The German coalition parties have reached an agreement on a promised aid package for agriculture, which includes tax measures and reduced bureaucracy. Berlin aims to implement a number of EU-approved relaxations this year. The CDU opposition and the German farmers' association call the aid package "too small and too late."
The package is a response to farmers' protests that began last year due to the gradual abolition of tax benefits for agricultural diesel. The federal government has withdrawn several austerity plans and extended the abolition of discounts on agricultural diesel by three years. The measures now must be approved by the Bundestag to take effect.
The aid package contains measures such as the phased abolition of cheap agricultural diesel and the reintroduction of the fiscal "smoothing" of agricultural income, which was abolished in 2022. This allows farmers to spread their income over several years, providing them with greater financial stability in years of fluctuating harvest results.
An important measure in the package aims to strengthen the position of agriculture and animal husbandry in the national food chain. This is intended through better price and production agreements with large German supermarket chains. As a result, farmers should receive a fairer compensation for their products.
The coalition wants to discuss the plans in the Bundestag next week and finalize part of them before the summer recess. Agriculture Minister Cem Özdemir (Greens) called it a "strong package" that will reduce the burdens on farmers and strengthen their market position. Finance Minister Christian Lindner (FDP) added that the competitiveness of agricultural businesses must not be unnecessarily restricted.
The farmers' association responded mixedly to the package. DBV Chairman Joachim Rukwied called it a "much too late insufficient step." The CDU opposition speaks of a 'small plaster on a large wound,' while the Greens emphasize that the damage caused by many years of CDU agricultural policy cannot be suddenly healed.
Last week, the three coalition parties SPD, Greens, and FDP failed to reach an agreement on their draft budget for next year. It should be ready before the summer recess. The ruling parties are under increasing pressure after voters gave them a severe defeat in the June elections for the EU Parliament. The FDP finance minister wants to rein in the expenditures of all ministries (except Defense).
