The dispute over agricultural diesel does not only affect agricultural policy. The Union has linked this to its approval of the Growth Opportunities Act. The government is now confident about relief for farmers.
The federal government wants to announce white smoke in a press release on Wednesday afternoon in the agricultural diesel dispute with farmers that has been simmering since December. We are talking about close and constructive conversations. The Green Federal Minister of Agriculture Cem Özdemir is quoted as saying: “We are united by the goal that agriculture is now relieved.” However, the aim of the press release is different: it is intended to clear the way for the so-called Growth Opportunities Act.
The addressee is the Union
Just three hours earlier, Chancellor Olaf Scholz had emphasized how important this is for Germany as a business location in his government statement in the Bundestag. But so far the Union has blocked the law in the Federal Council, where it will be voted on again on Friday.
As a prerequisite for their approval of the Growth Opportunities Act, the Union-led states are demanding that the gradual abolition of agricultural diesel subsidies decided by the traffic light be reversed. Or that there is at least adequate relief for farmers elsewhere.
The Growth Opportunities Act and the agricultural diesel subsidies have nothing to do with one another in terms of content. Nevertheless, the Union has been putting the traffic light under pressure for weeks by linking the two issues. The federal government’s press release – with the bold headline “Federal government and agriculture in close coordination on relief” – is above all a call on the Union to give up its resistance.
But is the content enough? The response from the German Farmers’ Association is more likely to lead to a negative verdict. He responded just 29 minutes later via a press release. Headline: “Farmers’ Association sees considerable need for more specification”.
Farmers react more soberly
Although the word “positive” is at least mentioned here in connection with the discussions, there is no talk of unifying goals. Instead, the farmers’ association’s reaction seems rather sober.
Farmers’ President Joachim Rukwied speaks of a “significant need for improvement” and, above all, of the fact that “the issue of agricultural diesel should not be lost sight of.” Which means something like: Agricultural diesel is far from off the table. From the farmers’ point of view, the federal government’s offers are far too vague for this.
And in fact, the federal government has not yet presented any concrete relief measures for farmers. In this context, it is stated that agricultural businesses do not have to comply with the obligation to set aside land again this year.
But the impetus for this actually came from the EU Commission in Brussels. Not making use of this would have clearly disadvantaged German farmers in European competition. In this respect, the federal government can hardly take responsibility for this.
No concrete relief
There is a lot of talk behind the scenes about all other topics such as reducing bureaucracy, tax relief or strengthening farmers in the value chain. However, there is nothing concrete yet and it will probably take a while before it actually happens. The federal and state governments have recently identified a total of 194 bureaucratic measures in agriculture that could possibly be dismantled. But this long catalog is currently being examined by the Federal Ministry of Agriculture.
And when it comes to tax relief, the federal government remains in announcement mode. Finance Minister Christian Lindner spoke on Wednesday about wanting to reintroduce the so-called tariff smoothing for agricultural businesses. When calculating income tax, not one tax year but several would be used, which would allow, for example, loss of income due to extreme weather to be better compensated. But that’s not a done deal yet either.
The outcome in the Federal Council is open
And so the question continues to arise in connection with the Growth Opportunities Act: Does the Union trust the federal government and therefore give up its resistance? Or will it stick to its line and not agree until farmers have received some form of relief?
The latter would mean that the Growth Opportunities Act would not be allowed to pass the Federal Council again this Friday.