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According to the Dutch authorities, it is possible that non-dairy farms keep dairy cattle and fall within the scope of the State aid decision

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E-005482/2018

Answer given by Ms Vestager

on behalf of the European Commission (11.12.2018)

It is the responsibility of the Netherlands to manage the system of tradable phosphate rights in line with the State aid decision SA.46349, should it want to stay within the boundaries of that decision. In April 2018, the Dutch government communicated to the Commission that it is working to resolve certain issues with the correct allocation of rights, following an unclear definition of young stock in Dutch legislation.

In principle, non-dairy farms are not required to hold phosphate rights under the State aid scheme that the Commission approved. The scheme covered by the State aid decision SA.46349 concerns the emissions from dairy cattle and the Commission’s approval is predicated on the total number of allocated phosphate rights remaining below the approved ceiling of 84.9 million kilogrammes.

According to the Dutch authorities, it is possible that non-dairy farms keep dairy cattle and fall within the scope of the State aid decision. The Netherlands took the same position in relation to young dairy cows, including calves or young cattle that a farm raises and that are destined to become dairy cows or otherwise destined to have a calf. The Commission understands that the Dutch government is now considering revisiting some allocations given to certain farmers.

The system allows the Dutch authorities to deal with unforeseen problem cases such as farms that invested in new stables but did not have enough dairy cattle on their farms on 2 July 2015, the baseline date. The Netherlands could allocate the necessary emission allowances to meet the needs of such farms, as long as the total number remains below the approved ceiling. It is for the

Netherlands to decide whether to bring the number of allocated rights further below the ceiling and have a buffer in the system allowing the Dutch government to intervene in unexpected problem cases.

The Dutch government has so far confirmed that it wants to use any withdrawals to ensure compliance with the approved ceiling.

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