French government promises €1B for drought-stricken farmers
The agricultural sector has been hit hard by this summer’s heatwaves and drought.
France plans to allocate over €1 billion to assist farmers affected by a summer of extreme heat and drought, according to Agriculture Minister Annie Genevard. The multi-faceted package seeks to compensate farmers for losses, avert potential bankruptcies, and restore agricultural production, particularly to enable the acquisition of seeds and fodder. Between 30,000 and 35,000 farms, or roughly 10% of French farms, are in precarious positions or at risk of deteriorating further, warned Genevard.
The primary elements of the government's spending plan are three schemes: an expansion of the "national solidarity" program to compensate for crop losses, an agricultural recovery fund of €235 million to provide targeted support to the most vulnerable farms, and a tax relief scheme on unbuilt land, saving the state €330 million in revenue. The government is also contemplating extending a program to assist farmers in purchasing fertilizer and non-road agricultural diesel.
Genevard suggested that the retail sector could contribute by limiting price increases. Of this plan, part is already funded for the current year, but additional funds will be required for the upcoming budget, which Prime Minister Sébastien Lecornu is scheduled to present at the end of September. Genevard emphasized that this is new money.
Furthermore, the government is anticipated to unveil the specifics of a comprehensive "recovery plan" for farmers, with key measures to be incorporated into the 2027 budget. Lecornu has previously pledged a tax depreciation scheme for projects aimed at the future of agriculture, along with other measures to "continue adapting agriculture to climate change."
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