Dutch agriculture needs responsible transition policy
- dr. AC (Anne-Charlotte) Hoes
- Senior Researcher
Over the past five years, Wageningen Social & Economic Research (WSER) has carried out the policy-supporting research programme Transition to Circular Agriculture for the Ministry of Agriculture, Fisheries, Food Security and Nature (LVVN). Yet, the realisation of the agricultural transition has been slow. “The ministry could do more to help farmers mitigate the risks of transition,” says project leader Anne-Charlotte Hoes. “It is also important to give pioneers an encouraging push.”
System transition in agriculture is a tremendous challenge. The goal is to develop a farming system that operates within planetary boundaries, is fair and workable, and also profitable. Fundamentally changing agriculture takes years. It requires a shift in thinking and practice by both farmers and policymakers, and the transformation of the entire agri-food production chain, from seed breeding to consumer. Bringing about such a transition calls for something very different from project or even crisis management. It demands a long-term strategy in which markets, government and the knowledge system all adapt. Based on five years of research, project leader Anne-Charlotte Hoes presents a number of conclusions and recommendations to help shape the agricultural transition in a responsible way.
The research highlights the following. There are already several dozen farm-level options for making agriculture more sustainable, which all have support among farmers. But options that are easy to integrate into existing systems and that really help to address water and nature challenges are rare (see box, report 2). More effective measures often require additional money and labour.
“If we are to move away from our dependence on fossil resources and strive for a bio-based economy, we will need farmers in the future more than ever.”
- Anne-Charlotte Hoes
On the other hand, the Netherlands has more than 250 innovative farms already applying the principles of circular agriculture in various ways. They are producing plant- and/or animal-based food differently (see box, report 1). These farmers are, as it were, stepping outside conventional business and revenue models. Their income may come from shorter supply chains or services for citizens. They are skilled at stacking payments for water and landscape management, or they provide unique products such as plant-based dairy produced in the Netherlands.
These pioneers show that agriculture can be different and serve as an inspiration for other farmers, supply chain partners and policymakers. Although they are working on and ahead of the ministry’s objectives, they receive little support for this. The government currently focuses primarily on tackling the biggest polluters, while supporting the more radical bottom-up innovators is somewhat neglected.
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The transition in agriculture to, for example, circular agriculture or other forms of sustainable agriculture is getting off to a slow start. This is evident from five years of research by Wageningen Social & Economic Research into how this transition can take place in a responsible manner.
According to Anne-Charlotte Hoes, the following four actions are needed to enable a responsible agricultural transition:
Involve farmers in shaping regional visions for the future
If we want to move away from fossil dependency and move towards a bio-based economy, we will need farmers in the future. It helps to create, at local level, a realistic shared vision of the future that energises, connects and fits within a European context. The agricultural and ecosystem knowledge that farmers possess in abundance will be essential for the future — knowledge of land use, crops, animals, water, biodiversity and nature-based solutions. Encourage diversity in farm types and revenue models, as this makes the overall system more resilient.
Provide financial, legal and social support for sustainability pioneers
A transition cannot be achieved through small improvements alone. For years, the farming sector, policymakers and researchers have focused on optimising the current agricultural system. More radical innovators, however, are designing new systems, sometimes outside the existing framework. The transition as a whole will progress faster if the ministry pays more attention to these pioneers, embraces them, and supports them. This can be done, for example, by making innovation and research funds available.
Establish implementing organisations that bridge policy and farmers
Until 2015, commodity boards existed for agricultural sectors, developing a wealth of agronomic knowledge. There were also practice-oriented government bodies such as the Innovation Network and the Government Service for Land and Water Management. Unfortunately, we have lost this infrastructure that bridged farmers and policy. The gap between the ministry and local farms has become too wide. To help farmers responsibly develop their businesses for the future, implementing organisations are needed that have solid expertise and practical knowledge.
Help farmers temporarily cover risks, for example with guarantees
Fortunately, there are farmers willing to take a different path. But switching is often too risky for individual farmers. In today’s highly optimised production system with tight margins, they cannot afford mistakes or failures. Farmers who switch need time to master new management practices or improve soil health, for example. It is therefore important to relieve them of risks when they embark on a new course. This could include temporary market guarantees.
Five years of research
Over five years, several studies were completed, since transitions have a multi-level character that touches all parts of the agricultural system. First, an inventory was made of innovative circular farmers. What exactly are the pioneers doing, and what can help them? Next, measures were examined: which farm-level options can help conventional farmers make the shift to circular agriculture in five sectors? A study on the manure dossier then gave both dairy farmers and civil servants the floor to speak about manure practices and environmental policy. This research exposed conflicting objectives and offered advice.
How do you stimulate a responsible transition? A retrospective and forward look at major developments in dairy farming, laying hens and arable farming since around 1950 provided a helicopter view with pointers for policy.
Finally, the experimental areas policy deployed by the ministry between 2019 and 2023 was reviewed. How can the ministry actively create more room for experimental approaches?
Pioneers
This report presents portraits of seven pioneering farms with different innovative approaches to circular agriculture, such as:
- Valuing residual flows such as heat (greenhouse cultivation without gas);
- Reducing inputs through ecology (biodynamic dairy);
- Plant-based protein dairy (Dutch-grown soya);
- Natural environment as a starting point (cranberry cultivation);
- High-tech closed systems (highly efficient broiler chickens);
- Modern mixed farm (with pick-your-own garden and direct sales);
- Community-supported models (permaculture without land ownership).
Many pioneers also experiment with alternative business models, such as:
- Shorter supply chains (farm shop, direct delivery to shops or restaurants, subscription models with members);
- Services and activities for citizens and businesses (pick-your-own garden, tea garden, consultancy work, recreation and meeting venues);
- Stacking income from nature conservation, water management or care-related daytime activities;
- Distinctive products with added value through their own brand or label with a fixed premium.
Recommendation
Support these pioneers and help them with research to answer their knowledge questions. Also, work on adjusting obstructive laws and regulations. Pioneers often opt for alternative revenue models to keep their businesses profitable. The government can encourage pioneering with favourable loans or guarantees. Existing government instruments that fit here include the agricultural loan guarantee scheme and the National Green Fund.
Read the report
Implementable measures
In this report, 178 potential measures were identified that contribute to circular agriculture in poultry farming, dairy, pig farming, greenhouse horticulture and arable farming. These measures were assessed by farmers from these sectors who are up to date and have a good understanding of circular agriculture.
However, additional costs, extra work and regulations often prove to be the barriers to adopting sustainable measures, leading to stagnation.
Recommendation
Be aware that many measures for circular agriculture involve replacing practices that bring short-term benefits to the entrepreneur, such as reduced labour or higher yields. Sustainability will therefore not take root if it is left solely to market incentives.
Based on this study, the government and sectors can select measures they wish to make easier to adopt by tackling the identified barriers to adoption.
Read the report:
Tensions in manure policy
The manure dossier has been a source of tension between farmers and policymakers for 50 years. Since 2019, the ministry has been working on new manure policy.
This research presents portraits of five dairy farmers who are improving nutrient cycles on their farms in various ways. It also includes reflections from civil servants on manure policy.
A key finding is that both dairy farmers and civil servants find it illogical to have to dispose of livestock manure while still being allowed to spread artificial fertiliser. In practice, this places different policy objectives in opposition to each other.
The study identifies six areas of tension, based on discussions with both dairy farmers and civil servants.
Recommendation
To carefully shape the new manure policy, it is important to gain a clearer picture of the consequences of the proposed policy for different types of dairy farms.
In addition, strengthen the perspective of land-based dairy farming for clean water, with objectives relating to climate, biodiversity and health. Extensification requires new revenue models, such as shorter chains, payment for green services via KPIs, True Pricing, or administrative benefits.
Furthermore, clear and accessible communication is needed about the how and why of the upcoming manure policy.
Read the report:
Major developments in three sectors
This report takes a helicopter view of the past, present and future of Dutch agriculture — specifically in poultry farming, dairy and arable farming — and draws lessons for a responsible transition.
It also highlights important current innovations in these sectors, such as:
- Animal meal and insects as alternatives to soya;
- The cow toilet;
- Plant-based milk;
- KPIs for goal-oriented policy;
- Precision farming;
- New breeding techniques;
- Bio-based materials.
Recommendation
Use more policy interventions alongside the soil strategy, rethinking of manure policy, future vision for crop protection and the experimental areas policy.
In particular, consider the possibility of converting agricultural land into landscape land. Align buy-out schemes with natural turnover to fill the land bank for young farmers and circular agriculture.
Transition management for circular agriculture is new for the ministry, so it is important to start a structured learning process. Provide support for alternative practices so they can flourish. And involve farmers in shaping regional visions for the future, as most farmers currently lack a realistic and inspiring outlook.
Read the report:
Room for experimentation
Space for fundamentally innovative experiments is a necessity in any transition. That space is currently lacking due to regulations, market dependencies and business lock-ins.
In 2019, the ministry therefore designated five experimental areas to create such space. This report evaluates the outcomes of the policy between 2019 and 2023.
Recommendation
Continue with the experimental policy, as it is urgently needed:
- Provide legal, financial and social space;
- Create a procedure for applying for legal space;
- Offer guidance on experiments: what deserves support?;
- Ensure that the ministry is involved in feedback to policy and in the selection process. .
Read the report:
Pioneers
This report presents portraits of seven pioneering farms with different innovative approaches to circular agriculture, such as:
- Valuing residual flows such as heat (greenhouse cultivation without gas);
- Reducing inputs through ecology (biodynamic dairy);
- Plant-based protein dairy (Dutch-grown soya);
- Natural environment as a starting point (cranberry cultivation);
- High-tech closed systems (highly efficient broiler chickens);
- Modern mixed farm (with pick-your-own garden and direct sales);
- Community-supported models (permaculture without land ownership).
Many pioneers also experiment with alternative business models, such as:
- Shorter supply chains (farm shop, direct delivery to shops or restaurants, subscription models with members);
- Services and activities for citizens and businesses (pick-your-own garden, tea garden, consultancy work, recreation and meeting venues);
- Stacking income from nature conservation, water management or care-related daytime activities;
- Distinctive products with added value through their own brand or label with a fixed premium.
Recommendation
Support these pioneers and help them with research to answer their knowledge questions. Also, work on adjusting obstructive laws and regulations. Pioneers often opt for alternative revenue models to keep their businesses profitable. The government can encourage pioneering with favourable loans or guarantees. Existing government instruments that fit here include the agricultural loan guarantee scheme and the National Green Fund.
Read the report
Implementable measures
In this report, 178 potential measures were identified that contribute to circular agriculture in poultry farming, dairy, pig farming, greenhouse horticulture and arable farming. These measures were assessed by farmers from these sectors who are up to date and have a good understanding of circular agriculture.
However, additional costs, extra work and regulations often prove to be the barriers to adopting sustainable measures, leading to stagnation.
Recommendation
Be aware that many measures for circular agriculture involve replacing practices that bring short-term benefits to the entrepreneur, such as reduced labour or higher yields. Sustainability will therefore not take root if it is left solely to market incentives.
Based on this study, the government and sectors can select measures they wish to make easier to adopt by tackling the identified barriers to adoption.
Read the report:
Tensions in manure policy
The manure dossier has been a source of tension between farmers and policymakers for 50 years. Since 2019, the ministry has been working on new manure policy.
This research presents portraits of five dairy farmers who are improving nutrient cycles on their farms in various ways. It also includes reflections from civil servants on manure policy.
A key finding is that both dairy farmers and civil servants find it illogical to have to dispose of livestock manure while still being allowed to spread artificial fertiliser. In practice, this places different policy objectives in opposition to each other.
The study identifies six areas of tension, based on discussions with both dairy farmers and civil servants.
Recommendation
To carefully shape the new manure policy, it is important to gain a clearer picture of the consequences of the proposed policy for different types of dairy farms.
In addition, strengthen the perspective of land-based dairy farming for clean water, with objectives relating to climate, biodiversity and health. Extensification requires new revenue models, such as shorter chains, payment for green services via KPIs, True Pricing, or administrative benefits.
Furthermore, clear and accessible communication is needed about the how and why of the upcoming manure policy.
Read the report:
Major developments in three sectors
This report takes a helicopter view of the past, present and future of Dutch agriculture — specifically in poultry farming, dairy and arable farming — and draws lessons for a responsible transition.
It also highlights important current innovations in these sectors, such as:
- Animal meal and insects as alternatives to soya;
- The cow toilet;
- Plant-based milk;
- KPIs for goal-oriented policy;
- Precision farming;
- New breeding techniques;
- Bio-based materials.
Recommendation
Use more policy interventions alongside the soil strategy, rethinking of manure policy, future vision for crop protection and the experimental areas policy.
In particular, consider the possibility of converting agricultural land into landscape land. Align buy-out schemes with natural turnover to fill the land bank for young farmers and circular agriculture.
Transition management for circular agriculture is new for the ministry, so it is important to start a structured learning process. Provide support for alternative practices so they can flourish. And involve farmers in shaping regional visions for the future, as most farmers currently lack a realistic and inspiring outlook.
Read the report:
Room for experimentation
Space for fundamentally innovative experiments is a necessity in any transition. That space is currently lacking due to regulations, market dependencies and business lock-ins.
In 2019, the ministry therefore designated five experimental areas to create such space. This report evaluates the outcomes of the policy between 2019 and 2023.
Recommendation
Continue with the experimental policy, as it is urgently needed:
- Provide legal, financial and social space;
- Create a procedure for applying for legal space;
- Offer guidance on experiments: what deserves support?;
- Ensure that the ministry is involved in feedback to policy and in the selection process. .
Read the report:
Contact
Do you have any questions about agriculture and transition policy? Ask our expert:
dr. AC (Anne-Charlotte) Hoes
Senior Researcher
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