No more tax refunds for agricultural diesel – that is causing anger among farmers. One scientist understands the emotions, but still thinks the subsidies are outdated.
From the point of view of an agricultural economist, the controversial subsidies for agricultural diesel are no longer up to date. “If you want to help agricultural businesses, you have to find other ways that are more targeted,” said agricultural scientist Stephan von Cramon-Taubadel from the University of Göttingen.
The subsidy system must be fundamentally changed, demanded von Cramon-Taubadel. “There is a lack of a larger concept for meaningful sustainability-driven support for the agricultural sector,” criticized the scientist. When it comes to income support, you have to find the companies with income problems that you want to preserve and give them targeted help. Or you have to specifically spend money on environmental services and reward the farmers who provide these services. Subsidies that depend on the size of the area are no longer appropriate. “It’s out of time to pay more subsidies the more diesel someone uses.”
But politicians in Germany must also recognize that the course for agricultural policy is set in Brussels. Instead of relying on extra-high German standards for environmental regulations or animal husbandry, the aim should be to work towards a Europe-wide harmonization of the rules. This also means accepting if one’s own maximum demands cannot be enforced across Europe. This is the only way a common market works, said von Cramon-Taubadel.
Among other things, the federal government wants to end the tax incentives for agricultural diesel. Farmers fear high financial burdens. The diesel reduction and the exemption from vehicle tax total a total of around one billion euros. According to statistics, there are currently around 250,000 companies, which mathematically leads to an average burden of 4,000 euros per company, said von Cramon-Taubadel. “Of course the farms are very heterogeneous – some large arable farms with lots of vehicles will lose significantly more than 4,000 euros, but many smaller ones, for example with livestock and little area, will lose significantly less,” said the scientist.
Frustration, challenges and uncertainty
Most large arable farms have been able to operate quite successfully in recent years thanks to the high prices. But it is completely clear that there will also be some hardship cases. “I have the impression that it’s less about the actual amount per company at the moment – a lot of frustration is being unleashed in an industry that is facing major challenges and a lot of uncertainty, that is very dependent on politics, but is not receiving any clear signals from politicians “said von Cramon-Taubadel.
A commission of experts has calculated that, for example, the socially required restructuring of animal husbandry costs four billion euros per year, which farmers cannot meet on their own. “The farmers accept the criticism and want to become more sustainable, but in the end nothing is implemented by politicians and now they are getting a cut,” said von Cramon-Taubadel.
Many farmers are trying to become more environmentally friendly, but it doesn’t come at no cost. “And now the state comes along and, from the agricultural perspective, does not provide the aid that is necessary, instead it is now adding one more thing on top – even if, from a sober perspective, it is not such a big deal and the reform of this subsidy is actually overdue,” said by Cramon-Taubadel.
Source: Stern
