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Exploring the CAP Eco-Scheme for Dutch Dairy Farmers: Are Grant Recipients More Sustainable?

Author

Listed:
  • Jooske de Sonnaville

    (The Netherlands Court of Audit, Lange Voorhout 8, 2514 ED The Hague, The Netherlands)

  • Renske Stans

    (The Netherlands Court of Audit, Lange Voorhout 8, 2514 ED The Hague, The Netherlands)

  • Maaike Damen

    (The Netherlands Court of Audit, Lange Voorhout 8, 2514 ED The Hague, The Netherlands)

  • Ernst Bos

    (The Netherlands Court of Audit, Lange Voorhout 8, 2514 ED The Hague, The Netherlands)

Abstract

The European Union’s latest common agricultural policy (CAP) aims to minimise the negative consequences of agriculture on the environment and climate. This ambition has been translated into the introduction of eco-schemes, which stimulates farmers to transition to sustainable agriculture. This paper answers three questions regarding the operation of the eco-scheme for livestock farming in The Netherlands. First, who are the recipients of the eco-scheme grants? Second, how have EU grants developed over time for these recipients? Third, do eco-scheme recipients farm more sustainably? To answer these questions, we conducted an empirical analysis based on administrative and microeconomic data, which included indicators to measure sustainable farming practices. Our results show that most recipients of the Dutch eco-scheme are dairy farmers and that larger farms receive relatively more grant funding per hectare. The introduction of the eco-scheme marked a shift toward less grant funding for income support and more to encourage sustainable farming practices. This has triggered a significant downturn in the financial situation of many Dutch dairy farmers. Dairy farmers who score higher on sustainability indicators on average benefit more from the eco-scheme, although there is also a substantial share of dairy farmers who have benefited financially but score relatively low on sustainability. These insights contribute to the further improvement of the EU’s agricultural policies toward a successful transition to more sustainable agriculture.

Suggested Citation

  • Jooske de Sonnaville & Renske Stans & Maaike Damen & Ernst Bos, 2025. "Exploring the CAP Eco-Scheme for Dutch Dairy Farmers: Are Grant Recipients More Sustainable?," Sustainability, MDPI, vol. 17(11), pages 1-14, June.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:11:p:5166-:d:1671775
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    References listed on IDEAS

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    1. Klaas Calker & Paul Berentsen & Gerard Giesen & Ruud Huirne, 2005. "Identifying and ranking attributes that determine sustainability in Dutch dairy farming," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 22(1), pages 53-63, March.
    2. H. Guyomard & Zohra Bouamra-Mechemache & Vincent Chatellier & Luc Delaby & Cécile Détang-Dessendre & Jean-Louis Peyraud & Vincent Requillart, 2021. "Why and how to regulate animal production and consumption: the case of the European Union," Post-Print hal-03312770, HAL.
    3. Katarina Arvidsson Segerkvist & Helena Hansson & Ulf Sonesson & Stefan Gunnarsson, 2020. "Research on Environmental, Economic, and Social Sustainability in Dairy Farming: A Systematic Mapping of Current Literature," Sustainability, MDPI, vol. 12(14), pages 1-14, July.
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