Flanders almost has Broad Weather Insurance

A proposal for the introduction of weather insurance in Flanders has been adopted by the competent committee of the Flemish Parliament. This means that the proposal can now be put to the vote in the Flemish Parliament. However, it is expected that this is only a formality.

The Flemish Parliament will vote on the proposal in the next 2 weeks, after which a decision must be made on the concrete implementation of this. It also means that the weather insurance can be set up before the summer.

With a Broad Weather Insurance, 65% of the policy costs for the insurance are reimbursed by the government. The risks that cannot be insured will continue to be covered by the Flemish Disaster Fund for the time being. This is the successor to the Agricultural Disaster Fund and the General Disaster Fund. 

Responsibility of the entrepreneur
Previously became already written that the Disaster Fund in its current form would disappear. Until now, Flemish farmers could call on the Disaster Fund/Agricultural Disaster Fund in the event of a natural disaster. Both will now be incorporated into the Flemish Disaster Fund, which will remain in force until 2020. After 2020, however, it will be up to the agricultural entrepreneurs themselves to insure themselves against the consequences of extreme weather; there is a transition period of 5 years (until 2024) and in the meantime their damage remains covered by the Disaster Fund.

During this transitional period, the damage as a result of a natural disaster will be partially compensated by the government; provided that the entrepreneurs have insured at least 25% of the acreage by means of a Broad Weather Insurance. The share of the area that the agricultural entrepreneur has insured also determines the compensation for the area that is not insured.

Less broad coverage
On the other hand, not all noses in Flanders are in the same direction. The political party 'Green' continues to argue, because according to them the Disaster Fund has broader coverage than the insurance. "Only 10% is insured in France, the Netherlands and Germany, which means that 90% is not insured. This may be due to unfavorable policy conditions or the high costs," Bart Caron, a Flemish MP for Groen, reported. agriculturallife.be.

Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.

aj.doorn@boerenbusiness. Nl

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