Policies for the Future of Farming and Food in the Netherlands is part of a series of country studies that apply the OECD Agro-Food Productivity-Sustainability-Resilience Policy Framework (PSR), an evidence-based approach to assess if the policy environment is conducive to achieving sustainable agricultural productivity growth and increased resilience. To date, the PSR Framework has been applied to reviews of Australia, Brazil, Canada, the People’s Republic of China, Estonia, the European Union, Japan, Korea, Latvia, the Netherlands, Norway, Spain, Sweden, Türkiye, and the United States.

The Dutch food, agriculture and horticulture sector is efficient, productive and export oriented, with high value added along the food chain and significant world export shares for many products. The mild maritime climate, flat fertile terrain, geographical position and sea, river, road and aviation infrastructure are advantageous for both agricultural production and trade. A few hundred million potential consumers reside within a 500 km radius.

The agriculture and food sector in the Netherlands is innovative and productive, competing in global markets on both price and quality. The sector has followed a development path common to most countries where ongoing consolidation reduces the number of farms while average farm size increases. The agriculture sector has become one of the most efficient in Europe and the world. Trade has expanded fourfold in the past 20 years and the Netherlands is the second largest agricultural exporter in the world, in part due to its role as a major trading hub for Europe. The importance of the greenhouse and horticulture sector as a share of agricultural production value is unique in Europe. The horticulture sector operates on a different model than does the rest of Dutch agriculture; it uses relatively little land, receives a small amount of support from agricultural policy and is exposed to different risks than other forms of production.

This chapter finds that the Netherlands has taken actions that fully or partially address about 80% of the recommendations made in 2015. The innovation system remains a world leader and effectively translates R&D resources into results on the farm. The system is stronger than it was eight years ago thanks to action to improve funding sources, research infrastructure and institutional arrangements. It benefits from a defined vision for the future and associated long term goals. The connection between actors in the agricultural knowledge system has been improved by better integration of research, education and extension. A key challenge is ensuring that the innovation system is as effective as possible in targeting issues of public importance such as environmental sustainability.

The Netherlands is the world’s second-largest exporter of agricultural products, and agricultural products represent 17% of Dutch exports. Horticulture, grazing livestock and granivores (pig and poultry) contribute the most to agriculture gross value added. This chapter examines trends in agro-food production, consumption, and trade, as well as the policies that most affect this sector. The main drivers and outcomes are presented, with a focus on the evolutions in productivity, input use, and emissions. Sustainability is higher on the agricultural policy agenda, driven by concerns about ammonia and nutrient emissions, issues with water quality and lack of progress in climate change mitigation. The national CAP Strategic plan (CSP) increases emphasis on innovation and environmental sustainability by transferring funds from Pillar 1 to Pillar 2 and emphasising eco-schemes.

This chapter presents the status and trends in environmental quality in the Netherlands with respect to biodiversity, the effects of excess nutrients on the environment, water quality and climate change. It provides a timeline of environmental policy development and considers the current policy landscape with respect to environmental sustainability. Long-term trends generally follow a pattern of substantial improvement in the 1990s tapering off to slow or backward progress in the most recent decade. Agricultural emissions of nutrients and pesticides are an important factor in most cases where water bodies have failed to reach good status. The agricultural sector is currently not on track to meet its 2030 GHG emissions reductions commitments and biodiversity trends are worse on agricultural lands than on other land types. A court ruling on nitrogen deposition on sensitive landscapes accelerated action to address longstanding issues. Substantial spending to reduce related emissions most strongly affects dairy producers and relies on collaboration with regional governments in an “area-based approach”.

The Dutch Agricultural Knowledge and Innovation System (AKIS) is highly developed, with active private sector and public support. The system has successfully brought a high standard of productivity and international competitiveness. The challenge is to use this powerful AKIS to better address environmental pressures. This chapter examines the Dutch AKIS, presenting its main actors, institutions and governance, the sources and flows of its funding, and the interactions between actors, such as via the tripartite “Top Sector” approach. It describes policies in place to facilitate innovation in the agri-food sector including the role of institutions like Wageningen University Research (WUR) and the linkages with education created by the Groenpact initiative. The chapter also assesses how well the skills of Dutch agricultural workers are matched to their roles. In the final section, examples of Dutch initiatives to promote innovation for environmental sustainability are presented.