LTO

Interview Jaap van Wenum

'At least 700 euros for profitable grain cultivation'

22 January 2019 - Niels van der Boom - 1 reaction

Looking at the balance, grain and protein crops are not very interesting for arable farmers. However, the benefits are great and much needed. The crops contribute to biodiversity, soil fertility and climate. Jaap van Wenum, foreman of LTO Arable Farming, therefore argues for extra support in the future Common Agricultural Policy (CAP).

Van Wenum launched this plan during some regional meetings for arable farmers, in order to hear the opinions of the arable farmers. These are mainly positive, sometimes with a critical note.

Extra support sounds nice, but what exactly are we talking about?
"The cultivation of grains and protein crops is under great pressure (due to the lower balances) in the arable farming plan and in the long term this is also negative for soil fertility. However, cultivation also has major advantages from a 'biodiversity' point of view. "This is the reason for arguing for a higher pay in the new CAP. I am thinking at least €700 per hectare, where it is now €350 per hectare. That is not a heavily substantiated balance calculation, because of course the grain price is important."

How realistic is it that such a surcharge will actually come?
"As LTO Nederland, we sit down with the Ministry of Agriculture, Nature and Food Quality. The ministry is strongly committed to biodiversity and climate. We think this measure fits in well with this. However, the question is what frameworks will be set by Brussels. Some member states advocate for a high fixed company allowance in the first pillar, while the Netherlands would like to see a large flexible framework for greening. The amount of the ultimate reward depends on the freedom that the Netherlands is given."

Isn't it up to an entrepreneur to compose his building plan based on what suits him best?
"You see a decline in soil fertility, especially on rental land. Here, the owners are opting for the short term and financial gain. The agricultural area continues to decline. We have to be careful with the land that remains and pass it on to the next generation. Is rental land being structurally ruined? , then it becomes a sector-wide problem, but at the regional meetings I also hear noises from growers who want to decide for themselves and want to focus on 1 crop with a lot of rental land, instead of a complete construction plan."

Do you think a larger grain acreage also leads to a declining potato and onion acreage?
"I dare not say that. This also depends on the soil type and region. In intensive arable regions on clay perhaps, but on sandy soil the maize acreage is more likely to be cut. Plans are also being put forward for a mandatory '1 in 4 cultivation plan' for potatoes. I am not in favor of locking down the cultivation plan, but you have to make it attractive. You can do this through the fertilizer policy: by being allowed to use more organic fertilizer, crop derogation or higher standards in grain cultivation."

Less maize, your livestock farming colleagues probably wouldn't be happy about that?
"In Noord-Brabant, for example, the area of ​​grassland has been reduced and replaced with maize. Grass is also a rest crop with many benefits. Another example could be sorghum, which is still in its infancy. How high the compensation per crop should be, is still unknown. One option we are considering is a points system that assesses each crop."

"Grain and protein crops do fit well in a cycle system, but I personally see that cycle on a larger scale (Europe-wide). It means that we are less dependent on soy imports from America. That means we are not yet at the national level, but we'll bring him close to home."

A fee for growing a crop. Sounds a bit like McSharry 2.0?
"It certainly isn't, although the 'McSharry premium' did have good points. However, the premium caused an explosion in the maize acreage, mainly due to a mistake in the rules. The CAP consists of a fixed part (the hectare compensation ) and a variable part (greening). The Netherlands wants a maximum budget for greening, while Brussels will stick to the fixed hectare premium. Everything stands or falls with the variable part. When a compensation of €50 per hectare is ultimately offered , that's simply too little."

How does LTO Arable Farming envision the future CAP?
"We see it as a menu. You have a fixed main course, with all kinds of options around it: greening. A company in the Oldambt already grows a lot of grain and it does not have to deal with catch crops. An arable farmer with many different crops can Choosing the right catch crops and field margins provides freedom of choice, which can benefit everyone."

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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.
Comments
1 reaction
jpk 25 January 2019
This is in response to it Boerenbusiness article:
[url=http://www.boerenbusiness.nl/akkerbouw/ artikel/10881106/minimaal-700-euro-voor-rendabele-graanteelt]'A minimum of 700 euros for profitable grain cultivation'[/url]
Subsidy is unnecessary if the government implementer silences the ACM for open crops
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