Subsidy per grower down due to great interest in BWV

Despite the uncertainty about the amount of the subsidy this year, there is great interest in the broad weather insurance (BWV) among arable farmers. Entrepreneurs who still want to participate in the scheme can indicate this until Monday 15 May at the latest.

Insurer Agriver notes that the interest in broad weather insurance is greater than last year. This is not surprising for director Marien Boersma. 'Last year's debacle with the flooding in June made many growers think. They have started considering what risks they can and cannot take. Applications come in every day, from all over the country. Even from Flevoland: an area where quite a lot of growers have the idea that things are not going so well there.'

Contribution premium unclear
However, there is still a lot of uncertainty about the amount of subsidy available this year. 'In 2016, the government made 9 million euros available for subsidy. Due to the great interest last year, the insurance covered a maximum of 62 percent of the premium, instead of 65 percent. Due to the greatly increased interest in this year, you can feel that the amount needs to be divided among even more participants. If that 9 million does not change, the subsidy will fall below 62 percent. As long as there is no new cabinet, this factor will remain unclear. A pity, because uncertainty is not good for anyone.'

Don't join without a check
However, Boersma does not think that the subsidy on the premium should be the guideline for insurance. 'A subsidy is nice, but let yourself be guided by the risks you run. Map it out first.' For those who are still in doubt, he advises to tick the box when completing the combined statement for the government by Monday 15 May at the latest. A check does not oblige you to take out insurance, but if you don't check it, you will be limited in your options. Then you can no longer participate in the BWV this year.

Insurance tax
Another important point is the insurance tax that growers have to pay. Director Jan Schreuder of Vereinigte Hagel explains: 'In no country is insurance tax high. We are happy with the subsidy from the government and Brussels, but other countries are also making use of this.'

Schreuder also points out that the climate is becoming increasingly extreme. 'That is not due to agriculture, but the crops outside are left with 'the baked pears' if there is damage. The insurance tax amounts to approximately 4 million euros. If the government now guarantees 65 percent reimbursement of the premium and no longer charges insurance tax, the sector would be helped. For example, no insurance tax has to be paid on export credit. That is important for BV Netherlands, but this is important for BV agriculture and, given our strong position, also for the Netherlands.' There would then be a Level Playingfield within Europe.

According to the director, the point should be higher on the agenda of the sector and the new cabinet to be formed.

© 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.