Defatted phosphate rights will not be available to the sector in 2023. This is partly because there is still limited room within the sectoral production ceiling and because objection procedures are still in progress, and interim Minister Carola Schuten for Agriculture, Nature and Food Quality announced this in a letter to the House of Representatives .
The objective of the Phosphate Bank is to enhance the linkage to the land on the dairy farms by making available the defatted phosphate rights from the Phosphate Bank to the sector again via a lottery system in the form of
Temporary exemptions for five years. In order to achieve the goal of strengthening the link to the land, only the land-bound farmer can apply, and the “young” land-bound farmer is the
Draw a double chance to be drawn. The phosphate bank is “filled” with fat (10%) when the phosphate rights are transferred.
Not open next year
However, the Phosphate Bank will not open this fall. A decision will only be made during 2023 on whether to open the Phosphate Bank for the exemptions in effect from January 1, 2024. Schutten realizes that this decision is not the part the sector is hoping for, but he wants to offer companies a realistic perspective and can be done in a number of ways. . Not yet at this time.
This decision is based on three considerations. According to the interim minister, the first and most important consideration is that on September 1, 2022 (the “test moment” to open”) there is no scope for granting (temporary) exemptions from the Phosphate Bank. If these exemptions are allowed, the sectoral phosphate production ceiling of 84.9 million kilograms may be exceeded .
Very few phosphate rights are available
Due to reduced realized and projected transactions, the number of phosphate rights is estimated to be about 36,000 kg below the sectoral phosphate production ceiling. While exemptions already granted must be taken into account in the course of the objection and appeal procedures, which may reach 100,000 kilos. It is true that there will still be room at the end of the year through the trade in phosphate rights, but at the assessment date of September 1, it is uncertain whether and how wide such room will be available.
Second, Schouten wants to prevent that, given the introduction of no-farm areas in 2023, exemptions granted must be adjusted downward if the inspection shows that the required attachment to the land has not been met due to the no-farm areas. A participant in the phosphate bank then has to reduce livestock again in the same year.
Handle all objections first
The third consideration is in keeping with the wishes of the House of Representatives, as expressed in the motion adopted by the members of Lodders and Geurts. It demanded that the phosphate bank not be opened until all objections were settled within the framework of the phosphate rights system. 2022 will probably be the last year something like this happens
Objection and appeal procedures are in progress.
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