New annual figures show that Austrian farmers have had a bad year. In 2023 they suffered a loss of income of more than twenty percent compared to the exceptionally favorable year before. That is why the government in Vienna is now coming up with an extra support package.
The main factors for the disappointing revenues were high production costs and, in some cases, lower producer prices. The decline in income was mitigated by higher prices in animal production and modest savings in input costs.
In response, the Austrian government has provided an additional financial support package of more than 300 million euros for farmers. The largest part is intended for a discount of 20 cents per liter for agricultural diesel, retroactively from the second half of last year to the end of 2025.
In addition, there will be a reduction of 75 million euros in environmental taxes on agriculture, horticulture and livestock farming. In addition, there is compensation for the CO2 pricing for the years 2022 to 2025. The Austrian Ministry of Agriculture (BML) estimates this support at 134 million euros.
Furthermore, 50 million euros will be provided as area-related support and 50 million euros as an incentive for more investments in animal-friendly stables. Agriculture Minister Norbert Totschnig said that the support package is mainly intended to strengthen the competitiveness of agricultural companies.
The financial support package has been received with great support in the agricultural sector. The presidents of the Austrian and Lower Austrian Chambers of Agriculture emphasized that further support for agriculture contributes to securing the supply of local food.
The chairman of the National Farmers' Association, Georg Strasser, pointed out that market and price fluctuations, high raw material costs, climate change and, last but not least, increasingly fierce competition were posing major challenges to Austrian agricultural companies.
According to Josef Moosbrugger, Chairman of the Chamber of Agriculture, the price-cost difference in the main Austrian production areaTP4Tn is significant. The leading agricultural politician called on European agricultural policy to adjust all EU agricultural funds to inflation.
He referred, among other things, to the Austrian inflation adjustment of the national share in the second pillar of the European CAP agricultural policy. The current federal government is a coalition of the Christian Democratic ÖVP and the Greens.