It is possible to invoke force majeure in GLB

Companies that are unable to meet the requirements of the Common Agricultural Policy (CAP) due to the drought can invoke force majeure. This is reported by the Netherlands Enterprise Agency (RVO.nl). A damage threshold of 250 or 300 millimeters of precipitation deficit applies for this.

When entrepreneurs cannot meet the conditions for the payment of payment entitlements, greening payment, extra payment for young farmers, grazing livestock or agricultural nature management, they may be eligible for an invocation of force majeure, such as reports RVO.nl this week.

Threshold per soil type
RVO.nl. looks at the precipitation deficit per region. The KNMI data is used for this. For sandy and loess soils, the damage threshold is 250 millimeters of precipitation deficit. For the other soil types, that is 300 millimeters. This concerns the shortfall from 1 April 2019. Each application is assessed separately by the Central Government Agency. In addition, other circumstances at the company are also considered.

Entrepreneurs can also request a statement with which a bridging loan can be requested from the bank. Drought measures for spreading slurry, such as in 2018, will not be implemented now handled† The manure legislation has already been adapted to this.

Eastern Netherlands eligible
The national average precipitation deficit stands at 180 millimeters. Due to the recent rainfall and the forecasts, this will probably decrease to about 160 millimeters. Regionally, however, the picture is much more diverse. In Twente and the Achterhoek it is precipitation deficit 270 and 240 millimeters. Given the type of soil, companies in this area are eligible for an invocation of force majeure.

Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.

n.vanderboom@boerenbusiness. Nl

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