After great discontent over the end of diesel subsidies, politicians had promised farmers relief – the first of which have now been fulfilled.
After the nationwide farmers’ protests against the end of diesel subsidies, other relief measures are in sight for farmers. The Bundestag passed a legislative package with several measures that the traffic light coalition had already promised the outraged industry in the winter. These include tax relief for fluctuating profits. The position of farmers in the supply chain up to the supermarkets is to be strengthened. New incentives for voluntary services by companies to increase biodiversity are also to be introduced.
Agriculture Minister Cem Özdemir made it clear that promises to the industry were now being implemented. The package underscores initiatives to reduce bureaucracy and is intended to bring together competitiveness and species protection. Anyone who voluntarily does more for the environment “will see it in their account in the future,” said the Green politician. Criticism came from the opposition. The chairman of the Agriculture Committee, Hermann Färber (CDU), said that “not everything is wrong” with the plans. However, the tax relief is less than the additional burden on agricultural diesel.
The coalition responded with the relief to weeks of farmers’ protests in the winter against the decision to end agricultural diesel subsidies. The legislative package is expected to be presented to the Bundesrat on September 27.
Tax relief
The industry is to benefit from the proposed income tax relief with an average of 50 million euros per year, according to the draft law. In return, farms will be able to offset results from good and bad years. This is intended to mitigate the effect of a higher tax rate being applied to higher incomes. The reduction, which was limited to 2022, will now be available to farmers until 2028.
In addition, the position of farmers in the supply chain from the field to the large trading companies is to be strengthened. For example, it is planned to include certain suppliers in protection against unfair business practices not just temporarily, but permanently.
New environmental incentives
In addition, two new eco-regulations are to be introduced from 2026 that reward voluntary environmental services – one for grazing cows and another to improve biodiversity. In return, there will be no cuts in the basic payments from EU agricultural funding. It will now also be possible to further suspend an EU environmental requirement on fallow land.
Özdemir told the German Press Agency: “Our farmers are motivated to do more for the environment and species protection – but it must also pay off for them.” This will be implemented with the new organic regulations, which apply to both conventional and organic farms. “We are increasing the budget of the organic regulations without making any cuts in basic income support.” In the future, this will primarily benefit dairy farms that keep their cows on pasture.
Source: Stern
