An aerial picture of a submerged area near Roosteren, the Netherlands, after the Meuse river burst its banks. Heavy rainfall has led to floods in various parts of the Netherlands and central Europe. EPA
An aerial picture of a submerged area near Roosteren, the Netherlands, after the Meuse river burst its banks. Heavy rainfall has led to floods in various parts of the Netherlands and central Europe. EPA
An aerial picture of a submerged area near Roosteren, the Netherlands, after the Meuse river burst its banks. Heavy rainfall has led to floods in various parts of the Netherlands and central Europe. EPA
An aerial picture of a submerged area near Roosteren, the Netherlands, after the Meuse river burst its banks. Heavy rainfall has led to floods in various parts of the Netherlands and central Europe. E

Dutch farmers revisit ancient techniques as they adapt to climate change


Sunniva Rose
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In the flat agricultural plains of the southern Brabant province of the Netherlands, a handful of farms catch the eye.

Eight cattle barns and houses stand six metres above potato fields and grasslands. The land around them, locally known as a polder, has been reclaimed from the river.

Living on artificial mounds to avoid floods is a thousand-year-old technique that had stopped being used in the Netherlands when it started building dykes on a large scale roughly 1000 years ago.

Today, with climate change and recurring extreme weather events, moving to higher ground has become a popular concept.

“We can still learn from the past,” said Barend Pilgrim, spokesman at the water authority of the Brabant Delta region.

But as the Dutch government and a part of the public bicker over how to lower harmful emissions to respect the EU’s goal to become carbon neutral by 2050, scientists said the Netherlands would have to do more if it hopes to survive in its current form in the coming centuries.

The country’s highly productive farming sector is at a crossroads and decisions made in the coming years will affect generations to come.

In Overdiepse Polder, cattle raiser Nol Hooijmaijers, 72, has witnessed first hand the government’s attempts to adapt to climate change.

Mr Hooijmaijers was one of eight farmers who decided to stay when the Dutch state chose the area, which was hit by two devastating floods in the 1990s, to make up part of a nationwide project called “Room for the River”. Ten other farmers decided to move elsewhere or stop farming altogether.

The project in Overdiepse Polder aims to preserve the lives of hundreds of thousands of city dwellers living upstream by opening flat farmland for the river to flood.

Most of the polder's trees were uprooted. Grass and crops must be kept at a height no more than 30 centimetres tall during the winter - when floods are expected - for the river to spill over freely.

A heavily subsidised move

Despite being generously compensated by the state, farmers who stayed had to accept a change in lifestyle.

Their old low-lying farms were demolished and they then built new houses on top of artificial mounds, paid for and designed by the government to last for 100 years.

In the case of a flood, they will be warned in advance and will be compensated for lost crops.

Farmers who chose to leave also received compensation for their old farms.

As Mr Hooijmaijers watched the canal that is several hundred metres away, he said he would like to see the polder covered with water once in his life, “to have proof that it was all worth it”.

Farmer Nol Hooijmaijers. Sunniva Rose / The National
Farmer Nol Hooijmaijers. Sunniva Rose / The National

He believes that his new farm, which was built on land owned by his grandfather and currently houses 120 dairy cows and 60 calves, is there to last.

“The elevated mound is so high that the water will never reach it,” he said.

Decisions that will affect how humans live in the next century will be defined by the level of emissions over the next 10 or 20 years.
Maarten Kleinhans,
professor of geosciences at Utrecht University

It is important to remember that the €80 million ($78.2m) project was completed to save lives and billions of euros in potential damage upstream in densely populated areas, not for the benefit of a limited number of farmers, said Simon Hofstra, project manager at the water authority of the Brabant Delta region.

“We realised that we had claimed too much land near the rivers for urban and agricultural use,” he told The National. "Rivers didn't have enough space anymore in times of high water."

But the farmers' move in Overdiepse Polder, which took over a decade, was also possible because the population the farms were relatively new — none had been built before 1970, said Mr Hofstra.

“All the farms were the same age. There was no great history," he said.

"On the other hand, the farmers knew that inevitable future modernisation would entail scaling up the farms. That was only possible if some farmers left the polder, and the project gave them this opportunity," he added.

Mr Hooijmaijers prefers the new farm to the old one and has handed over management to his son.

“We were able to start from scratch, and we now have a new farm with all the latest technologies,” he said.

The Overdiepse Polder project, which has attracted significant media attention in the past years, has been branded as representing successful co-operation between farmers and the government to protect the region’s population from climate change.

It reflects widespread pride in Dutch water-management techniques, technological know-how and efficient farming.

The Netherlands is the second-largest agricultural exporter in the world after the US.

But scientists warn that looks can be deceiving. Holland’s 900-year-old water management techniques, which involve pumping out or draining water from the land, are also the cause of soil subsidence, or the lowering of the level of the land relative to the sea.

Imported nitrogen-rich livestock feed

It remains unclear how long the Netherlands can fight climate change with ingenuity.

Some believe the country needs to entirely rethink its economic model of intensive farming, which is based largely on importing nitrogen-rich livestock feed from abroad, mostly from South America, for cattle that are then slaughtered for export.

Calves at Nol Hooijmaijers's farm. Sunniva Rose / The National
Calves at Nol Hooijmaijers's farm. Sunniva Rose / The National

The nitrogen remains trapped in manure, pollutes the air, rivers and soil, and contributes to high levels of emissions that warm the planet and hasten the melting of polar ice caps.

Should sea levels rise by more than two metres, it will be very hard to protect the lower half of the Netherlands against floods from the sea and rivers, warned Maarten Kleinhans, professor of geosciences at Utrecht University.

“Decisions that will affect how humans live in the next century will be defined by the level of emissions over the next 10 or 20 years. That is why scientists keep using the words 'tipping point'. Then you can build all kinds of mounds for houses but it is not going to help,” he said.

“Nitrogen is only one example of all the stuff that goes into the atmosphere and groundwater, and is really a serious problem that shows how hard it is to accomplish serious change.”

Others said innovation is the way forward and that food production should not be cut.

Dutch farmers should not be blamed for years of bad government policies, said Sieta van Keimpema, board member and representative of the Farmers Defence Force, which was active in widespread protests this summer against the government.

The backlash, which involved farmers dumping manure and trash on motorways this summer, was aimed at the state’s decision to halve nitrogen and ammonia emissions by 2030.

That would mean a 30 per cent reduction in Dutch livestock.

Ms Keimpema believes that the government wants farms to close so that it can build more houses for the country's growing population.

“You can build a lot of houses and cut down agriculture but that doesn’t make you more sustainable,” she said.

There are other important polluters, she highlighted, such as cars, aviation and industry, which have not been asked to slash emissions in the same way as farmers have.

A model that needs changing

Agriculture experts such as Simon Oosting, professor and chairman of animal production systems at Wageningen University, believe that a different, more sustainable, agriculture is possible for Dutch farmers.

But such a transition requires government support that is currently lacking.

“If a farmer wants a loan at a bank, there is way more chance he will get it if it is to make his farm three times bigger than if he wants to convert to organic agriculture,” said Mr Oosting. “That is because support goes towards intensification.”

“Everybody realises that things can’t go on like they are,” he said. “Waiting another 10 years will only make things worse.”

The government appointed a mediator, Johan Remkes, who last month suggested in a report that the state buy out 600 of the country’s most polluting industries, including in the agriculture sector.

Mr Oosting fears it could end up in a deadlock.

Overdiepse Polder in the Netherlands, where farms have been destroyed and rebuilt six metres above sea level. Sunniva Rose / The National
Overdiepse Polder in the Netherlands, where farms have been destroyed and rebuilt six metres above sea level. Sunniva Rose / The National

The debate is of major concern for farmers all over the country, including in Overdiepse Polder.

Mr Hooijmaijers said the government’s emission-reduction aims were “impossible” and “ridiculous”.

But he also believes that he will inevitably have to reduce his number of cows and is making efforts at making his farm circular.

This means that eventually animals should be fed from his own land without having to import animal feed, with the number of animals also mechanically reduced.

Circular farming is gaining momentum across the country, said Mr Oosting. Combined with the current energy crisis, he hopes pressure to lower emissions will help Dutch agriculture to become less intensive.

“It would mean we would export less, but we would have lower internal costs,” he said. “It is quite a transition. What is hard is to get over the threshold.”

Mr Kleinhans, from Utrecht University, agreed.

The efficiency of Dutch farmers in producing cheap meat for export, with government encouragement, has been poisoning the environment for decades.

“If, at some point, you really want to be serious about mitigating climate change, we need to stop all this transportation. We need to stop the overconsumption of meat and flying ourselves all over the place,” he said.

“If we ignore that problem, then we contribute to this progression towards these tipping points that will eventually lead to the complete drowning of the lower half of the country.”

The issue is that no one wants to be told to stop eating cheap meat, said Mr Kleinhans.

Farmers should ultimately blame the Dutch public that voted for politicians who encouraged intensive farmers to expand, not the current government that decided to enforce European legislation.

“Voters have been voting for parties that didn’t want to change anything, and now we are getting the sum of all the issues. That is the real problem,” said Mr Kleinhans.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Starring: Janhvi Kapoor, Ishaan Khattar, Ashutosh Rana

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Updated: November 05, 2022, 9:50 AM