More than half of German pig farmers have strong interest in quitting pig production in exchange for appropriate financial compensation. Besides subsidies for modernizing and converting barns, paid full cessation (‘exit bonus’) could also be an alternative.
A study by the Institute for Agricultural Economics at the University of Kiel shows that German farmers are very interested in a buyout scheme. Sixty percent of the surveyed German pig farmers can imagine a paid exit from pig farming. In the Netherlands, such an exit bonus (‘warm restructuring’) is already a reality. The University of Kiel researched the opinions of nearly 500 German pig farmers on such a Dutch program.
In agricultural circles there is anxious anticipation and some skepticism regarding mid-February, when the so-called Borchert Commission will present long-awaited proposals for modernization of German agriculture and livestock farming. The essence of most proposals from the former agriculture minister is already known: less pollution, more organic, less manure and chemical aids, and a more animal-friendly farming sector.
Promotion
For the German meat industry, a few additional demands apply: a ban on cages, mandatory access to outdoor areas, manure and waste separation, a ban on non-stunned castration and slaughter. Initial calculations show that the German pig industry will have to depreciate assets early for many millions and invest billions in new construction.
Moreover, since the corona outbreak last year, the large German meat industry has come under scrutiny because the major German slaughterhouse bosses did too little to prevent corona infections among their hired personnel. Working conditions in the meat processing industry came under renewed criticism, leading to new, stricter labor laws.
Agriculture Minister Julia Klöckner will soon present calculations to demonstrate that changes cannot happen so rapidly and not all at once. She does have a subsidy fund of one billion euros available, but it will likely go mainly to the dairy and poultry industries.
For a third of German pig farmers, it is important not to leave the sector entirely but to remain active in pig farming in a different way, under keywords such as more animal welfare and fewer animal housings. Another third of respondents can imagine completely stopping, selling old barns fully, and accepting a building ban. The last third fully rejects any financing program for ‘warm restructuring.’
For participating farmers, the level of compensation was the most important factor in their decision. The more money offered, the more German pig farmers show willingness to exit. The main reason German pig farmers could even imagine a paid exit is the stricter laws on animal welfare and environmental protection.