Agricultural entrepreneurs receive 446 million aid

Agricultural entrepreneurs have received a total of more than €446 million corona support from the Compensation for Fixed Charges (TVL) and Uncovered fixed costs for agriculture and horticulture (OVK). Some of the applications from the third quarter are still being processed. Both schemes have now ended.

Companies that suffered a loss of turnover of at least 30% could apply for the TVL. In the third quarter of this year, of the 3.846 agricultural entrepreneurs who applied for support, 1.390 have so far received money from the TVL. More than €59 million was paid out to these entrepreneurs. In Q2, more than €200 million in TVL subsidy went to the agricultural sector. A total of €428.615.802 was paid out in the four quarters that agricultural entrepreneurs were able to use the TVL.

The total number of TVL applications almost halved in Q3 compared to Q2, but that is not the case for the agricultural sector. In Q2, 4.239 applications were submitted. Compared to the third quarter, this is therefore only a decrease of more than 9%.

Pig sector
Just under 21% of the aid in Q3 went to pig farms (breeding and propagation farms, fattening pigs and (partly) closed pig farms). That is much more than in the second quarter (7%). In the first quarter this was over 11%. In the fourth quarter of last year (the first quarter that the agricultural sector could apply for TVL), just under 48% of the aid went to the pig sector.

Arable
In the first nine months of 2021, a relatively large amount of TVL money went to arable farming. In the third quarter, for example, 24% went to the cultivation of grains, pulses and oilseeds and more than 15% to the cultivation of potatoes and other root and tuber crops. Dairy farmers accounted for 3% of the TVL and veal calves in Q4.

TVL in the agricultural sector. Source: RVO

OVK subsidy scheme
In the first three quarters of this year, agricultural entrepreneurs who had applied for the maximum TVL and were still unable to pay their fixed costs also had the option of making use of the subsidy scheme Uncovered Fixed Costs for Agriculture and Horticulture (OVK). 31 entrepreneurs have received it in Q3 so far. In total there are now 149 entrepreneurs to whom a collective €17.878.345 has been awarded.

Linda van Eekeres

Linda van Eekeres is co-writing editor-in-chief. She mainly focuses on macro-economic developments and the influence of politics on the agricultural sector.

l.vaneekeres@boerenbusiness. Nl

© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.