Agriculture - Farmers' association criticizes traffic light for budget compromise
The farmers' association in Saxony-Anhalt has sharply criticized the traffic light coalition for its budget compromise. "The federal government obviously has no interest in an economically functioning agricultural sector," said Olaf Feuerborn, President of the Saxony-Anhalt Farmers' Association, according to a statement on Friday. There is no other explanation for the fact that farmers are to be burdened with hundreds of millions of euros as part of the planned 2024 federal budget.
In addition to the agricultural diesel subsidy, the traffic light government also wants to abolish the motor vehicle tax exemption for agricultural and forestry vehicles. "Taken together, these are items amounting to around 900 million euros, which farms will then miss out on." In addition, the CO2 tax for fossil fuels is to be increased, which would make production even more expensive.
Feuerborn emphasized that the agricultural diesel subsidy and the motor vehicle tax exemption are compensation for disadvantages and, in his opinion, do not fall under the label of "climate-damaging subsidies". "German agriculture has high standards and very high production costs," said the head of the farmers' association. The removal of the "disadvantage compensation" would mean a weakening of competitiveness.
Following the Federal Constitutional Court's budget ruling, the coalition government reached an agreement on Wednesday on how it intends to close the billion-euro gap in the 2024 federal budget. Savings and cuts are planned, which will also affect consumers in terms of electricity, gas and petrol prices. Savings are to be made primarily by abolishing climate-damaging subsidies, making cuts to the budgets of individual departments and reducing federal subsidies.
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- The traffic light coalition's decision to abolish the motor vehicle tax exemption for agricultural and forestry vehicles, as part of their budget compromise, has been met with criticism by the agricultural sector in Saxony-Anhalt.
- The Federal Government's budget compromise, which includes the removal of farming compensation such as the agricultural diesel subsidy and motor vehicle tax exemption, is seen as detrimental to the competitiveness of German agriculture by the Farmers' Association.
- The energy sector is also facing changes with the Federal Government's plans to increase the CO2 tax for fossil fuels and cut climate-damaging subsidies, which could impact both farmers and household energy costs.
- In response to the Federal Constitutional Court's budget ruling, the traffic light coalition reached an agreement to close the billion-euro gap in the 2024 federal budget, with the aim to cut expenditures, even in sectors like agriculture and energy, leading to potential implications for farmers' associations and household budgets.
Source: www.stern.de
