The main factors for the disappointing income were high production costs and, in some cases, lower producer prices. The income decline was alleviated by higher prices in animal production and modest savings on input costs.
In response, the Austrian government has allocated an additional financial support package of over 300 million euros for the farmers. The largest part is intended for a discount of 20 cents per liter of agricultural diesel, retroactively from the second half of last year until the end of 2025.
In addition, there will be a reduction in the environmental tax on agriculture, horticulture, and livestock farming of 75 million euros. Furthermore, there is a compensation for CO2 pricing for the years 2022 through 2025. The Austrian Ministry of Agriculture (BML) estimates this support at 134 million euros.
Moreover, 50 million euros will be allocated as area-based support and 50 million euros as an incentive for more investments in animal-friendly stables. Agriculture Minister Norbert Totschnig stated that the support package is primarily intended to strengthen the competitiveness of agricultural businesses.
The financial support package has been very well received in the agricultural sector. The chairmen 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 not least increasingly fierce competition pose major challenges to Austrian agricultural businesses.
According to Josef Moosbrugger, chairman of the Chamber of Agriculture, the price-cost gap in the main Austrian production areas is considerable. 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.