Interview John Schreuder
'Politics must meet farmers'
"What we are experiencing now is extreme. With 14 dry days ahead, the drought is getting serious", Jan Schreuder, director of Vereinigte Hagel, realizes. Farmers can arm themselves with Broad Weather Insurance, but only 10% make use of it. "Politics must now meet the farmer," Schreuder calls out.
"Drought claims are pouring in", so Koppen various national media in response to a report from the ANP news agency. This includes Jan Schreuder, director of agricultural insurance specialist Vereinigte Hagel. Now that the damage threshold of 250 millimeters of precipitation deficit at Vereinigte Hagel is being reached in more and more places, damage reports are pouring in.
How many drought damage reports have you received?
"At the moment there are several dozen reports of damage in, among other things, potatoes, onions and sugar beets. Now that the map with the ongoing precipitation deficit is turning brown in more and more places, the damage threshold of 250 millimeters has been reached. 270 millimeters. Every company has its own threshold."
The situation is compared with the year 1976, when the government jumped into the breach. Can that happen again?
"The drought is now worse than in 1976. The crops are aging quickly, especially with the upcoming heat. About 42 years ago, the government reimbursed drought damage on basis of the Disaster Compensation Act (WTS scheme). I don't see that happening this year. It only counts as a dike breach in extreme cases. The government argues that if the weather risk is insurable, it will not help."
You can take out Broad Weather Insurance. Yet relatively little use is made of this. Why?
"What stings farmers and cooperatives is the insurance tax. In the past, the risk of weather extremes lay with the government, but now it lies with the sector itself. Fine, but don't increase the insurance tax twice. The rest of Europe has an exemption for the insurance tax. "It must be taken into account that extreme weather conditions are becoming more frequent. This spring the potatoes in a number of regions were sometimes planted twice. The flooding in the Southeast Netherlands (2) is still fresh in our minds. Whether these extremes are due to are subject to climate change, I will leave it open for a moment. In practice, we have to deal with this more and more often."
However, the government reimburses a maximum of 65% of the premium. Is that not enough?
"The insurance tax (21%) is levied on the gross premium. As an entrepreneur, you cannot use this as a deductible item. It is deducted from the profit. The total insurance tax on Brede Weerverzekeringen yields €4 million annually. A relatively small amount , but an exemption helps the agricultural sector enormously."
Is it realistic to think that the extreme 2018 will change this?
"Organizations like LTO Netherlands en NAV want to contribute. Now it's up to politics. When the budget meeting is held in November, action must be taken beforehand. That is why we call on politicians to take action now. This is the only way more growers will take out Broad Weather Insurance. In addition to drought, the insurance also arms you against 8 other weather extremes (such as excessive precipitation, hail, storm, frost and erosion). It is an 'all risk' insurance."
Vereinigte Hagel originates from Germany. How is the situation there?
"Especially in the northeast, there are areas with damage to grain and rapeseed. The country has a federal system in which each state has its own system regarding crop insurance. Direct payments have the priority there. In Poland, support for farmers is also being considered. Within the European Union, there are different views per country on ways to help growers. We argue for a structural solution. The Dutch system is fundamentally good. It forces the agricultural entrepreneur to map out his risks. However, maximum support from the government is required. This costs relatively little money, but yields a lot for farmers. We are always open to providing information and supporting farmers as much as possible."
Photo: Joef Sleegers/Vakblad voor de Bloemisterij
Niels van der Boom
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