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Farmers up in arms against the end of diesel subsidies

Massive resistance announced

Farmers up in arms against the end of diesel subsidies

German farmers are outraged: they are doubly affected by the government's austerity plans. "We farmers will send a first clear signal to the coalition with the traffic light system on Monday," says Farmers' President Rukwied. Numerous farmers want to protest with their tractors in Berlin.

Farmers want to mobilize in Berlin this Monday in protest against the planned abolition of tax concessions by the traffic light coalition. Under the slogan "Too much is too much", a rally is planned for late morning at the Brandenburg Gate. Federal Agriculture Minister Cem Özdemir from the Green Party is also expected to speak.

The German Farmers' Association is demanding that the government withdraw its plans to abolish regulations on agricultural diesel and vehicle tax exemptions in order to save money in the federal budget. According to the association, numerous tractors will also roll into the capital in protest. The farmers' association has also called for the demonstration nationwide via its state farmers' associations. Farmers' President Joachim Rukwied and other industry representatives want to make their displeasure at the plans clear at the rally.

"We farmers will send a first clear signal to the traffic light coalition on Monday," said Rukwied. The proposals on agricultural diesel and vehicle tax must be completely withdrawn. "If not, there will be massive resistance from January. We will not put up with this," emphasized the farmers' president. According to the association, agriculture would be deprived of almost one billion euros.

Up to now, farms have been able to get a partial refund of the energy tax on diesel. In addition, agricultural and forestry vehicles are exempt from vehicle tax. Özdemir had already expressed criticism of the plans, which are based on an agreement between the coalition leaders to make savings in the 2024 budget. He warned of a disproportionate burden if both the agricultural diesel subsidy and the vehicle tax exemption were to be abolished. This would be a competitive disadvantage compared to other countries. The government has justified the plans with the reduction of climate-damaging subsidies.

Farmers' profits reach record level

Finance Minister Christian Lindner from the FDP, who helped to approve the plans last week, signaled a willingness to talk. "I am open to alternatives," he told Redaktionsnetzwerk Deutschland on Saturday.

According to industry figures, the earnings situation in agriculture has recently improved. In the 2022/23 financial year, which ended in June, the average profit of farms rose to a record level of 115,400 euros - an increase of 45 percent compared to the previous year. However, in view of falling prices for grain, oilseeds and milk, the farmers' association had already expressed pessimism about future business prospects before the traffic light plans were announced.

A large demonstration with thousands of farmers from all over Germany and a long convoy of tractors also took place in front of the Brandenburg Gate at the end of 2019. At that time, farmers took part in nationwide campaigns to demand a greater say in new environmental and animal welfare regulations and more appreciation for their industry.

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The German Farmers' Association has criticized the Traffic light coalition's budgetary policy, specifically their plans to abolish tax concessions on agricultural diesel and vehicle tax exemptions. Martin Lindner, Finance Minister from the FDP, has signaled a willingness to discuss alternatives.

Cem Özdemir, the Federal Agriculture Minister from the Green Party, has expressed concern about the potential disproportionate burden on farmers if both the agricultural diesel subsidy and the vehicle tax exemption were to be abolished. He argued that this could create a competitive disadvantage compared to other countries.

Despite the improved earnings situation in agriculture, with average profits reaching a record 115,400 euros in the 2022/23 financial year, numerous farmers have expressed their dissatisfaction with the traffic light coalition's plans and have announced plans to protest with their tractors in Berlin.

Source: www.ntv.de

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