No Money for Agricultural Transition in German Budget Next Year Either

The total 2025 budget for the BMEL ministry amounts to approximately 6.3 billion euros, but 150 million euros still need to be saved to reduce the federal government’s budget deficit. These cuts affect various parts of agricultural policy, including rural development programs.

For the following years, there are major financial challenges. The multi-year forecast from Minister Cem Özdemir (Greens) mainly focuses on reforms in livestock farming and agriculture. He calls these essential to comply with European standards on climate and animal welfare.

This transition is, however, expensive, and there is insufficient budget to provide subsidies for it. Both the government factions and opposition parties agree that government support is needed for the transition, but they still disagree on how it should be funded. Özdemir believes the VAT on all food products can be raised by a few percent; others think there should be a separate surcharge (‘meat tax’) on the retail price of red meat.

A third option is increasing income tax: then all Germans would contribute, not just meat-eaters. Özdemir called on the center-left coalition of SPD, Greens, and FDP to finally make a decision on this matter.

During the debate, the opposition expressed sharp criticism of the agricultural budget. The CDU/CSU, led by Friedrich Merz, criticized the lack of ambition and called the proposed reforms half-hearted. According to Merz, the reforms must be accelerated with concrete financial support for the agricultural sector.

Despite the criticism and financial constraints, Özdemir affirmed that he remains committed to his vision for a sustainable agricultural sector. He pointed out that the reforms are not only necessary to comply with European rules but also to improve the competitive position of German agriculture in the long term.

Since the previously announced tightening of animal welfare laws in the European Union has been postponed indefinitely, Özdemir submitted his own proposal to the Bundestag last week. He also submitted a German bill to limit the use of chemicals in agriculture; he does not want a ban.

The new animal welfare law provides, among other things, stricter penalties and fines for animal abuse, a ban on anonymous animal trade, a phase-out provision for purchasing circus animals, and a reduction in the number of animal experiments in laboratories. The ban—over ten years—on keeping (tethered) livestock year-round will not apply to farmers with fewer than fifty animals.