Brussels, 16/10/2003 (Agence Europe) - The European Commission has authorised a state aid measure under which the Netherlands would make a state guarantee worth maximum € 50 million available as an incentive for insurance companies to introduce insurance against crop damage caused by excessive rain. The subsidy is expected to offer a structural solution for such damage so that compensation by the state on a case by case basis in the future can be avoided. The guarantee is granted on the condition that the insurance covers damage amounting to at least 25% of normal production of the product concerned on the holding. It is available for all insurance companies, Dutch or from other Member States, on the explicit condition that the advantage of the guarantee is entirely passed on to the agricultural sector through lower insurance premiums which should make the insurance sufficiently attractive for arable farmers.