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Arable farming and livestock farming: regulations hindering cooperation

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March 27, 2025

Effective collaboration between arable farmers and livestock farmers can contribute to circular agriculture and environmental goals such as improving biodiversity. For example, by exchanging land between arable farmers and livestock farmers. However, putting this into practice is challenging, says Femke Meulman, researcher in Transition and Innovation: "Agricultural entrepreneurs experience that much legislation and regulation is aimed at individual and sectoral business operations, with a focus on maximising short-term profits. This often stands in the way of cooperation." What needs to be done to remove these obstacles?

Together with colleagues from Wageningen Social & Economic Research and the Animal Production Systems chair group, Meulman worked on a report on the social aspects of collaboration between agricultural businesses. "Circular agriculture ensures a more sustainable and future-proof food system. By working together smartly, arable farmers and livestock farmers can contribute to this by closing local cycles, improving soil health, and better withstanding external factors. This study shows how collaborations are organised in different regions, what is needed to facilitate cooperation, and which obstacles need to be overcome."

Success factors of cooperation

Meulman and her colleagues interviewed 23 farmers and advisors involved in five pilot cooperation projects within the PAVEx project. "We examined what motivates entrepreneurs to collaborate, what benefits they gain from cooperation, and what challenges they face in doing so." The participants collaborated with various goals in mind, such as improving crop rotation and soil quality, achieving economic benefits, or complying with environmental regulations and land-based requirements.

The study reveals that social aspects play a crucial role in the success of collaborations. One contributing factor is that collaborating farmers experience tackling problems together. This stimulates their collective ingenuity and strengthens their resilience against the challenges they face. Other success factors include physical and social proximity and a fair distribution of costs and benefits. How such collaborations are structured varies by region. Some entrepreneurs prefer to formalise agreements in contracts, while others rely entirely on mutual trust. Each region has its own approach, meaning collaborations cannot be imposed through a fixed blueprint.

Policy and economic risks hindering cooperation

Despite the clear advantages, entrepreneurs also encounter obstacles. Legislation and regulations were the most frequently mentioned issues by interviewees, as they feel these limit collaboration. The rules for arable and livestock farming, for example, do not align well, making it difficult to develop joint plans. Another issue is that government administrative systems do not support cooperation, increasing the risk of errors, additional costs, and missed subsidies.

What needs to be done?

The report highlights that cooperation between arable and livestock farming could be facilitated if policies actively support cross-sector initiatives rather than obstruct them. This requires legislation and subsidies that better fit mixed business models. Collaborations are inherently focused on long-term sustainability. However, farmers experience that current legislation and regulations place too much emphasis on short-term profit, making it difficult to implement strategies and investments that contribute to sustainability in the long run. There is also a need for more flexible regulations, allowing farmers to make local cooperation agreements without unnecessary administrative barriers.

For instance, it should be made easier for dairy farmers to exchange manure with arable farmers. The craftsmanship and entrepreneurship of agricultural entrepreneurs and the collective ingenuity of partnerships could be better recognised if more tailor-made solutions were allowed. Each partnership could then determine how to meet environmental goals while maintaining its own cooperation model.

"With these adjustments, agricultural entrepreneurs can collaborate more effectively and contribute to a more sustainable circular food system," says Meulman.