The case in summary: Elstøen Gartneri, one of Norway’s largest vegetable producers, suffered major losses after extreme weather in 2023, with an estimated loss of at least NOK 35 million. The state compensation scheme only covers NOK 1.8 million of the loss, which has led to the farm having to sell property to cover costs. Averøen Gård, which mainly grows grain and potatoes, also experienced large losses due to the extreme weather, with a loss of NOK 5 million on the potatoes. Agriculture and Food Minister Geir Pollestad encourages large food producers to take out insurance, but there is no insurance that can cover the loss of large crops. The Norwegian Farmers’ Association believes that better compensation schemes are crucial to achieving the government’s goal of increasing the degree of self-sufficiency in Norway from 40 per cent to approx. 50 percent in the coming years. The summary is made by an AI service from OpenAi. The content is quality assured by news’s journalists before publication. – Large parts of the crop were 100 per cent lost, says Gjermund Kristoffersen. He is the fifth generation driver and general manager at Elstøen Gartneri in Røyse in Hole. The summer this year was initially dry. Later came the extreme weather “Hans” which drowned almost his entire crop. He lost at least NOK 35 million on that. He fears that there is even more, because he has not yet gained a complete overview. – When we see the size of the loss, we are unsure how it will go. There are big costs we have to bear. The fennel drowned in water during the extreme weather “Hans”. Photo: Gjermund Kristoffersen / private Even many days after the extreme weather “Hans”, the water remained on the fields of Elstøen Gartneri Photo: Anne-Lisbeth Moen / private The salad was damaged by all the water during the extreme weather. Photo: Anne-Lisbeth Moen / Private Must sell property before new season The vegetable producer is among the country’s largest. They produce salad and vegetables and deliver to the whole of Eastern Norway. Of the loss of NOK 35 million, he gets NOK 1.8 million covered through the state compensation scheme. That means he has to cover the rest himself. Norwegian Chinese cabbage is packed in Gjermund Kristoffersen’s horticulture. Photo: Hedda Grønbrekk / news Kristoffersen shows off the last of the Norwegian kale being packed. In addition, imported lettuce is packed to keep the wheels turning through the winter. It is important that the permanent core of 60-70 employees have work all year round. But in the summer, over 250 workers work on the farm. Every year, it costs millions of kroner to start the green season. Seeds and equipment must be bought, workers must be employed. In order to manage the costs in the spring, he has to sell off a property. – If I’m going to start a season, it costs NOK 15-17 million. That’s money I have to cough up a year. We will have a significant deficit with such a loss, he says. The potatoes that drowned during the extreme weather Henrik Basberg at Averøen Gård says he can still see remnants of the flood in the fields. Photo: Hedda Grønbrekk / news Just under half an hour away is Averøen Gård. It is run by Henrik Basberg. He mainly grows grain and potatoes. The extreme weather “Hans” caused NOK 5 million in losses to the potatoes when the entire field was flooded. Nor will he be able to cover more than NOK 1.8 million from the loss on the potatoes. With the state compensation schemes for farmers after “Hans”, the farmer must cover 30 per cent of the loss himself. In addition, it has a payment ceiling of NOK 1.8 million, regardless of how big the loss has been. It turns out very badly for the big food producers. This is what many of Henrik Basberg’s potatoes looked like after they drowned in floodwaters. Photo: Caroline Bækkelund Hauge / news Farmer Henrik Basberg was hit by the flood. The water flooded the potatoes in the field. Photo: Caroline Bækkelund Hauge / news Henrik Basberg shows off the potatoes in the field. Photo: Caroline Bækkelund Hauge / news – Whether you are small or large should not matter. In a natural disaster, you should be compensated for what you lose. It can’t be more difficult than that, says Basberg. – If you want agriculture in Norway for the future, then you have to do it in a different way. The Minister of Agriculture asks the farmers to have insurance Agriculture and Food Minister Geir Pollestad (Sp) says that the compensation scheme is intended to be broad, and thus turns out badly for the large food producers. He encourages them to protect themselves in another way, i.e. by taking out insurance. – When you have scarce resources, we must use them to meet as many farmers as possible to give them security. Then there are some who have built up and become very large. They are not covered by the state compensation scheme. Agriculture Minister Geir Pollestad (Sp) believes that the large food producers must obtain insurance. Photo: ISMAIL BURAK AKKAN / news – The very largest producers probably have to look at other ways to secure the crop, possibly insure it, says Pollestad. Why can’t the farmers just have the real loss they have suffered from this type of extreme weather covered? – Neither I nor any other ministers, nor any other politicians can just pay out money because we feel like it. We must take into account the arrangements and rules that we have. Believes compensation is a state responsibility But the problem is that there is no insurance for the large producers that can cover the loss of large crops. Gjensidige Forsikring is the largest player on the market offering insurance to farmers in connection with crop damage. With them, the farmer can insure 15 or 25 percent of the entire crop. Nevertheless, the maximum payout with the best insurance will only result in a payout of NOK 1 million. Torfinn Jæger is product manager at Gjensidige Forsikring. He says Gjensidige would like to help improve the arrangements for farmers, but that the State must start the process. Photo: Gjensidige Product manager at Gjensidige, Torfinn Jæger, says that they had to tighten the scheme after the dry summer of 2018. Then they had no maximum payment. This led to the company having to fork out NOK 70 million. In the spring of 2019, the salary ceiling of NOK 1 million was set. Gjensidige believes that the main responsibility for securing the large producers lies with the State. – It should not be transferred to private insurance. After all, it is the state that wants the degree of self-sufficiency up, and these are climate events that no one can control, says Jæger. – Everyone can see which direction it is going, the climate is getting wetter and wilder. There is no doubt that a better system needs to be in place, both for state compensation, but also for private insurance. – But the state compensation scheme must be put in place first. So it is right that private insurance adapts to the state compensation scheme. It must happen in that order. Must improve farmers’ conditions Egil Hoen is deputy chairman of the Norwegian Farmers Association. He believes the farmer must take too great a risk on behalf of society. The government has set the goal that the degree of self-sufficiency in Norway should rise from 40 per cent to approx. 50 percent in the coming years. Deputy chairman of the Norwegian Farmers’ Association, Egil Hoen believes that compensation schemes for farmers must be improved. Photo: Caroline Bækkelund Hauge / news Hoen believes that better compensation arrangements are crucial to achieving the goal. – As food producers, we live by and deal with climate and climate change every single day, and we experience that it is getting tougher and tougher, the risk is increasing. – We are working to improve these arrangements. It is absolutely crucial for us to maintain and increase food production in the future, says Hoen. He says that this will be a topic in the agricultural negotiations in the spring. Depending on a good climate in 2024 At Elstøen Gartneri, Gjermund Kristoffersen is not yet entirely sure if, and possibly when, he will be paid 1.8 million from the State. And when viewed in the context of the loss, it is small change anyway. He is now aiming for a new season, but is completely dependent on the climate being on his side in 2024. – If I get another year like this, it will be the nail in the coffin. But I go on, hoping that it will go well. But we must be able to dare to talk about it, and get it on the table. Elstøen Gartneri in Røyse is betting that 2024 will be a better year than 2023. Photo: Hedda Grønbrekk / news
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Large food producers do not receive enough compensation after the extreme weather “Hans” – news Oslo and Viken – Local news, TV and radio
