German farmers caught between acute protest and pent-up frustration
Published: Monday, Jan 8th 2024, 18:50
Volver a Live Feed
Overly euphoric business forecasts are not common among farmers anyway. Now, however, many are feeling very angry. What is behind the wave of protests in Germany against cuts in subsidies?
Tractors stand in a long column in front of the Brandenburg Gate in Berlin, with banners reading "If the farmer is ruined, your food will be imported". Many are venting their anger. "We farmers are fed up with being the bogeymen of the nation," grumbles one. That was in November 2019.
Now tractors are once again rolling along roads all over Germany in protest, and on Monday they will once again be rolling into the German capital. The reason for this is the government's sudden announcement of plans to cut diesel subsidies. However, frustration with agricultural policy has been building up for years on many farms, which have recently been able to stabilize after difficult times.
"Barrel brought to overflowing"
The plans from Berlin have "burst the camel's back", says Farmers' President Joachim Rukwied at the start of a whole week of protests. Excessive bureaucracy, rising costs and stricter requirements are a burden on farmers. "There is simply too much now. That's enough, it has to be taken off the table," he says.
In fact, the major protests in 2019 were already directed against new environmental regulations and fertilizer rules - while at the same time many supermarket prices were low. Farmers demanded more say and appreciation for their work.
The planned end of tax concessions for agricultural diesel after more than 70 years has now become a symbol - although in concrete terms it meant an average additional cost of around 3000 euros per year and farm, as the government made up of the SPD, Greens and FDP - the so-called traffic light coalition in Berlin - explains.
The reduction in the price of diesel fuel for farms, which has been granted since 1951, is "to be assessed as harmful to the climate" in terms of the sustainability strategy, according to the cabinet bill. After initial headwinds, including within the governing coalition, the abolition, which was initially planned in one fell swoop, is now to be extended to three years.
Expert: farmers' reaction exaggerated
"The vehemence of the current protests is completely exaggerated if you relate it to the cut in diesel subsidies," explains Alfons Balmann, Director of the Leibniz Institute for Agricultural Development in Halle.
The plans would be painful for most businesses, but bearable. They mean a loss of income of around one to three percent. "What lies deeper, however, is the great overall uncertainty that exists in agriculture."
The plans affect the industry, for which fluctuations are part of the business not only because of its dependence on the weather, in a generally more stable phase.
However, the farmers' association was pessimistic about the business outlook even before the government's plans were announced. What farms can achieve for their products has long been determined by fluctuating prices on the world markets. Higher costs for fuel, gas and feed have recently been added to this for many farms. And in fruit growing, the increased minimum wage is a competitive disadvantage, explains the association.
EU subsidies cushion the blow
European and national subsidies are also part of the farms' calculations to cushion such risks. Subsidies and payments account for an average of 45% of income, according to the German government's Agricultural Policy Report 2023 based on data for 2021/22 - almost 50% for large farms in the eastern German states.
The majority of this is accounted for by direct payments from EU agricultural funding, which are also linked to environmental requirements. The billions from Brussels are intended to secure the food supply and the preservation of landscapes and rural areas as a whole.
Nevertheless, the sector is undergoing structural change. The number of farms in Germany has shrunk to around 263,000 and market pressure from the large supermarket chains is generally high, even if farmers have recently been able to benefit from higher prices. In addition, there are increasing demands from politicians and consumers to produce more sustainably.
©Keystone/SDA
Spanish 
English 
German 
French 
Arabic