Netherlands Launches €627 Million Program to Pay Farmers for Reducing Dairy Herds
The Hague, Wednesday, 15 April 2026.
Dutch government receives EU approval for groundbreaking subsidy scheme offering dairy farmers €1,606 annually per cow to voluntarily reduce herds by 10-20 percent over three years. The program aims to cut nitrogen emissions and could eliminate 64,000 dairy cows nationwide, representing four percent of total livestock.
European Commission Grants Final Approval
On April 14, 2026, Agriculture Minister Jaimi van Essen announced that the European Commission had approved the Dutch subsidy scheme for herd size reduction [1]. The approval came after extensive review by Brussels, which determined that the program would contribute to reducing greenhouse gas emissions - a key objective of the European Union [2]. The European Commission specifically noted that the regulation could stimulate the transition to less intensive business models while ensuring that Dutch state aid would not endanger trade traffic between other member states [2].
Financial Structure and Timeline
The extensiveringsregeling, as the program is officially known, will open for applications between June 1 and July 29, 2026 [1]. Participating farmers will receive €1,534 per year per cow, plus an additional €110 per cow for phosphate rights, totaling €1,606 per cow annually for three years [1]. The Dutch cabinet has allocated €627 million for the scheme, with over €11 million designated for execution costs [1]. The program operates on a first-come, first-served basis, regardless of proximity to nature reserves [1]. Once subsidy approval is granted, farmers must remove their cattle within four weeks [1].
Environmental Impact Projections
Minister van Essen estimates the scheme could eliminate up to 64,000 dairy cows, representing approximately 4 percent of the Dutch total dairy herd [1][2]. This reduction is projected to decrease ammonia emissions by 0.5 megaton and CO2 emissions by 0.3 megaton [1]. The program specifically targets nitrogen emissions and manure production in the Netherlands, addressing long-standing environmental concerns in the agricultural sector [1][2]. The ministry believes the program will prove attractive due to current low milk prices, with farmers close to retirement or those wanting to switch operations expected to participate [1].
Operational Requirements and Market Context
Farmers participating in the subsidy program must meet specific conditions, including maintaining the same amount of grassland on their property and refraining from replacing dairy cows with other grazing animals [1]. The scheme builds upon existing regulations established in 2018, when Dutch dairy farmers began requiring phosphate rights to own cows [1]. Banks have previously agreed to provide interest rate discounts for participating farmers making sustainable investments, following requests from the Tweede Kamer [2]. If farmers choose to return to their previous herd size after the three-year period, they must repurchase the necessary rights on the market [2]. The program represents a continuation of policies prepared by van Essen’s predecessor, Femke Wiersma, in response to parliamentary requests for voluntary herd reduction measures [1].