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News Drought 2018

Flanders recognizes drought as an agricultural disaster

26 October 2018 - Anne Jan Doorn - 2 comments

Last summer's drought has been officially recognized as an agricultural disaster in Flanders. The Flemish government decided this on Friday, October 26, reports Minister of Agriculture Joke Schauvliege.

This means that Flemish farmers are eligible for compensation. The drought period refers to the time between June 2 and August 6, when the drought was 'exceptional', according to the Royal Meteorological Institute. 

Based on the 12.000 damage reported by various cities and municipalities, the Flemish government has now given the green light for the recognition as an agricultural disaster, writes the Flemish business newspaper. The time. 

Submit a claim file
Farmers have 3 months to submit a claim file. If this shows that there is a link between damage and drought, compensation of up to €62.400 per affected farmer can be received.

In 2019 and 2020, the Flemish government provides a total of 27,5 million euros for the payment of compensation. The processing of the claims files has been given priority in order to be able to make the payments as quickly as possible. 

Mixed feelings farmers union
The General Farmers Syndicate (ABS) reacted to the recognition with mixed feelings. "A number of people and also customers think that the compensation fully compensates for the damage suffered. Let it be clear, the compensation is desperately needed, but in many cases no more than a blanket for the bleeding."

For the time being, only a percentage of the damage suffered (for 2017 it was 80 %) will be paid out. But for those who don't have weather insurance, which are most farmers, only half of the compensation they are entitled to is paid. This means that a farmer who has lost half his crop to the drought will only receive a compensation of 20%.

Last time disaster compensation
Nevertheless, the ABS is still pleased with the compensation so far. The pain point for the union is the fact that the compensation for crop damage in the current Disaster Fund will be scrapped as of September 1, 2019. For this, a system of broad weather insurance must be replaced by the end of 2019, which farmers can subscribe to, such as that in the Netherlands. is active.

The ABS is not reassured. The broad weather insurance system is not even in its infancy. For ABS it is not acceptable that one system (agricultural disaster fund) is scrapped before the other system has proven its worth.

The Netherlands serves as a (bad) example
In addition, the examples abroad prove that a broad weather insurance only has a chance of success if the premiums are affordable, according to the ABS. The disaster fund should therefore continue to exist for cover in the event of high damage percentages. Uninsurable risks and crops also continue to exist for which an intervention from the agricultural disaster fund is desired.

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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.
Comments
2 comments
Subscriber
Telerx 27 October 2018
This is in response to it Boerenbusiness article:
[url=http://www.boerenbusiness.nl/artikel/10880327/vlaanderen-erkent-drotte-als-agricultural disaster]Flanders recognizes drought as an agricultural disaster[/url]
Doesn't this mean that there is force majeure in the case of contract potatoes?
Subscriber
erik 28 October 2018
Belgian contracts, Belgian conditions
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