The agricultural sector and politics find themselves at a crucial stage as the tariff negotiations of the tripartite agreement are at a standstill, despite an earlier agreement within the social field involving governments, businesses, agricultural umbrella organizations, nature groups, and local authorities.
The meeting in Herning was dominated by a sense of urgency. More than 400 farmers expressed concerns about the future of their businesses. The meeting was attended not only by prominent representatives of the agricultural sector but also by five Danish ministers.
Søren Søndergaard, chairman of L&F, said in his opening speech that the agricultural sector is prepared to adapt and wants to contribute, provided there is clear political support. Minister for Climate, Energy and Utilities Lars Aagaard called the farmers the “heroes of the story” for their willingness to contribute to the green transition.
Chairman Søndergaard criticized the leaked information about the negotiations, which he said further complicated the discussion. The leak caused unrest and distrust within the sector and made negotiations more difficult. Politics must still choose among three variants for nature restoration and emission reduction, with associated lower or higher tax rates.
A new obstacle to a final agreement are two recent reports that raise questions about the new CO2 climate tax for agriculture and livestock. These reports, published shortly before the meeting, have sown additional doubt about the economic consequences for farm businesses.
One report shows that nitrate and nitrogen pollution is greater than previously calculated, and the second report demonstrates that Danish farmers’ incomes have risen significantly in recent years. In politics and civil society, there is now talk that farmers should contribute more financially to the transition.
Despite disappointing reports and the absence of a breakthrough during the meeting, Minister Aagaard expressed hope that politics will soon make a decision. He emphasized the necessity to act quickly to maintain the agricultural sector’s trust and realize the green transition without causing unnecessary harm to the sector.