Dutch Government Incentivizes Dairy Farmers to Reduce Herds

The Netherlands has introduced a new government scheme designed to reduce the number of dairy cows, as part of broader environmental efforts. The program, which started on June 1, offers financial incentives to farmers who agree to reduce their herd sizes by 10 to 20 percent compared to their 2025 average for a period of three years.

Under this initiative, participating farmers will receive €1606 annually for each cow they remove from their herds, along with an additional €110 for every phosphate right that is canceled. These rights, once canceled, will be permanently removed from the market, preventing any increase in livestock numbers beyond the agreed reduction.

The Dutch government has allocated a total of €627 million to fund this scheme, with individual support capped at €400,000 per farmer. Moreover, farmers are required to maintain their current grassland areas and are prohibited from increasing other types of grazing livestock during the program's duration.

After the three-year period, farmers have the option to maintain their reduced herd sizes or rebuild by purchasing or leasing phosphate rights. The Dutch dairy industry reports an average yield of 9299 kilograms of milk per cow annually as of 2024.

This initiative is part of the Dutch government's broader strategy to lower environmental pollution by targeting ammonia and greenhouse gas emissions, as well as reducing manure production.