Germany's farmers are expecting harvest losses because of the continuing heat and drought, and in the south, some crops could face "a total loss of yield," according to the president of the German Farmers' Association, Joachim Rukwied. At the same time, producer prices are low while energy and diesel costs remain high. "Farmers cannot hold out much longer under these conditions." Rukwied called for support, including a cut in the tax on agricultural diesel "until at least the end of November."
Speaking to the Redaktionsnetzwerk Deutschland (Friday editions), Rukwied said his association was anticipating a below-average harvest for cereals, "particularly wheat here, and for rapeseed." The trend for autumn crops also suggested "that we will have to reckon with considerable yield losses here as well." That applies, for example, to potatoes, vegetables and sugar beet, but also to grain maize and soybeans.
"In southern parts of Germany, this could amount to a total loss of yield," Rukwied added. The situation is somewhat better in the north, where there has at least been some intermittent rainfall in recent weeks. Crops there still look acceptable, he said. But the trend points to "below-average harvests" in the north as well. Another problem caused by the persistent drought, above all in southern Germany, "is that no more fodder is growing back."
The farmers' president takes a bleak view of the situation in agriculture overall. "The burdens are immense. I know colleagues who can no longer pay their bills for crop protection products and fertiliser and have to go to the bank," he said. "Some are falling back on their wives' savings or their life insurance."
Speaking on the broadcaster Phoenix, Rukwied called for political support. He named an increase in the EU fertiliser subsidy for Germany from 60 million euros to 180 million euros, along with bringing forward the payment of 80 percent of EU direct aid to farmers to October. "A third immediate measure would be to cut taxes on diesel significantly until at least the end of November. That would help farmers in the short term and bring relief."
The farmers' president was emphatic in demanding that the black-red coalition agreement be implemented in the agricultural sector. "What matters politically is that a tax-free risk equalisation reserve is introduced." This would allow a financial cushion to be built up for difficult years. Speaking to ZDF on Thursday evening, Rukwied said farmers also needed an exemption from the minimum wage.
Rukwied is pessimistic about the coming year: because many farms lack the financial means, too little fertiliser is currently being purchased, and it has also become considerably more expensive, he told Phoenix. "That will ultimately result in further declining harvests next year." There are also shortfalls in animal feed as a result of the below-average harvest. "In the worst case, that means farmers will have to reduce their livestock numbers."
Rukwied told ZDF: "We farmers have been seeing for some time that the climate is changing, that it is getting warmer and that extreme weather periods are increasing. That is why we have been adapting to this change for 15 to 20 years now." Farmers are already doing a great deal, he said, citing water-saving cultivation methods and "more resilient varieties, that is, more robust ones when it comes to heat and drought." But when conditions are "as extreme as they are this year, then we are to some extent helpless."
The German Raiffeisen Association (DRV) estimated on Thursday that losses in the cereal harvest would amount to around three million tonnes, with the resulting revenue losses for farmers exceeding 600 million euros. Guido Seedler, the DRV's cereal market expert, explained that "on balance it is a still adequate, albeit below-average, harvest." Supply is not at risk. Nor are rising consumer prices expected for bread, rolls and other baked goods, since the share of cereal costs in the final price of baked goods is very small.