Previously, farmers and foresters were able to claim a tax refund of 21.48 pence per litre of diesel.
What does this mean for farmers? The planned cuts will result in a loss of income of several thousand euros per year and farm, with larger farms often losing five-figure sums. For many farmers, it will simply no longer be worthwhile to continue farming if the tax exemptions are abolished. Over several years, the average income of agricultural businesses was between €40,000 and €50,000, depending on weather conditions. This is not much when you consider that often the whole family has to work seven days a week and that extreme weather scenarios such as drought or flooding can lead to drastic losses. The Number of agricultural holdings has decreased by 35,600 in Germany over the last ten years. This means that an average of 3,560 farms have closed down permanently each year.
Critics of the subsidy cuts fear further farm closures on a significant scale.
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