News Drought 2018

LTO follows in call for support due to drought

1 August 2018 - Niels van der Boom - 8 comments

Many advocacy groups, political parties and organizations have already spoken out about the plight of agricultural entrepreneurs. That is why they are now coming up with a package of crisis measures.

According to LTO Nederland, it is the first time that national crisis measures have been proposed due to drought. The package of requirements is divided into two: technical and economic measures.

The measurements
The technical measures consist of 5 points: no further tightening of irrigation prohibitions and regulations, extending the spreading period, more time to sow catch crops, the possibility of tearing grassland and more water intake. The longer spreading of slurry has already been brought forward brought by LTO Nederland and the Producers Organization Pig Farming.

In addition, 4 economic measures have been proposed: some leniency from the potato processing industry, ensuring that the Broad Weather Insurance is made more attractive, a relaxation of tax payments (such as deferral of income tax) and not cutting back on herb-rich grass margins.

Next role
LTO Nederland is thus following the call of other organizations. Jaap van Wenum, foreman of LTO Akkerbouw, already announced at the end of July challenges Boerenbusiness know that it wants to meet with the potato industry if delivery obligations are jeopardized. The Dutch Arable Farming Union (NAV) and VTA also have a position taken† VTA also hopes that 2018 will be seen as a turning point and that potato growers will grow less under contract, on better terms.

Insurance tax is an eyesore

The insurance tax, which is levied on the Broad Weather Insurance, is a thorn in the side of the sector. However, also with the insurers. Jan Schreuder, director of Vereinigte Hagel, calls politicians to take action.

VVD active
From the political point of view, the VVD is active with regard to drought measures. At the end of July, Helma Lodders and Jan Huitema asked questions posed how livestock farming can be helped. Additional questions to the minister will follow on Wednesday 1 August. It points out, among other things, that sowing mandatory green manures is currently of little use. They argue for an exemption from sowing.

CDA members are also busy with the drought problem, member of parliament Jaco Geurts confirms. "The CDA is of the opinion that Schouten must respond quickly to the proposals, including from LTO Nederland. She must seriously consider which measures are appropriate in the short term. You see movements in other European countries. It cannot be the case that the level playing field coming under further pressure."

Lower deductible
In addition to direct measures, the CDA believes that the Broad Weather Insurance should be made more attractive (for example, lower the deductible and remove the insurance intention). "Farmers provide our food, are a relatively small market player and dependent on the weather. That is reason enough to take action," says Geurts.

Employees of the Ministry of Agriculture, Nature and Food Quality (LNV) left Monday 30 July already to Brussels to discuss the situation. The ministry confirms on 1 August that talks about the drought measures are still ongoing. More about this will be announced shortly.

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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
8 comments
Piet 1 August 2018
This is a response to this article:
[url=http://www.boerenbusiness.nl/akkerbouw/artikel/10879475/lto-volgt-in-roep-om-steun-door-driekte][/url]
All nice, but the farmers can't pay the bills for that.
Some kind of financial compensation would be in order.
So make LTO strong otherwise it will cost members I'm afraid.
Agri 1 August 2018
As an LTO, make sure to make the broad weather insurance affordable, starting with the insurance tax.
Subscriber
boer 1 August 2018
It's strange that our Ministry of Agriculture hasn't come up with this already.
a sign that there is no more knowledge there.
you have to ring the bell first, well half of the Netherlands is not a member of LTO and the other half is nice and free.
Become a member first, then you will receive support
sef 1 August 2018
Agri wrote:
As an LTO, make sure to make the broad weather insurance affordable, starting with the insurance tax.

The budget must then be increased. If the BW is made more interesting, the subsidy will decrease in percentage.

So insurance tax just like in other countries low or to zero and budget increase. Doesn't matter at all now.
Subscriber
I want a Mercedes 1 August 2018
I think your best insurance is no contracts. Good thing they didn't tell me that on the entrepreneurship 2.0 course
Tybalt 1 August 2018
As long as we as farmers exhibit frog behavior. Nothing changes. We know we live and work in the land of the lords of the manor. Divide and conquer!
jpk 1 August 2018
This government is very left-wing there are several other people who think that it is their turn first see police with illness absenteeism of 20% see primary education the security people opschiphol and hopeless state in health care so agriculture is the last in the row the minus v finances pay attention to the last euro
Subscriber
nn 2 August 2018
Have not encountered a normal year in 35 years of vegetable farmers. You have to insure yourself very broadly.

Top yields and a worthless balance turned over last year. Then no one stood up to defend my interests. Not interested thick long fries.
Only put three men on the line otherwise we can't process them.

Now bad yields a lot of interest and hopefully a better balance.

Our interest is best served by a regulation that adapts the tax climate to the fluctuations in the harvest. Get back IB from 10 years ago. You have given it to society in the past and now you desperately need it again. I also know of fast growers who depreciate a lot and do not pay tax (contribute nothing to society) who cannot ask for anything in return. I think that's fair..
jpk 3 August 2018
The food package costs in ned 5% of the income. Due to the ongoing drought, the sectors need a 50% increase in the farmyard in the 2018-2019 season
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