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  • 2 years ago
German farmers have kicked off a week of nationwide protests in response to plans to phase out agricultural diesel subsidies. Yet, not everyone believes the protests are justified.


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Transcript
00:00 Every machine on Peter Keim's farm in the Haveland district near Berlin is powered by a diesel engine.
00:07 He and his employees manage a business with 1000 hectares of farmland and 170 dairy cows.
00:14 When he refuels his five tractors, it gets expensive. This tractor has a 480 litre tank.
00:21 So far, he has received around 21 cents per litre as a refund from the government.
00:27 We consume 120,000 litres of diesel per year and this agricultural diesel refund means a reimbursement of 25,000 euros for us.
00:40 This subsidy is supposed to be gradually reduced and discontinued by 2026.
00:46 But Keim and other farmers don't want to accept that and are protesting nationwide.
00:52 I have to protest because the impact is significant. If the proposed law comes into effect, it would truly be a severe cut for us.
01:02 This local demonstration is supposed to be just the beginning of more and bigger protests.
01:08 Farmers want to block highway ramps and paralyze entire cities.
01:12 I see in our family how tough it is to keep our business running. And if you don't have additional income, it becomes increasingly difficult.
01:24 If we lose the subsidy now, I really don't know how we'll make ends meet.
01:29 The younger generation is afraid. Many are asking, will we even get a job later on if the law is implemented as planned?
01:38 That's why I'm here to protest.
01:42 We already received fewer subsidies than four or five years ago and this planned cut really endangers our farms.
01:49 Agriculture subsidies are commonplace. German farmers receive around 300 euros from the EU budget per year and hectare.
01:57 The end of diesel subsidies would only account for 5% of all the subsidies farmers get, says agricultural economist Alfons Balmann.
02:05 He considers agricultural diesel subsidies outdated.
02:10 For agricultural businesses, these cuts are bearable. Farmers have earned very well in recent years.
02:18 Besides, they are relatively strong in equity, so they can actually cope with setbacks.
02:28 In capital-intensive agriculture, every penny matters, the farmers say. They fear they won't be able to compete with other EU countries.
02:37 Currently, only three EU countries have higher taxes on agricultural diesel than Germany, but 18 EU countries have lower taxes.
02:46 German farmers feel disadvantaged.
02:50 We produce our products such as bread wheat, barley, winter rapeseed at world market levels.
02:58 There's a world market price and if we have a production disadvantage due to the lack of diesel reimbursement, we cannot compete anymore.
03:11 No future without us. That's what the farmers are saying.
03:16 There are around 250,000 farms in Germany. The Haveland farmers hope that many others will join them on German streets this week.
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