Germany’s agricultural sector faces a precarious outlook, with economic results stagnating in the 2024/25 economic year, according to a recent report by the German Farmers’ Association (DBV). The report, released Thursday, paints a picture of increasing fragility within a vital sector grappling with a complex interplay of economic pressures and political inaction.
While average profits for full-time farms stabilized at approximately €78,500 per operation – mirroring the previous year’s performance – a closer examination reveals a deeply uneven landscape. Nearly all farm types, bar those specializing in milk production, experienced a decline in earnings, highlighting vulnerabilities across the agricultural spectrum.
DBV President Joachim Rukwied characterized the situation as “extremely challenging” accusing policymakers of failing to adequately respond to the escalating crisis. He emphasized that the observed stagnation fails to keep pace with broader inflation, leaving many farms unable to adequately compensate for labor, capital and land. “The operating results show lateral movement and cannot keep pace with the general price increase” Rukwied stated, underlining the increasingly unsustainable conditions faced by many farmers.
The current economic year is exacerbating these concerns with a significant drop in producer prices for key plant and animal products, coupled with rising labor costs, further squeezing margins. This dynamic is fueling anxieties regarding the long-term viability of many farms and the potential for widespread exits from the industry.
Rukwied is now demanding a renewed focus on structural political reforms, warning that without decisive action, a rapid structural shift threatens to undermine value creation in rural areas and stifle essential future investments. He argued that policymakers must establish “reliable frameworks” to bolster competitiveness, reduce bureaucratic hurdles and appropriately recognize the vital contributions of farmers in areas such as climate action, biodiversity conservation and animal welfare – an implicit criticism of current subsidy models and regulations.
The DBV’s report acts as a stark reminder that the agricultural sector is not merely an economic engine but a critical component of Germany’s rural fabric and environmental sustainability. The call for reform is a signal of growing frustration and a challenge to the government to proactively address the sector’s needs before the consequences become irreversible.