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Timmermans: State aid rules soon to play role in voluntary takeover of farmers Related articles

Diederik Samsom, chief of staff to European Commissioner Frans Timmermans, advised agriculture ministry officials to buy out some farmers. This is evident from the documents that NOS and Follow The Money have seen. Timmermans stresses that it is up to the Member States which approach to choose.

Under European standards, voluntary takeover of farmers is often more difficult than forced takeover. “State aid rules quickly come into play.” (ANP/EPA/STEPHANIE LECOCQ)

Voluntary buying by farmers is often more difficult under European rules. “Because a lot of public money is used, state aid rules soon come into play,” says Timmermans.

According to political journalist Leendert Beekman, Brussels may opt out of the voluntary acquisition program if the program is too generous and farmers are overcompensated by the government.

But what about state aid? “This is the time when farmers receive more compensation from the government than the normal compensation for the damages suffered.” Farmers must therefore be compensated because they have to stop their business activities, there is economic value in return. “But you can’t go to a farmer with a blank check and say: here’s half a million euros, retire”.

It’s hard to say how much space the Netherlands will get from the EU when it comes to voluntary takeover of farmers. “Caroline van der Plas also always points out that now that we are talking about farms, it is difficult to say how much such a farm is still worth.” The Agriculture Ministry says it will compensate adequately and look into it closely. ‘The voluntary buyout is 100 percent in return.’ If Brussels deems the acquisition amount to be excessive, it really can refuse.’ And it’s not the intention that farmers who are taken over in the Netherlands then use that money to set up a new farm across the border.

Legal

In the case of forced takeovers, it is legally easier within the EU to get a broader state aid regime than if there is no coercion behind it, because you also have to be compensated for having to quit. ‘This is a completely different discussion to the one we are currently having in the Netherlands. The Dutch state wants to focus on voluntary acquisition, because the legal procedure in the Netherlands is much longer if you compulsorily do it. In the Netherlands, someone can go to court and appeal against coercion. It could take years, and we don’t have that time,’ says Beekman.

Author: Lisa van der Velde
Source: BNR

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