The Federal Council should today pave the way for the abolition of the agricultural diesel subsidy. A defeat for farmers? The concessions made by politicians to the farmers are nevertheless massive.
Shortly before Christmas in the Chancellery: the heads of the federal government meet in a small group. Federal Chancellor Olaf Scholz, Federal Economics Minister Robert Habeck and Federal Finance Minister Christian Lindner are under pressure. There is a lack of money. According to the Federal Constitutional Court’s ruling, the planned budget is illegal and the government must save money. One proposal is on the table: remove the agricultural diesel subsidy.
The trio accepts the proposal, appears in front of the press, announces the austerity package – and thus triggers massive farmers’ protests. The first tractors hit the road in December. Federal Agriculture Minister Cem Özdemir asserts that he was not involved. He wants to fight to ensure that the refund of the energy tax on diesel for farmers is retained.
Many farmers had time to protest
That was only half successful. The federal government is quickly giving in and does not want to implement the subsidy immediately, but in three steps. In 2026 it really shouldn’t give back a cent. However, the government immediately scrapped its plan to abolish the vehicle tax exemption for agricultural vehicles.
The farmers’ protests are also so violent because the proposed cuts affect all farmers, regardless of whether they are large, small, medium, organic or conventional. The time of year is also likely to play a role in the protests. Many farmers have more time to protest in winter than at harvest time.
It was never just about agricultural diesel
But the farmers are not just concerned with agricultural diesel. The drop in agricultural diesel was the last straw in terms of bureaucracy, requirements and a lack of appreciation.
As a result of the farmers’ protests, a lot has already been siphoned off from this barrel. On the one hand, the gradual abolition of agricultural diesel and the preservation of the green license plate, i.e. the vehicle tax exemption for tractors etc. On the other hand, many other concessions are on the horizon.
De-bureaucratization: Measures on the way?
Shortly before the crucial meeting in the Federal Council on agricultural diesel, Federal Agriculture Minister Özdemir said he wanted to make documentation and recording obligations for farmers leaner. Concrete measures with the federal states should be implemented “as quickly as possible,” says Özdemir.
Legislative proposals lie fallow
The traffic light coalition is postponing a new fertilizer law and the regulation for a stricter material flow balance. The Fertilizer Act is primarily about stricter rules for farmers; when it comes to the material flow balance, farmers have to meticulously document almost everything. Which field was fertilized and when? And with what: manure, manure, compost or mineral fertilizer? And how much of it?
This puts many farmers under pressure and puts a strain on them. The fact that the traffic lights are now hesitating about these legislative proposals is fueling the hope of many farmers that things will not be as strict as announced.
The comeback of biofuels is considered certain
The farmers’ argument as to why agricultural diesel absolutely needs to be further subsidized: There are no alternatives. Electric tractors or hydrogen tractors are not available as standard.
However, it would be possible to use bio-diesel, i.e. fuel made from vegetable oil such as rapeseed. But there are two problems: Environmental associations criticize that the production of fuel alone is anything but CO2-neutral. According to criticism, huge areas of land that should actually be used for food production would be used up for this purpose.
That’s why the Greens wanted to bury biofuel by 2030. But in view of the farmers’ protests, Federal Environment Minister Steffi Lemke from the Greens is making a 180-degree turn. She said in January that it makes sense to use biodiesel for agriculture. A tax exemption for these fuels – which already existed – is now considered very likely.
Bye, bye Green Deal?
The farmers’ protests were never just German, but always European. At the beginning of February things are getting busy in Brussels. Black smoke pushes through the European Quarter. Angry farmers set fire to bales of hay in front of parliament and paralyzed the district with around a thousand tractors. They topple a statue. There can be no talk of peaceful protests.
At the same time, the EU summit is underway and Commission boss Ursula von der Leyen is seeking talks with the associations. She then, like many politicians of the time, expressed her understanding for the farmers’ concerns.
“I am very receptive to the message that farmers are concerned about the administrative burden,” von der Leyen said at the time. They “play an essential role in the European economy and society and their work contributes greatly to our food security and also to our way of life.” An ode to the farmers. Then she creates facts.
Pesticide law and Set-aside stopped
A few days later, Commission President von der Leyen personally withdrew the proposal for the pesticide law. A signal for the farmers according to the motto: Look, we hear you! According to the planned regulation, farmers in the EU should halve their use of pesticides by 2030.
Farmers in the EU should actually set aside four percent of their land for the benefit of biodiversity. As a result of the farmers’ protests, the EU is now urgently stopping one of the key measures of the Green Deal. Environmental groups are in shock.
“This is boomerang politics at the expense of agriculture, climate protection and nature,” says the environmental foundation WWF. The Nature Conservation Association (NABU) warns urgently against the immense reduction in nature and climate protection in the EU agricultural policy.
Long list of successes for the farmers
It is a long list of successes for farmers in Germany and Europe. Further concessions are also on the way: such as tax relief, fewer controls, exceptions to requirements, and tariffs on agricultural products from Ukraine. Farmers have recalled their mobilization power and politicians have responded.
However, this doesn’t just have to do with the protests. The European elections in June also play a role. Farmers are a core constituency, especially for conservative forces.