Agriculture: Farmers’ association warns against “breach of promise” regarding relief

Agriculture: Farmers’ association warns against “breach of promise” regarding relief

Farmers across the country fanned out with tractors to demonstrate against the end of diesel subsidies – and the entire agricultural policy in Berlin. The coalition signaled a willingness to compromise. And now?

The farmers’ association is insisting that the federal government provide relief for the industry after the major tractor protests at the beginning of the year. “The discontent has not disappeared,” farmers’ president Joachim Rukwied told the dpa before the German Farmers’ Day in Cottbus. “We need a reorientation of agricultural policy, and if that does not happen, dissatisfaction will increase.”

Among other things, Rukwied warned against the proposed relief that would allow companies to offset fluctuating results from good and bad years when calculating their taxes. “If profit smoothing is not implemented, farmers will say: that is a breach of promise. Then politicians will lose their trust, which is already low. The coalition partners need to know that.”

After nationwide protests by farmers over the abolition of agricultural diesel subsidies at the beginning of the year, the traffic light coalition had promised the industry other relief measures – including relief from bureaucratic requirements and tax regulations, which are to be decided by the summer. The political framework for the industry is a topic at the German Farmers’ Day.

Rukwied: Situation is still difficult

Rukwied stressed: “The situation for the companies is still difficult.” In important areas, the price level is much lower than it was a year and a half ago. At the same time, costs for fertilizers, crop protection and energy are still high. For the 2023/24 financial year, which runs until the end of June, the farmers’ president reiterated: “In many sectors of production, we are expecting a sharp decline in profits; unfortunately, this is no longer just a fear.”

In the previous financial year, the company’s results, which still have to be used to pay for investments, rose to a record level.

Source: Stern

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