August 24, 2018
German farmers to get €340 million of state aid for drought-caused losses
Farmers in Germany who have suffered harvest losses of 30% or more due to the terrible drought season will get a total of €340 million (US$393 million) in state aid, which is only half of the estimated damage, according Agriculture Ministry, Julia Klockner during a press conference in Berlin, on Wednesday.
However,the proposed figure is well below the demand made by the German Farmers' Association of one billion euros (US$1.56 billion) in aid.
Klockner added that after assessing the latest data, her ministry calculated that damages caused by the continuous drought for the German agriculture sector amounted to a total of €680 million (US$786 million), with around 10,000 farms.
The Federal State will contribute half of the total amount to 16 German states, with the condition to qualify state-aid – registeringa 30% or more harvest loss – Klockner revealed.
She added, "The Federal government cannot pay for everything," the Minister stressed. "The numbers show that this year has tabulated the lowest yields for cereals since 1994." She also highlighted that the situation varies greatly from region to region.
The president of the farmers' association, Joachim Rukwied, released figures that put cereals yields in 2018 at 35.6 million tonnes. He explained that this is a drop of 26% as compared to the annual average between 2013 and 2017, with losses ranging from 50% - 70% in some regions.
Eight states, mainly in the north and east of Germany, are the region's most affected drought areas and have reported losses of up to three billion euros (US$3.47 billion), Rukwied shared.
He said that many farmers were in a "very bad" mood while classifying 2018 as a "very bad harvest year".
Particularly affected are animal feed grass productions, as well as corn, sugar beet and potatoes, Rukwied continued. Second and third cutting grass hay for cattle feed are severely affected, he specified, putting the animal food supply sector under great pressure and calling it a "huge problem".
As a result, dairy farmers are reducing their production while they are obliged to buy additional food supply for their cattle at a much higher price. "They are currently using animal feed grass initially stored for the winter feed and it is coming to an end," he explained, adding that this situation also puts the animal farming sector under pressure.
German farmers, as well as their EU counterparts, will also get support from the European Commission (EC).
Responding to a request sent by MEP Michel Dantin (LR, EPP), Agriculture Commissioner Phil Hogan confirmed that he was considering additional measures, including derogations on feed production, to help farmers in the EU cope with the drought of recent weeks.
On August 6, the EC decided to grant EU farmers more flexibility in implementing the green requirements in order to face alarming droughts across Europe, the executive said in an announcement.
Source: EURACTIV
