After tractor protests - Bundestag approves relief for farmers
For farmers, following the nationwide farmers' protests against the end of Diesel subsidies, other reliefs are coming into sight. The Bundestag passed a legislative package with several measures that the coalition had already promised the industry in winter. Among other things, tax reliefs for fluctuating profits are planned. The position of farmers in the supply chain up to supermarkets is to be strengthened. New incentives for voluntary services of businesses for more biological diversity are also planned.
Agriculture Minister Cem Özdemir made it clear that promises to the industry would now be implemented. The package supports initiatives for bureaucracy reduction and should bring competition and biodiversity protection together. Whoever voluntarily does more for the environment, "will feel it on their account" in the future, said the Green politician. The opposition criticized. The chairman of the Agriculture Committee, Hermann Fäber (CDU), said, "not everything is wrong" with the plans. However, the tax reliefs are smaller than the additional burdens for agricultural diesel.
The coalition reacted with tax reliefs to weeks-long farmers' protests in winter against the then-passed decision on the end of agricultural diesel subsidies. The legislative package is expected to still come before the Bundesrat on September 27.
Tax Reliefs
From the planned tax relief for income tax, the industry is expected to profit on average by 50 million Euros per year, according to the draft law. For this, farms should be able to offset results from good and bad years. This should mitigate the effect that a higher tax rate applies to higher incomes. The temporarily limited concession should now be possible until 2028 for farmers.
Additionally, permanent protection against unfair business practices is planned for farmers' suppliers from the field to large trading companies. For example, certain suppliers are to be included in a protective shield against unethical business practices.
New Environmental Incentives
Two new ecological regulations are to be introduced from 2026, which honor voluntary environmental services - one for cattle grazing and one for improving biological diversity. For this, there should be no cuts in basic payments from EU agricultural financing. It is also to be determined that an EU environmental requirement for fallow land can be postponed indefinitely.
Özdemir told the German Press Agency: "Our farmers and farmers are motivated to do more for the environment and biodiversity – but it must also pay off for them." This will be implemented with the new ecological regulations, which apply to both conventional and organic farming businesses. "We are increasing the budget for ecological regulations without making any cuts to the basic income support." Dairy farms will benefit most from this, which keep their cows out to pasture.
- Following the farmers' protests in Berlin, Germany's Bundestag passed a legislative package providing relief for farmers, including tax reliefs for fluctuating profits.
- Cem Özdemir, the Agriculture Minister in the Traffic light coalition, asserted that the industry would receive the promised reliefs, with a focus on environmental incentives and reducing bureaucracy.
- The planned tax reliefs are expected to benefit farmers by an average of 50 million Euros annually, enabling them to offset income from good and bad years, as well as extending temporary protection from unfair business practices until 2028.
- To further incentivize environmental efforts, two new ecological regulations will be introduced in 2026, honoring voluntary services in cattle grazing and improving biological diversity, without altering EU agricultural financing or fallow land requirements.
