This year and next, the Netherlands will receive a total of over €52 million from the large European corona recovery fund to provide economic aid to agriculture. Minister Carola Schouten of Agriculture, Nature and Food Quality wrote this to the House of Representatives.
The money will be made available to the agricultural sector through two already existing national subsidy schemes: the Investment Scheme for Green Economic Recovery and the Cooperation Scheme for Green Economic Recovery.
Agricultural businesses across the European Union have been affected by the consequences of the coronavirus pandemic. To support them, the European Commission has allocated part of the European Recovery Fund for agriculture.
From this recovery fund, the Netherlands will receive €52.4 million over the next two years for rural development and economic recovery. In 2021, €15.5 million will be allocated, and in 2022 this will be €36.9 million. These additional funds come via the Rural Development Programme of the Common Agricultural Policy (CAP) (POP3+).
Dutch agricultural entrepreneurs can apply for this money through two national schemes. These schemes focus on promoting precision agriculture, young farmers, digitalization, short supply chains, tackling drought and salinization, area-based pilots, and nature-inclusive farming.
The European Commission has attached several conditions to the spending of these funds. At least 55% of the subsidy must be spent on economic recovery and at least 37% on environmental and climate goals.
Furthermore, Minister Schouten has made additional agreements with provinces and water boards regarding rural subsidies for the years 2021 and 2022 (POP3+). This transition programme is in effect until the new European Common Agricultural Policy comes into force in 2023.
In POP3+, the focus will primarily be on climate, biodiversity, and circular agriculture (including nitrogen). This means subsidies for these subjects will be eligible earlier than before.
In total, over €545 million is available for the Rural Development Programme in 2021 and 2022, of which more than €342 million comes from EU funds. The remaining €202.8 million is provided by provinces, water boards, and the national government.