New Tax Breaks to Save the Farming Industry?

New Tax Breaks to Save the Farming Industry?

Agriculture Minister Alois Rainer, a member of the Christian Social Union, is working on tax incentives to encourage farmers to switch to alternative fuels. In an interview with the Redaktionsnetzwerk Deutschland, Rainer stated that his goal is to take measures to increase the use of biofuels in agriculture during the current legislative period. He is already in contact with Finance Minister Lars Klingbeil to explore possible tax incentives.

Rainer emphasized the importance of alternative fuels in replacing fossil fuels, citing the limitations of electric motors in large agricultural machinery. He also confirmed that the diesel tax refund, which was partially introduced in 2022, will be fully reinstated from January 1, 2026. However, he stressed the need to avoid overburdening farmers, acknowledging the challenges they face.

Rainer expressed understanding for the farmers’ protests that took place a year and a half ago, criticizing the bureaucratic hurdles that the protests were aimed at addressing. “A living democracy must be able to absorb protests” he said, adding that the main issue in the agricultural sector remains the overburdening bureaucracy that hampers the work of farmers.

Furthermore, Rainer announced plans to expand the program for reorganizing animal husbandry, currently only applicable to pigs, to other livestock as well. He vowed to fight for a reasonable financing of the program, aligning it with societal and farmers’ expectations.