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Reform of subsidies for farmers: “Money must flow for services to farmers, not for land”

2024-04-05T06:27:34.160Z

Highlights: Reform of subsidies for farmers: “Money must flow for services to farmers, not for land”.. As of: April 5, 2024, 8:09 a.m By: Lisa Mayerhofer CommentsPressSplit After massive farmers' protests, traffic lights and the EU are making some progress towards farmers. But are the measures now the right ones? An advisor to Agriculture Minister Özdemir is critical of this. The EU Commission has proposed far-reaching concessions to agriculture, which are now to be decided in an expedited manner.



As of: April 5, 2024, 8:09 a.m

By: Lisa Mayerhofer

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Press

Split

After massive farmers' protests, traffic lights and the EU are making some progress towards farmers. But are the measures now the right ones? An advisor to Agriculture Minister Özdemir is critical of this.

Munich - It was one of the biggest excitements of 2024: the farmers' protests against excessive bureaucracy and the dismantling of agricultural subsidies such as agricultural diesel. After many road blockades and protests, it is clear: The subsidies for agricultural diesel will still be gradually eliminated - but the traffic light government wants to accommodate farmers in other areas - for example, the new fertilizer law has been postponed and bureaucracy has been reduced.

In other European countries, farmers also took to the streets - and sometimes protested massively. The EU Commission has therefore proposed far-reaching concessions to agriculture, which are now to be decided in an expedited manner. For example, relaxations of environmental regulations and exemptions from penalties for small farms are planned.

Criticism of EU subsidies: “Around half of the money doesn’t end up with the farmers”

Achim Spiller, professor at the University of Göttingen, is one of the most important advisors to Agriculture Minister Cem Özdemir (Greens) as co-chairman of the Agriculture Future Commission. In an interview with Die

Welt

, he was critical of the reactions of the EU and parts of the traffic light government: “The problem is that the protests do not result in a sustainable agricultural and environmental policy.”

Agriculture Minister Cem Özdemir (Greens) visits a potato farmer in Lower Saxony. (Archive photo) © IMAGO/Leon Kuegeler/photothek.de (archive photo)

After protests in many countries, the European Commission in particular is “now withdrawing regulations almost in a panic – and in a problematic form.” He continues: “It is not just reducing bureaucracy, but is significantly reducing standards. This may help agriculture in the short term, but it will hurt it in the long term. Because the problems with biodiversity and animal welfare standards are real.”

Spiller also harshly criticizes the general structure of EU subsidies for farmers: “Farmers receive six billion euros in subsidies that Brussels pays to Germany based on the area alone,” explains the newspaper’s expert. The problem: A large part of the area is now leased and belongs to people “who have often long since moved to the city,” according to the expert. “Economically, this means that these guaranteed payments simply increase the value of the land and thus the rental price. So around half of the money ends up not with the farmers, but with the landowners. That's a scandal."

Spiller: “Money must flow for services to farmers, not for land”

Instead, he suggests gradually changing the basis of the subsidies: “Money must flow for services to farmers, not for land. “In this way, we can also reward landscape protection and higher animal welfare standards,” said Spiller to the

world

. This must be implemented “gradually within the next two EU funding periods”. This would give farmers investment security. “This proposal from the Future Commission is very central,” says the co-chair of that commission.

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This was founded in 2019 - also back then because of the farmers' protests. A consensus has also been found between farmers, society and science - but this has so far received little attention from politicians. “On April 11th, however, we will have an appointment with Chancellor Olaf Scholz, after we have already spoken to the leaders of the government factions,” Spiller told the newspaper. “It is clear to everyone that you have to take the whole industry, but also the environmental associations, with you. “It’s about as big a change in agriculture as it is in energy or transport – but instead of just a few large corporations, there are 200,000 predominantly family-run businesses.”

Farmers' association calls for new relief for farmers

Meanwhile, the German Farmers' Association (DBV) is proposing new relief for farmers due to the abolition of agricultural diesel subsidies. “Our businesses now urgently need equivalent compensation for this enormous additional burden,” said the president of the farmers’ association, Joachim Rukwied, in Berlin at the end of March. In addition, bureaucratic burdens “questioned” the future viability of the industry.

According to the DBV, several measures are necessary to compensate for the gradual withdrawal of diesel subsidies by 2026. These include tax relief, a tax exemption for the use of renewable fuels and a risk reserve. In addition, the bureaucracy must be reduced. There, “instead of special national paths,” an “alignment with European requirements is urgently needed in order to restore competitiveness in the European context,” the farmers explained.

With material from AFP

Source: merkur

All news articles on 2024-04-05

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