Pig farm can catch TVL, but start on time

The outgoing cabinet announced last summer that the Reimbursement for Fixed Lasten (TVL) scheme will also be opened for the third quarter. The current price crisis in pig farming, partly caused by the drop in demand due to the corona crisis, probably makes it possible for a large group of pig farms to apply for the allowance. With two weeks to go, it is advisable to start the application on time.

You can apply for TVL since Tuesday, August 31, and until October 26, 17.00:30 p.m. The most important condition to be able to apply for TVL is an expected decrease in turnover of 2019% compared to one of the following reference quarters: the third quarter 2020 or the third quarter 2019. Pig farmers benefited from high pig and piglet prices in the third quarter of 30. Prices are so low in the current period that the turnover for this quarter will indeed be XNUMX% lower for a large number of companies. After the application, documentation must be provided at a later date to indicate the actual decrease in turnover.

Yield prices tens of percentages lower
The current quarter is characterized by low prices for piglets and pigs, especially compared to the level achieved in 2019. For example, the DCA Stock Price 2.0 at the end of September was €0,52 lower than in the same week of 2019: €1,24 against €1,76. That is a minus of 29,5%. The DCA BestPigletPrice is €18,50 lower at the end of September. The current price is €23,50 against €45,50 in the same week in 2019. That is a decrease of almost 50%. Although these figures say nothing about the turnover of specific companies for the entire quarter, it is wise to make an inventory in time whether you may be entitled to a benefit from the TVL scheme.

A number of things are according to Johannes de Boer, business advisor at Accon avm, important. "Entrepreneurs who want to arrange the application themselves should remember that it is now mandatory to log in to RVO with eHerkenning security level 3. Until recently, login means with security level 2+ were sufficient. eHerkenning is becoming the means of communication for more and more government agencies. From 2022. For example, the Tax and Customs Administration works with eHerkenning. Application for level 3 is not arranged within a few days, so start on time", advises De Boer.

He also points to the situation at companies where legal form changes have taken place. "In the first instance, when a legal form changes, it sometimes seems impossible to claim a Fixed Expenses Allowance Q3. In many cases, however, this is possible." Another important point of attention is a statement from your accountant, which is required for TVL applications above €125.000: a so-called accountant product. This statement may also take some time to prepare.

Agricultural subsidy makes substantial support possible
The scheme has also been extended for agricultural companies since the first quarter, says De Boer. Since then, an extra surcharge for agricultural companies has also been incorporated into the TVL schemes. "Entrepreneurs in agriculture and horticulture have to deal with ongoing costs for the care of plants and animals that cannot be easily adapted. The storage for agricultural and horticultural companies must compensate for this. Where the TVL in principle only covers the percentage of fixed costs (20%).

For example, a (pig) company that had a turnover of €2019 in the third quarter of 350.000, but saw it fall back to €210.000 in the third quarter of this year (loss of turnover 40%) can look forward to an amount of €57.400: 41 % of the loss of turnover is compensated.

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