More than diesel prices: Six reasons why farmers are angry

More than diesel price
Six reasons why farmers are angry

By Volker Petersen
January 9, 2024, 4:00 p.m

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The farmers’ week of action has begun; in many places in Germany they are demonstrating with their tractors – and in some cases also blocking roads and motorway entrances. They are concerned about more than just the rising price of diesel.

Tractors are roaring around everywhere in Germany right now, except in the fields – angry farmers are behind the wheel, venting their anger. Complaints have been heard from farmers for years and decades. Nevertheless, the vehemence with which they are now reacting to the planned de facto tax increase on agricultural diesel is surprising – and how little they are appeased by the federal government’s concessions. At least they withdrew the originally planned vehicle tax for tractors and combine harvesters and extended the price increase for diesel over three years. But for many farmers it’s not about a few cents per liter of diesel more or less. You are dissatisfied with the overall situation.

The agricultural economist Alfons Balmann, however, told ntv.de that the federal government’s cuts plans do not threaten the existence of the country. “The actual causes of the protests are deeper. Many farmers are unsettled. Other subsidies are also at risk. EU funding has already been reallocated. The requirements for farmers have been increased and will have to be increased further, especially in the areas of climate protection, animal protection and biodiversity protection “This requires companies to make significant adjustments.” Here is a selection:

Disproportionate burden?

Farmers President Joachim Rukwied complains that farmers have to contribute a billion euros to budget savings. The farmers received support from the Munich IFO Institute. Its boss Clemens Fuest also speaks of a disproportionate burden. He also criticized the fact that the changes had been decided virtually overnight.

Rukwied also criticizes cuts in other areas, for example in the “joint task of agricultural structure and coastal protection”, the largest national funding pot. 300 million euros were cut there. A further 70 million euros were cut from the agricultural professional association, and the federal government’s “investment and future package”, another aid pot, was reduced from 150 million euros to zero.

But it is also true that farmers receive disproportionate benefits – four times what their share of economic output in Germany represents. On average, companies receive around 48,000 euros per year. Agricultural subsidies and aid make up the largest item in the EU budget; between 2014 and 2020 it was 38 percent. Between 2021 and 2027, 378 billion euros are to be spent. There is also help at the national level. In addition, farmers have recently made good money due to rising food prices.

Nevertheless, the angry farmers express fears about their existence. The agricultural economist Christian Henning from the University of Kiel pointed out to Capital.de points out that there is a wide range in farm income. “The bottom quarter of farms earn less than 14,000 euros, while the top quarter earns more than 63,000 euros per family worker.” For the lower quarter, farming is only a sideline activity anyway. Many farms are too small to survive in the future. On average, farms are 68 hectares in size. However, more like 200 hectares are required for “solid agriculture”.

The question of stables

The demands on animal welfare have been increasing in Germany for years – this is politically and socially desired. At the farmers’ rally before Christmas in Berlin, Rukwied said that in Germany stable capacity for 6.7 million pigs had been reduced in recent years, while in Spain a good nine million had been added. In previous interviews, the farmers’ president had also pointed out that meat from more complex production is more expensive and often remains on the shelf. But if farmers cannot enforce higher prices, then they have no incentive to finance the conversion out of their own pockets.

A commission made up of farmers, environmental and animal rights activists and scientists had been advising on this since 2019 and also recommended payments to farmers. Specifically, it was at least 1.25 billion euros per year, and from 2040 even four billion. In the summer of 2023, however, she put her work on hold because a majority did not see this included in the draft federal budget. The farmers are already demanding four billion euros per year in government aid for the renovation of the stables. However, the federal government has so far only pledged one billion.

Different requirements in the EU

Farmers can also sell their food on the European market. There are Europe-wide requirements that everyone must adhere to. But there are also national regulations. Farmers also see themselves at a disadvantage in this respect. Rukwied cites the minimum wage as an example. In Spain this is only half as high as in Germany. The price per ton of CO2 emitted also varies greatly in Europe, creating different conditions for farmers. Rukwied likes to point out that farmers are willing to leave flower strips on their fields, while this doesn’t happen elsewhere in Europe. You do something for the environment, but forego space. Rukwied also castigates EU regulations such as the “Standards for the Good Agricultural and Ecological Condition of Areas” (GLÖZ) as “bottom-ups” because they are not practical.

Trouble with the wolf

The wolf has been causing trouble for a long time. The Nature Conservation Association counts 184 packs, 47 pairs and 22 individual animals, which are mainly concentrated in northeastern Germany, from the North Sea to Saxony. Wolves are only found sporadically in the rest of Germany. However, they are a thorn in the side of many farmers because they kill sheep and other farm animals. The owners are compensated, but they can forego the sight of dead animals in the pasture and the bureaucratic hassle. Wolves are under strict protection and may only be hunted in exceptional cases. However, most people die in traffic. The farmers’ association is calling for protection of wolves to be relaxed. Their view: Wolves are popular in the cities because they are a success for biodiversity – but the farmers have to pay for it.

Food security

This catchphrase is something like the farmers’ final answer to all questions. Food security means that Germany and Europe are able to supply their own population with food. This has strategic importance. The pandemic and the war in Ukraine showed that you can fall flat on your face with borderless free trade. The farmers’ association is therefore calling for food security to be included as a goal in the Basic Law. The farmers’ argument goes like this: If you want Europe to be able to provide for itself, then you have to help the farmers.

Accusation of climate sinners and lack of recognition

Many farmers were offended by the fact that the discount on agricultural diesel was described as a “climate-damaging subsidy”, for example by the Federal Environment Agency. Because they don’t see themselves as climate sinners. In fact, they have met the climate protection target for their sector in 2022 – in contrast to transport or the building sector. Farmer representatives see themselves more as caretakers of cultural landscapes and emphasize the ecological value of pastures. In addition, it is not recognized that the farmers produce high-quality, regional food for the domestic market. It annoys many people when they are instead portrayed as climate sinners, subsidy skimmers or animal abusers.