The German government has announced the full reinstatement of the agricultural diesel rebate, effective January 2026. The Federal Ministry of Agriculture confirmed the decision on Wednesday, stating that agricultural and forestry businesses will receive a rebate of 21.48 cents per liter of diesel. This measure is projected to alleviate the financial burden on the sector by approximately 430 million euros annually.
Federal Minister of Agriculture Alois Rainer (CSU) characterized the move as correcting a “significant policy error” made by the preceding government. He emphasized that the reinstated rebate provides crucial planning certainty for agricultural businesses and strengthens their competitive standing. Currently, agricultural operations benefit from a significantly reduced tax relief of only 6.44 cents per liter.
The standard diesel fuel tax rate currently stands at 47.04 cents per liter. With the full rebate in place, a typical operation is expected to receive around 2,790 euros per year, although this figure will vary depending on the size, type and management practices of the business. The tax relief will be administered through a retrospective relief process requiring businesses to submit an application.