German agriculture industry says relief package following wave of protests is insufficient

Germany has unveiled a package of measures aimed at providing cost relief to farmers who are under pressure to make food production more sustainable and in line with climate targets. The measures, agreed by Germany’s coalition government, come after a series of country-wide protests by the agricultural industry earlier this year. In an e-mailed statement, agriculture minister Cem Özdemir from the Green Party said the “strong package” will provide relief to farmers while simultaneously strengthening their competitiveness. He insisted the package delivered on a deal the government made with farming industry representatives in March in response to the large-scale protests by farmers. “We introduce greater financial planning security by smoothening taxation, strengthening the position of farmers in the food trading chain and better equipping them against unlawful business practices,” Özdemir said. Smoothened taxation of revenue is supposed to better shield farmers against weather events that diminish their harvest, such as droughts or floods. At the same time, the package would reduce bureaucratic hurdles for farmers, he added.

Joachim Rukwied, the head of the German Farmers’ Association (DBV), rejected the idea that the package would lead to sufficient relief for farming businesses. “It’s a step in the right direction but lags far behind the requirements of farmers,” the agricultural industry lobby group leader argued. He said that competition in the EU’s agricultural sector is distorted and that planned steps to improve animal wellbeing and protect biodiversity should be taken back. “Moreover, we need a solution for renewable diesel for agriculture,” Rukwied added, hinting at the gradual reduction of fossil diesel subsidies for farmers which triggered this year’s protests. “We have to acknowledge that we’re still lightyears away from a true compensation for the additional burdens and taxing of the past months,” the chief lobbyist said.

Farming association AbL called the agreement “good news and an important signal to the farming industry. AbL board member Elisabeth Waizenegger said the government coalition had “finally understood” that changes to the market are needed to strengthen the position of food producers. “The improvements in the agricultural organisation and supply chain law are a first step.” More changes would have to follow, Waizenegger said, citing a ban on selling produce below production costs and tighter regulation of purchase agreements in the dairy farming sector. 

The NGO Environmental Action Germany (DUH) said the reforms would strengthen farmers in their relationship with retailers and supermarket chains. However, changes regarding grazing regulation in the package did not sufficiently address species protection, DUH head Sascha Müller-Kraenner argued. “A voluntary grazing premium cannot compensate for the loss in biodiversity that comes with the scrapping of mandatory species protection areas,” he said. Müller-Kraenner also criticized farming lobby group DBV for rejecting rules on nitrate reduction and animal welfare. “This leads to questions among taxpayers about why subsidising the agricultural sector is acceptable if the agricultural industry lobby rejects effective environmental and animal protection rules.”