The European Commission has approved two Dutch plans worth a combined 1.47 billion euros ($2.2 billion Cdn) to buy out livestock farmers to reduce nitrogen pollution.
The Dutch need to reduce excess nitrogen levels because its courts are blocking important construction projects until the issue is resolved.
Farmers punished Prime Minister Mark Rutte’s candidates in the March regional elections over the pollution issue.
Farm buyouts are seen as an important step toward a comprehensive plan to address pollution.
In the schemes approved by the European Union's executive body on Tuesday, the Netherlands reserved the money to compensate farmers who voluntarily close farms located near nature reserves.
Canada has benefitted from pollution-related regulations that have prompted farmers to move to Canada, usually to set up dairy or poultry farms.
In some cases, selling manure quota in the Netherlands helped to cover the cost of buying dairy or poultry quota in Canada.