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Harvest failure

Compensation can be given to enterprises who suffer significant crop failure caused by climatic conditions. In particular the compensation scheme aims at climatic conditions which are impossible to be insured against by means of regular insurance schemes.

Compensations depend on swift reporting

As soon as possible and before applying for compensation, the damage in question must be reported to your municipality. In legal terms and in this context, “as soon as possible” means immediately. An unreported damage is not compensated. The intention of the strict deadline is for the municipality to appraise the damage in the actual timeframe when the damage occurred.

The deadline for applying for compensation for harvest failure is 31st of October in the year the damage occurred.

It is possible to apply online through the Altinn  - portal (See electronic services).

More information about the compensation scheme can be obtained through the agricultural office in your municipality and with the county administration.

  • How to apply online

    Electronic applications can be handed in through the “Altinn” portal.

    Use a MinID or BankID to log on. The electronic form has a “help” section.

    Upon completing the electronic form, press “send inn”, and your application is automatically delivered to your municipality. The software will, on your request provide you with a receipt, sent to your e-mail address. A receipt gives added security in the case you need to document that the application was sent before the deadline.

    You also have the option to go to “ditt jordbruksforetak” in Altinn to track the status of your application.

    Your municipality will also happily help you with the electronic application!

  • Calculating financial loss from harvest failure

    Climatic conditions are: Winter damage, difficult growth- and harvesting conditions such as drought, heavy rain, and frost.

    - Damages caused due to disease, vermin, weeds, is not covered by this compensation scheme.

    - Quality loss is compensatory, with the exception of fruit and berries.

    Harvest failure is defined as failure in crop amount, seen in relation to the average harvest for the plant cluster group. The harvest in the year the damage occurred must be less than 70 per cent of the plant’s average annual harvest in order for the damage to be considered compensatory. The annual average harvest is normally estimated by calculating the annual average harvested during a five years’ time frame.

    Planted groups:

    Cereal

    Roughage /coarse fodder

    Fruits

    Berries

    Potatoes

    Vegetable crops

    Lost harvests (measured in kilo grams) are replaced by standardized national rates for each group. Rates go into the calculations done by the county administration based on standardized formulas for calculation. The maximum compensation per plant group is limited upwards to 750.000,- NOK. Calculated compensations below the amount of 5.000,- NOK are not reimbursed.

     

  • Mandatory damage mitigation

    The enterprise is obliged to undertake damage mitigating measures

    For climatic damages to be considered compensatory, basic agronomic principles must have been adhered to. Among other factors, this includes:

    - Species and type of plant must be adapted to the reigning climate

    - The harvesting area must have sufficient drainage facilities

    - The crop must be harvested

    Note: The consequence of not harvesting the affected area is that the damage is not compensated. Exceptions to the rule crop harvesting can be made when;

    - Harvesting conditions are extraordinary difficult

    - The cost of harvesting exceeds the value of the crop

    - The producer does not want to harvest the crop as it is considered of poor or low quality.

    For the above mentioned exception to be made, the municipality or the county administration following a control of the premises, must be able to certify that conditions are met for an exception to the rule. Upon inspection, the damaged harvest will be appraised for subsequent addition into the overall compensation.

    The possibilities for harvesting the crop must be utilised even in difficult conditions.

    Only the de facto lost amount is considered compensatory. With exceptions for certain climatic damages to fruit and berry crops, as a rule, loss in terms of quality is not considered compensatory damages.

  • Questions and answers

    I connection with applying for agricultural compensation in areas with heavy rain, or flooding a number of questions can be asked.

    1 Who is eligible for applying for compensation for harvest failure?

    If you own a harvest- or a gardening enterprise and you are entitled to grants related to production, you can apply for climatic damage compensation.

    2 What is covered in the case of harvest failure?

    Significant harvest failure brought on by climatic conditions which are considered non-insurable by means of regular insurance schemes, are considered compensatory damages.

    3 Is the financial loss compensated in full?

    No, the loss is calculated by using a method where, first, the average annual production in the recent past five years (recent past three years in the cases of grass for livestock fodder production) is calculated. Thirty per cent – an indicator of normal risk in this sector – is then subtracted from that average. The difference between your actual production in the year where the harvest failed and the number above is what is considered the compensatory loss.

    4 Are there other conditions that need to be met in order to receive compensation?

    Yes, the damage must be reported as soon as possible to your municipality. Another condition for receiving compensation is that you have done what you can to limit the damage – among other things that the affected area has been sowed following the climatic damages.

    5 What is the deadline for applying for compensation?

    An application for compensation must be forwarded to the municipality no later than 31st of October in the year the harvest Failure occurred. The deadline must be adhered to even if one is unable to fully estimate the amount of damages.

    6 What does it mean when an enterprise has an obligation to limit the damage?

    Only damages done to crop – actually still in the soil are compensatory. Enterprises who suffer harvest failure have a legal obligation to initiate measures aimed at minimizing damages to their crop. In reality, this entails sowing other and different plants. In areas where spring work is completed and where there is a need of redoing spring work due to flood or rain, an additional condition is that a second and different plant is sowed.

    Harvest failure occurring after that a second type of plant has been sowed, is included in the compensation scheme. Any eventual alternative harvest will subsequently be included in the overall calculation and will contribute to harvest failure loss reduction.

    7 Natural damages and the natural damage assistance scheme

    In cases where a natural damage has caused damage to crop and there is a need for redoing the spring work and sowing, the expenses for “re-sowing” may be considered compensatory and the loss is covered by the Norwegian National Fund for Natural Damage Assistance. The tenant is legally considered an eligible claimant in cases where damages are limited to re-doing spring work and sowing. If damages have been inflicted on the ground itself, the land owner is the claimant in the legal sense. See //LINK// the section(s) on natural damages for further information. //LINK//

    The compensation scheme for harvest failure damages is legislated in by-law: (NO) forskrift om erstatning og tilskudd ved klimabetingede skader i plante- og honningproduksjon av 17.01.2012 nr 56 og forskrift om satser for og beregning av erstatning og tilskudd ved klimabetingede skader i plante- og honningproduksjon av 20.01.2012 nr 83.