The Czech government approves 2 bln crowns compensation for farmers

The Government of Andrei Babis abolished some of the provisions of the former government. The Ministry of Agriculture then stated that it was only technical matters and that it would re-submit the material on compensation.

The government will provide farmers with two billion crowns as compensation for last year's drought. Richard Brabec, Deputy Prime Minister, told the news conference today after the meeting. According to the material, at the same time, they would have to compensate for spring frosts for 208 million crowns of fruit growers and forest nurseries. According to the Ministry of Agriculture, farmers will also receive 141 million crowns for irrigation.

"Compensation is only a significantly smaller proportion of the total damage estimated last year to more than 12 billion crowns," Brabec said. The damage last year amounted to CZK 7.7 billion, most affected by cereals, oilseeds, permanent grassland, and maize. In potatoes and diabetes, the loss was up to five billion crowns.

According to the Minister of Agriculture, one billion crowns from the government budget reserve will be used, some of the money being found in the savings of other ministries. The Ministry of Agriculture itself will release 215 million crowns for compensation, and will also pay the money for compensation for frost.

"From the beginning, we claimed that the damage to the enterprises is bigger than the government has approved in the past," said spokesman of the Agrarian Chamber of the Czech Republic Jiří Felčárek. According to him, the chamber respects the government's decision. The material itself was completed with the support of the Chamber, which tried to calculate the damage as accurately as possible - to the level of individual cadastres.

Farmers will have to show that drought has destroyed at least 30 percent of their average annual production, but the amount of aid will not exceed 80 percent of the damage. In addition, it must provide proof of insurance for at least half the area of the crop or half of the farm's acreage. If it does not, the compensation is reduced by half.

A similar document has already been approved by the previous Cabinet of Bohuslav Sobotka (CSSD). The Government of Andrei Babis abolished some of the provisions of the former government. The Ministry of Agriculture then stated that it was only technical matters and that it would re-submit the material on compensation. Brabec reminded that the government has today fulfilled the commitment promised by previous Agriculture Minister Marian Jurek (KDU-CSL).

As previously stated by the ministry, farmers will be able to claim last year's drought compensation in the second half of June. The term will be common for both feed and market crops. "Due to the differing impacts of last year's drought on individual cadastres, a system should be prepared to take into account impacts on businesses, taking into account the significant regional impacts of drought, and therefore the demand for feed and market crops will be realized between 18 and 28 June," the office said.

Money should be redeemed in the autumn. "The deadline for the disbursement of funds will depend, among other things, on the number of applications received," he added.

The frosts damaged the fruit and the pre-season when the damage was around 400 million crowns. The annual value of the fruit harvested by Czech sappers is about 1.5 billion crowns in the average year.

In order for the government not to approve compensation every year, the ministry is preparing a so-called "heavily insurable risk fund" that should address the situation systematically. The previous government was preparing it, Milek said in March that it would present it at least once a year at the Cabinet meeting.