The EU has approved a €105 million subsidy to support Dutch livestock farmers in reducing nitrogen pollution by relocating away from environmentally sensitive areas. Brussels announced that farmers who move from Natura 2000 sites could receive public funds, following strong opposition to green measures.

Since 2019, the Netherlands, a major agricultural producer, has witnessed widespread farmer protests against government efforts to reduce nitrogen emissions, including ammonia from manure, slurry, and chemical fertilisers. These protests contributed to the Farmer-Citizen Movement (BBB) joining a new right-wing coalition that took office recently.

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The approved subsidy scheme offers compensation to farmers who voluntarily relocate from Natura 2000 sites affected by nitrogen deposition, which can harm the environment and violate the Habitats Directive, an EU conservation law.

Small and medium-sized livestock farm owners can receive grants covering up to 100% of the costs for moving their operations, dismantling, and reassembling farm infrastructure, and restoring abandoned sites, even if they relocate to another EU country.

Under EU single market regulations, national subsidies are often scrutinised to ensure they serve legitimate policy objectives without distorting markets. The European Commission stated that the Dutch scheme, which will run until 2029, is ‘necessary and appropriate’ to promote sustainable livestock farming and aligns with the EU's Green Deal on climate change.

This decision comes 14 months after EU officials approved €1.47 billion in state aid to cover up to 120% of the costs for farmers who choose to close their livestock operations rather than meet stricter nitrogen limits. Despite having the second-highest population density in the EU after Malta, the Netherlands remains the world's second-largest agricultural exporter, with exports nearing €124 billion last year, according to official data.

The new government, which includes the BBB, has pledged to ease restrictions following widespread protests against the previous government's nitrate reduction policies under liberal Prime Minister Mark Rutte.