Help for farmers
Agricultural diesel will be 20 cents per liter cheaper
On Wednesday, the German government launched a relief package worth around 300 million euros for agriculture and forestry. This is intended to provide farmers with a relief of around 20 cents per liter of diesel, as well as area-related support in 2024 and financial incentives for investments in animal welfare-friendly stables.
Apart from the diesel engine, there are currently no alternative drive options in agriculture, Totschnig said, explaining the support for diesel. The CO₂ pricing has no steering effect in this sector, but only represents an additional burden.
Operating and fuel costs would currently remain at a high level, but at the same time farmers' incomes would fall, said Agriculture Minister Norbert Totschnig (ÖVP) in the press foyer after the Council of Ministers meeting. The aim is to guarantee a sustainable food supply.
A total of 209 million euros will be made available for agricultural diesel for 2024. This is intended to provide relief of 20 cents per liter of diesel - consisting of tax relief and the CO₂ price rebate. In detail, the reimbursement of the CO₂ price for the years 2022 to 2025 is endowed with 134 million euros. According to the Ministry of Agriculture, a further 75 million euros are available for the agricultural diesel reimbursement - from the second half of 2023 to the end of 2025.
In addition, 50 million euros each are earmarked for a soil management contribution and a package of special funds for greater animal welfare in 2024, according to Totschnig. A focus is to be placed on pig farming in order to make the switch to more animal-friendly husbandry particularly attractive.
Decision in the upcoming plenary session
According to Totschnig's office, the implementation of the agricultural diesel is to be submitted to the National Council on Wednesday by means of an amendment and will be decided in the next plenary session. The CO₂ rebate is also to be implemented by means of an amendment, and the decision is therefore already planned for the plenary session on Wednesday.
Farmers' income down in 2023
Farmers' incomes fell in 2023 after very high growth in the previous year. Factor income per worker fell by 21.5 percent in real terms in 2023 compared to the previous year, according to Statistics Austria. According to the "Green Report" - which shows the average income of farms - declines in the range of five to 15 percent were recorded between 2012 and 2015, before profits increased by just over ten percent in 2016 and 2017. A renewed decline in 2018 was followed by a period of stagnation, and in 2021 there was an increase of 15 percent for the first time again. Due to higher producer prices, there was a strong increase of 42% in 2022.
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