France: Grain producers demand government aid

Francja: producenci zbóż domagają się pomocy rządowej

AGPB: There is a risk of crop failure

The Association of Grain Producers (AGPB) expects an emergency aid program from the state in the near future. It should include tax relief, full compensation for farmers with crop insurance and deferral of payment obligations.

In France, grain farmers have called on the government for support for this year's harvest. All practical assessments have confirmed fears, explained AGPB president Eric Thirouin. There is a risk of a "catastrophic collapse of the harvest." According to Thirouin, the total volume of grain harvested could remain more than 15 percent below last year's harvest.

In particular, the AGPB considers it possible that French soft wheat production this year could only reach 26 million tonnes. The association predicts a potential loss of revenue of more than €1.6 billion. The statistics service of the French Ministry of Agriculture (Agreste) estimated on July 1 this year's soft wheat production at 29.65 million tonnes. This would be 15.4% less than in 2023.

Comprehensive Emergency Aid Programme Expected

AGPB is currently looking to the state for a timely emergency aid program. It should include tax breaks, full compensation for farmers with crop insurance and a deferral of payment obligations. The association wants its own special allowance for large companies and an exemption from social security contributions.

In Paris, the demands have so far been treated with caution. Agriculture Minister Marc Fesneau, like the rest of the government, will serve only temporarily after the parliamentary elections. The agriculture ministry said the state remains vigilant and will support farmers.

Support for exceptionally large losses

The situation varies greatly regionally. The ministry is in close contact with insurance companies to get a better picture of the situation. According to the ministry, farmers can count on support from the state in the event of exceptionally high losses. Additional funds are to be released if necessary. The final assessment will be made after the harvest.