The Government Authority will permit agricultural producers to stabilize their earnings.
In the bloom of spring, German farmers rise up in protest. The administration responds in July by bolstering the agricultural sector. This move allows for flexible profit taxation in the future and fortifies the farmers' stance against the retail trade. The Bundesrat grants its approval to this package.
The Bundesrat endorses the federal government's agricultural reform, which aims to further assist farmers. A bulk of federal states' representatives passed a trio of laws, ratifying the administration's response to the year-long farmers' uprising from the end of last year.
The package incorporates a profit tax softening measure: incomes can be averaged and taxed over a three-year span instead of taxing each year's profits individually. In situations of significant profit fluctuations, this can result in reduced taxes. Primarily, small and medium-sized agricultural and forestry businesses are influenced by unstable profits due to climate change's impacts, as suggested in the legislative summary.
Farmers Gain Advantage Over Retail Trade
Regulations governing the food retail trade also undergo alterations, aiming to enhance farmers' position. They receive protection from predatory business practices like prolonged payment terms. The legislative package was approved in the Bundestag at the start of July and can now be enacted.
"We're strengthening farmers in the market through the actions approved in the Bundesrat today," stated Federal Minister of Agriculture Cem Özdemir. With the profit tax softening, "the businesses can plan better, which holds significant relevance in these recent years marked by unpredictable weather patterns."
However, Agriculture Minister of Saxony-Anhalt, CDU politician Sven Schulze, voiced concerns in the Bundesrat, specifically that not all businesses gained from the new depreciation conditions - like cooperatives and stockholder companies. "It's imperative to promptly rectify this issue if we seek to genuinely relieve agriculture," stated Schulze.
The Commission, overseeing agricultural policies at the European Union level, expresses support for the changes made to Germany's agricultural sector. Recognizing the benefits of the profit tax softening, The Commission sees potential for similar measures to be implemented across the EU to assist farmers facing climate change challenges.
