Agriculture Minister Özdemir criticizes budget agreement due to agricultural cuts
If German farmers were to lose these subsidies, it would "put our agriculture at a competitive disadvantage compared to other countries", Özdemir continued. "I think that is problematic."
Federal Chancellor Olaf Scholz (SPD), Federal Economics Minister Robert Habeck (Greens) and Federal Finance Minister Christian Lindner (FDP) had previously announced an agreement to plug the hole in the 2024 budget caused by the Federal Constitutional Court's budget ruling and at the same time comply with the debt brake. Among other things, "environmentally harmful subsidies" are to be reduced.
This includes the abolition of the concession on motor vehicle tax for forestry and agriculture, which, according to information from the Federal Ministry of Finance, is expected to generate 480 million euros annually. There was initially no further information on the savings potential of the abolition of tax concessions for agricultural diesel.
"I was informed of the results of the talks in the morning," explained Özdemir. He now expects the Federal Ministry of Finance, which is responsible for agricultural diesel subsidies as well as vehicle tax exemptions for agricultural and forestry vehicles, to make proposals to support farmers elsewhere - "for example through permanent funding for the conversion of animal husbandry or more incentives for innovation and the future".
The President of the German Farmers' Association, Joachim Rukwied, described the decision of the traffic light leaders as a "declaration of war on German agriculture and on us farming families". The government "obviously has no interest in a functioning and competitive agriculture in Germany".
"Above all, this will further fuel the demise of farms," fears Jan Plagge, President of the organic farmers' association Bioland. The lack of money will put additional pressure on many farmers "who are already struggling". Compensation is needed, for example by better rewarding the environmental services provided by agriculture.
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- Özdemir, being the Federal Minister of Agriculture, criticized the budget agreement due to the proposed agricultural cuts, stating that it would put German agriculture at a competitive disadvantage.
- According to the announcement made by Olaf Scholz, Robert Habeck, and Christian Lindner, the budget agreement aims to fill the gap in the 2024 budget caused by the Federal Constitutional Court's ruling and comply with the debt brake.
- One of the measures in this agreement is the abolition of the concession on motor vehicle tax for forestry and agriculture, which is expected to generate 480 million euros annually, according to the Federal Ministry of Finance.
- Christian Lindner, as the Minister of Finance, is responsible for the agricultural diesel subsidies and vehicle tax exemptions for agricultural and forestry vehicles.
- Özdemir expects the Federal Ministry of Finance to propose alternative measures to support farmers, such as permanent funding for animal husbandry conversion or more incentives for innovation and future development.
- The President of the German Farmers' Association, Joachim Rukwied, described the decision made by the traffic light leaders as a "declaration of war" on German agriculture and farming families.
- Jan Plagge, the President of Bioland, the organic farmers' association, fears that the lack of financial support will further exacerbate the struggles of many farmers due to the proposed agricultural cuts.
- Criticizing the budget agreement, Cem Özdemir, the Federal Minister of Agriculture, emphasized the need for better compensation and reward for the environmental services provided by agriculture to counteract the impact of the proposed agricultural cuts.
Source: www.stern.de
