Finances - Farmers announce "resistance" to traffic light plans
The Mecklenburg-Vorpommern Farmers' Association has sharply criticized plans by the Berlin coalition government to abolish the subsidy for agricultural diesel and the tax exemption for agricultural vehicles. "Questioning the agricultural diesel regulation will torpedo the competitiveness of German agriculture and boost the spiraling costs of food production," warned the President of the Farmers' Association of Mecklenburg-Vorpommern, Detlef Kurreck, on Thursday. He announced "fierce resistance" to the plans. Agriculture Minister Till Backhaus (SPD) also expressed his criticism.
According to estimates by the association, the cuts in agricultural diesel for agricultural and forestry companies in Mecklenburg-Vorpommern amount to more than 20 million euros. "The abolition of the current agricultural diesel regulation would undo all the efforts of the past 20 years to make agriculture more ecological," says Kurreck. According to the association, the average diesel consumption in agriculture is around 100 liters per hectare of land per year.
Backhaus referred to calculations by the MV State Research Institute, according to which farmers in the state are expecting losses of around 28 million euros as a result of the abolition of the agricultural diesel refund alone. It is true that there has long been talk of reducing climate-damaging subsidies. However, the end of the agricultural diesel subsidy and the motor vehicle tax exemption is now a further bitter blow for the affected farms in already uncertain times and will also have further consequences.
"It can be assumed that the abolition of these two subsidies will lead to cost increases in agriculture, which will lead to further distortions of competition and ultimately also have an impact on consumers' wallets," explained Backhaus.
He complained that the federal government was not simultaneously providing further incentives for the use of climate-friendly energy sources and fuels. He considered it positive that the "Natural Climate Protection" action program would be maintained and that the cuts in coastal protection would be somewhat mitigated.
According to the key points for savings in the 2024 federal budget presented by the SPD, Greens and FDP on Wednesday, tax concessions on agricultural diesel are to be abolished in the energy tax. Federal Agriculture Minister Cem Özdemir (Greens) has also already voiced concerns. If both the agricultural diesel subsidy and the motor vehicle tax exemption were to be abolished, this would place a disproportionate burden on agriculture.
Press release
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- The Traffic light coalition, composed of the SPD, Greens, and FDP, has proposed abolishing the subsidy for agricultural diesel and the tax exemption for agricultural vehicles, a move criticized by the Mecklenburg-Vorpommern Farmers' Association.
- Till Backhaus, an Agriculture Minister from the SPD, expressed his concerns about these plans, fearing they would negatively impact the agricultural sector, especially in Neubrandenburg.
- The Mecklenburg-Vorpommern Farmers' Association estimates that the cuts in agricultural diesel for agricultural and forestry companies in the region amount to over 20 million euros.
- If both the agricultural diesel subsidy and the motor vehicle tax exemption were to be abolished, farmers in Mecklenburg-Vorpommern would face losses of around 28 million euros alone, according to Backhaus' calculations.
- The President of the Farmers' Association, Detlef Kurreck, warned that questioning the agricultural diesel regulation would hinder competitiveness in German agriculture and boost food production costs.
- Backhaus expressed disappointment that while subsidies for climate-damaging activities are being reduced, there are no equivalent incentives for the use of climate-friendly energy sources and fuels within the Federal Government's plans.
Source: www.stern.de
