cabinet also remains committed to implementing the Roemer recommendations. The construction of quality housing is essential for this which is also stimulated with a substantial impulse in the construction of temporary housing. LTO welcomes this impulse and will remain actively involved in its implementation.

The new cabinet wants to strongly stimulate entrepreneurship. Entrepreneurs are indispensable for the Netherlands and for the earning capacity of our country. The small and medium-sized enterprises will receive special attention. The new cabinet wants to reduce the regulatory burden, make it easier to hire and retain employees, and make access to financing easier. The continuity of family businesses will receive extra support by simplifying business succession. This intention of the new cabinet is extremely important for business succession in agriculture and horticulture. LTO Nederland is pleased that improvement and simplification of business succession is now really going to happen. This provides more security for young entrepreneurs and also makes it easier to transition the business.

Public-private partnerships in the field of knowledge and innovation remain an important part of business policy. The Top Sectors policy will be continued, according to the coalition agreement. This is good news for agriculture and horticulture, where the top sectors Horticulture & Starting Materials and Agri & Food strengthen the economy with innovations, by taking advantage of international opportunities, solving societal challenges, increasing human capital and by investing in scientific research.

The top sector will continue to be responsible for the development of the agricultural sector.

With the new cabinet, the Netherlands is pursuing an active trade policy, in which trade and investment treaties (such as CETA) are an important instrument. In these treaties, the coalition is committed to high standards for fair production, human rights, food safety, sustainable growth and climate. At the same time we 'protect our entrepreneurs against unwanted investments and unfair competition. We support entrepreneurs and SMEs to be successful in the world.' This is in line with the commitment of LTO Netherlands, whereby it should be noted that (agricultural) products that are produced according to lower standards have no place on the European market.

In 2020, LTO signed the Crop Protection Implementation Programme 2030 with the government and other stakeholders, a transition programme that will continue to guide LTO in the coming years. In the coalition agreement it has now been agreed to intensify the "initiated transition to integrated crop protection by setting intermediate targets, promoting innovation and precision agriculture, stimulating green alternatives and decoupling sales and advice. The standards for the use of pesticides will be brought into line with the Water Framework Directive, and research will be conducted into the health effects on farmers and local residents.

LTO, together with the Ministry of Agriculture, Nature and Food Quality and other partners, is already working intensively on the transition to integrated crop protection under the Ministry's Implementation Programme Crop Protection 2030. The dot on the horizon in the program agreed last year is 2030, which for farmers and horticulturalists is only 9 planting or sowing times away. By 2030, plants and cultivation systems must be resilient. To realize this, new building blocks are needed, such as modern breeding techniques, resilient varieties, low-threshold (precision) technology and data utilization and (knowledge of) functional agrobiodiversity.

Following the advice of the Council on Animal Affairs (2020), the new coalition wants to take the initiative, in consultation with farmers, market parties, civil society organizations and other stakeholders, to formulate a covenant on the development of animal-worthy livestock farming. The covenant must include agreements on the time horizon, instruments and financial support. This covenant will form the basis of legislation that will come into force during the coming cabinet period to ensure that livestock farming is worthy of animal welfare and in balance with public health.

In response to the RDA's view on 'Dierwaardige Veehouderij', LTO indicated that livestock farmers want to move toward a way of farming in which animal welfare is even more central, and that they are already doing much in this area. The RDA put its finger on the sore spot by naming the tension that can exist between animal welfare on the one hand, and animal health and climate, for example, on the other. LTO emphasizes that animal welfare must be considered in its entirety in relation to public health, and that efforts in the former should not have a negative impact on public health.

The sustainability plans drawn up by the sectors in 2019 must be the guiding principles of the covenant. With the right approach and interpretation of a covenant, the government can therefore reach workable, realistic agreements with the livestock sector.

The coalition commits itself to "continuing the transition to circular agriculture in the areas of feed, manure, soil, lease, animal welfare and related innovations" in order to "bring agriculture and nature into balance". The coalition agreement also announces that cycles will be closed with the 'use of residual flows in cattle feed, the replacement of artificial fertilizer with organic manure and a soil-bound dairy farm'. There are many questions about the interpretation of these passages.

For years, the replacement of artificial fertilizer by (processed products from) organic manure has been a major spearhead of LTO Nederland. LTO Nederland calls on the Cabinet to speed up the recognition of the so-called synthetic fertilizer substitutes (RENURE). LTO Netherlands also stresses the importance of (crop) derogation. Europe is linking the Dutch request for derogation to the water quality discussion. It is therefore important to start discussions immediately about the useful and effective spending of the more than 800 million euros that have been additionally reserved for the Water Framework Directive.

The elaboration of the coalition's ideas is unclear, however, and so the passage mainly raises questions: how much artificial fertilizer do they want to replace with what organic manure? When? How do the coalition parties envision land-based dairy farming? What new residual flows are being considered for cattle feed? Behind these kinds of questions lies a complex world; the answers can therefore only be addressed with the sector and chain parties.

The flooding in Limburg this summer has once again forced us face to face with the facts, according to the new cabinet: 'climate change is here and now and also affects our own country, so in addition to climate mitigation we must also work hard on climate adaptation'. In addition to climate mitigation, we must therefore also work hard on climate adaptation'. The coalition agrees to 'work towards new Delta Decisions for a water-safe country with sufficient fresh water and a future-proof layout. Water and soil will become guiding principles in spatial planning. For this reason water boards will be involved at an earlier stage and the water test will have a more obligatory character.

LTO Nederland agrees that changes in the climate affect agricultural entrepreneurs directly in their business operations. In the field of water, LTO Nederland works with its members through the Delta Plan for Agricultural Water Management on numerous projects related to adaptation. In doing so, we recognize that "water" as a steering mechanism is becoming increasingly important. Sufficient water of good quality is even an existential condition for agricultural production. It is certain that the agricultural sector will have a greater demand for water in the future. This calls for appropriate measures with respect to water availability. LTO Nederland assumes that the water system can absorb the greater weather extremes resulting from climate change by making maximum use of the cushioning sponge effect of the soil/subsoil and the natural height differences for water retention.

Source: lltb.nl. Read the detailed post on the website of LTO Nederland (January 4).