Discussions on this will continue in May. Moreover, the states want to wait and see what happens next week regarding the announced budget cuts.
The main issue among the sixteen states is how the approximately 6 billion euros in agricultural subsidies will be distributed. Several agricultural organizations and environmental groups had called for finally starting the previously announced subsidy scheme for dairy cows grazing in the meadow. Research shows that direct support for pasture grazing would hardly cause problems with the existing government funding.
However, there were heated debates at the semi-annual Agricultural Ministers Conference (AMK), especially between departments led by the Greens and states with ministers from other political affiliations. The Green ministers advocated for new environmental rules, such as the grassland premium or low-emission manure spreading. This should be financed by decreasing the direct hectare premium by about 17 percent to approximately 126 euros per hectare.
A larger shift from direct payments to the second pillar is also not yet on the agenda for most states. Agriculture Minister Cem Özdemir proposed this shift last year, but most German farmers are opposed to it. Apparently, the massive farmers' protests of recent weeks have made an impression on the Ministers of Agriculture. All department heads emphasized the need to consider farmers’ incomes.
Minister Till Backhaus (SPD) of Mecklenburg-Western Pomerania stressed making existing organic rules more attractive rather than introducing new ones. He urged farmers to carefully review the increased premiums for organic regulations. There is more funding for set-aside land, crop rotation, agroforestry, and refraining from pesticide use.
The state ministers expect that the federal government will adopt their AMK decision accordingly when it discusses the amended law on direct payments under the Common Agricultural Policy (CAP) in the center-left traffic light coalition on March 27, 2024.