Background information

The oil price shock following the closure of the Strait of Hormuz from late February 2026 placed the Dutch agricultural and horticultural sector under significant financial pressure. Energy and fertiliser, particularly nitrogen-based fertilisers, whose production is energy-intensive, are essential inputs for Dutch agriculture, and both saw sharp price increases. LTO Nederland, the main agricultural employer organisation, warned that energy, fertiliser and diesel are indispensable for food production, and that when these costs rise rapidly and cannot be passed on through the supply chain, profit margins come under severe pressure. LTO chair Ger Koopmans stated that this was "not sustainable in the long term" and affects not only the primary sector but the entire food chain and ultimately the consumer. Prior to the announcement of the April 2026 package, LTO had called on the cabinet and parliament to introduce excise duty exemptions for agriculture and horticulture, expressing concern that initial government plans appeared to have overlooked the agricultural sector.

Content of measure

The cabinet made €25 million available in 2026 to reduce the dependence of the agriculture and horticulture sector on energy and fertiliser. The specific implementation routes are still being elaborated; the government indicated it will investigate which existing schemes are best suited to channel the support. One option under consideration is the fertiliser substitute Renure, a nitrogen fertiliser derived from processed manure, which could reduce dependence on synthetic fertilisers. The €25 million is drawn from the LVVN budget for undivided and uncommitted resources for wage and price adjustments in 2026. The responsible ministry is the Ministry of Agriculture, Fisheries, Food Security and Nature (LVVN).

Use of measure

No uptake data available at time of entry.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Sector specific set of companies	Does not apply to citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement	No involvement
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: N/A

Involvement

No formal involvement reported at time of announcement. The specific implementation routes were to be worked out by the ministry; no consultation process had been confirmed.

Views and reactions

LTO thematic coordinator Alie Dijkstra welcomed the €25 million but questioned whether it represented genuinely new funding, or a reallocation from existing LVVN budgets. LTO Akkerbouw chair Tineke de Vries acknowledged that looking at alternatives to fertiliser was welcome, "but the arable sector cannot benefit from this in the short term." She noted that reducing chemical inputs often means more tractor hours and therefore more fuel use, and that electrification of tractors "is still in its infancy." The measure was therefore characterised by LTO as addressing longer-term structural dependence rather than providing immediate cost relief.

Sectors and occupations

This case is not occupation-specific.

Sources

• 16 April 2026: Oplopende brandstofkosten in de agrarische sector zet betaalbaarheid van voedsel onder druk (www.lto.nl)
• 20 April 2026: Kabinet maakt bijna een miljard vrij voor economische impact Midden-Oosten (www.rijksoverheid.nl)
• 20 April 2026: Plan kabinet: maatregelen om gevolgen hoge energieprijzen te beperken (www.rijksoverheid.nl)