In return, there will be tax relief for the agricultural sector, a reduction in administrative red tape, and Berlin will cooperate in expanding European agricultural regulations. At the same time, the federal government announced a package of measures to support agriculture.
The federal Bundesrat decided in Erfurt by majority to refrain from establishing a time-consuming appeal procedure against the revised investment and austerity operation. Agreement had already been reached on some points in recent weeks, said Finance State Secretary Katja Hessel (FDP). A protocol statement lists ten points that “must be implemented quickly.”
This includes, among other things, the reintroduction of the so-called income averaging. For income tax calculation, not only one tax year but multiple years are taken into account. This allows revenue losses in the agricultural sector caused by, for example, extreme weather conditions to be better compensated.
Due to a court decision, the coalition government of SPD, Greens, and FDP had to reduce an investment plan from 7 billion euros to just over 3 billion, resulting in additional interim cuts. To bridge the budget gap, the center-left traffic light coalition decided, among other things, to phase out cheap diesel for agricultural vehicles.
The farmers' association DBV emphasized that the battle over agricultural diesel is not entirely over. It is essential to relieve agriculture to at least the same extent, said association chairman Joachim Rukwied. The DBV chairman stated he is waiting to see whether BMEL Minister Cem Ă–zdemir (Greens) and Finance Minister Lindner (FDP) will now manage to push their tax benefits and cost reductions through the Bundestag.
Coinciding with the budget consultation, the BMEL ministry in Berlin presented a new policy plan on biodiversity and the use of genetic crop protection and growth promoters on Friday. Earlier, Ă–zdemir had promised to encourage farmers to use fewer or no chemical pesticides.
Several CDU-led state premiers said the diesel issue would remain relevant at least until the federal elections in 2025. CDU-led state governments such as North Rhine-Westphalia, Saxony-Anhalt, and Berlin allowed the austerity package to take effect because a dissenting vote at the federal level would have caused a crisis with their coalition partners in their own states.
Opposition politicians also say they are curious whether Ă–zdemir will accept the EU's relaxation of the Common Agricultural Policy at the European Agriculture Council in Brussels on Monday (March 25). Earlier, the Greens made it clear that reducing burdens on farmers must not lead to lowering ambitions for the environment, nature, and biodiversity.