Representatives of most federal states did not keep their promises and did not fight in the Bundesrat to maintain state subsidies for diesel fuel for farmers. Months of protests achieved nothing.
- The vote that took place last Friday, March 22 in the Bundesrat decided the fate of state subsidies for agricultural fuel.
- The majority of members of the Federal Council – contrary to previous declarations – gave the government the green light on the issue of taxation of diesel oil for farms – we read in Agrarheute.
- Farmers who have been protesting for months feel cheated and betrayed by both politicians and trade unionists.
The position of the opposition CDU/CSU Union gave hope for maintaining fuel subsidies. This group called on the federal states to give the government an ultimatum and make their support for the currently key act on the conditions for economic growth conditional on the government maintaining fuel subsidies for farmers. Under the pressure of ongoing protests, most of the federal states agreed to this solution, which put the government on the fence regarding the law that is supposed to stimulate the German economy.
The headquarters relented
However, it then came to light that the German Farmers’ Union had been behind the farmers’ backs already in January this year. he “gave up” the demand to maintain agricultural fuel subsidies in exchange for transferring the funds to other agricultural support programs. The content of the letter that the largest trade union headquarters sent to the government on this matter was made public. In this situation, politicians in the federal states felt released from their words given to their farmers.
Nevertheless, before Friday’s vote, most federal states assured that they would fight either to maintain tax breaks on diesel oil or to negotiate the transfer of subsidies to other specific purposes requested by farmers, e.g. property tax relief, “flattened” income tax, subsidies for insurance, support for non-fossil fuels in agriculture.
Voting against farmers
However, as Agrarheute reports, at a key meeting of the Federal Council on March 22, most federal states voted in favor of the Economic Growth Opportunities Act, without prior agreement on specifics regarding other forms of support for agriculture. Politicians needed only vague declarations that the government would strive to maintain the competitiveness of German agriculture and reduce the fiscal burden on farmers.
Brandenburg’s request to withdraw the abolition of diesel subsidies for agriculture has been rejected. Only Bavaria voted against the Act on the conditions of economic development. Bavarian Chancellor Florian Herrmann (CSU) said that the federal government’s promises are “fiction and insolence” because farmers will lose EUR 440 million in fuel relief and in return will receive a fraction of this amount in other aid. However, Bavaria’s veto will not be enough.
Agricultural fuel without discount
However, the vote determined that, in accordance with the federal government’s plan included in the Budget Financing Act, the agricultural fuel subsidy will be reduced this year by 40%. (from 21.48 cents to 12.88 cents/l), and in 2025 by another 30 percent From 2026, farmers can no longer count on any discounts on the price of diesel fuel.
The president of the German Farmers’ Union, Joachim Rukwied, admitted that he was disappointed with the Bundesrat’s decision. He announced that the union would demand equivalent compensation for fuel subsidies. He stated that diesel oil for agriculture will remain a “hot” topic in the upcoming federal elections in 2025. The meeting of the Federal Council was accompanied by farmers’ protests, but they also feel cheated by the largest industry association.
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