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News Corona crisis

TVL extension, but no more agricultural storage

15 December 2021 - Stef Wissink

The outgoing cabinet has decided to maintain, among other things, the Allowance for Fixed Lasten (TVL) scheme, because entrepreneurs will be affected by the extension of the corona measures until January 14. However, the agricultural storage that was part of the TVL and was scrapped this quarter does not seem to be returning for the time being.

The above means that companies can also apply for a compensation in the first quarter of 2022 if they have a loss of turnover of more than 30%. The conditions for the scheme are also the same as those in the fourth quarter of this year, the Netherlands Enterprise Agency (Rijksdienst voor Ondernemend Nederland) reports (RVO.nl).

Fourth quarter agricultural aid stripped down
The Fixed Charges Allowance for agricultural and horticultural companies has been cut back considerably in the fourth quarter. The extra surcharge for agricultural companies was canceled in the fourth quarter.

LTO Nederland and the Producers Organization Pig Farming (POV) have already called on the cabinet to extend storage, because many costs for companies in the agricultural sector continue as usual: feed, care and crop protection. "The natural processes cannot simply be stopped, which is possible with a machine," says LTO on its website.

Lobby still unsuccessful
Inquiries with POV director Theo Duteweerd shows that recent efforts have been made to keep agricultural storage in the TVL scheme. "In addition to the decrease in turnover in pig farming, we are also dealing with very sharply increased costs. Especially now, agricultural storage is the tool to ease the pain for entrepreneurs. It is not entirely clear to us which arguments are underlying the deletion of However, it seems that the ministry is keeping the TVL scheme as simple as possible, without fuss."

Duteweerd notes that the ministry has raised the state aid limit of €225.000 and that the Subsidy for uncovered fixed costs for agriculture and horticulture has been added for entrepreneurs who also reach that new ceiling.

Since RVO indicates that the scheme will be set up in the same way in the first quarter of next year, the POV director does not consider the chance that agricultural storage will return in the first quarter of 2022 is great for the time being. LTO for will continue to harden.

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Steve Wissink

Stef Wissink is an editor at Boerenbusiness and writes about current market developments in the dairy and pig market. He also follows Dutch and international agribusiness.

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