BERLIN (dpa-AFX) - Farmers in Germany have once again earned noticeably less after good profits and continue to face difficult conditions around a year after the major farmers' protests. In the 2023/24 financial year that ended in June, company earnings fell to an average of 77,500 euros, according to the farmers' association. This was 29% below the record level of the previous marketing year. With the exception of pig farming, almost all farms suffered losses. The sector is calling for a change of course in agriculture for the federal elections.

Farmers' President Joachim Rukwied said in Berlin: "The engine is really stuttering." The mood in the industry is still depressed. High costs for energy, crop protection and fertilizer were causing problems for farms. And yields in the fields have been trending downwards for years, which is due to new pests and climate change - whether in wheat, rapeseed, beet or potatoes. And this is also reflected in the results.

"The only ray of hope" for pig farmers

The "only ray of hope" was pig and poultry farming, which recorded a plus for the second time in a row after a long dry spell - to an average operating profit of 148,000 euros. Among other things, investments still have to be financed from the result. Rukwied reported that there was an overall reluctance to invest, especially in buildings. The accounts of a total of 6900 farms were analyzed for the balance sheet.

The outlook is mixed overall, as the association made clear. The results for pig farming are likely to remain stable in the current marketing year, while dairy farmers could see a slight upturn. However, grain prices are below the previous year's level - in combination with a smaller harvest in 2024. A "market and price crisis" is evident in viticulture. Fluctuations on the markets and risks due to extreme weather are increasing.

Call for a change in policy

"We need a spirit of optimism," the farmer president demanded. And expectations are now focused on the early federal elections on February 23. A change in policy is needed to restore the competitiveness of German agriculture on the European market. Planning security and reliable framework conditions are key. "We haven't had that in recent years," criticized Rukwied, looking back on the period of government of the now defunct traffic light coalition.

The association is now bringing up a controversial topic that triggered nationwide farmer protests shortly before Christmas 2023 - the gradual end of long-standing tax breaks for agricultural diesel. What is needed here is at least an average tax refund, as is the case in Europe. In the case of EU requirements, there must also be "consistency" in national implementation instead of further requirements. Rukwied called for future prospects for animal husbandry in Germany.

Unusual appointment

There is an unusual constellation in this election: the President of the Bavarian Farmers' Association and Federal Vice President, Günther Felßner, is running for the CSU - and has already been declared "set" for the post of Agriculture Minister by party leader Markus Soder in the event of a Union election victory. In response to a question, Rukwied emphasized that the farmers' association is "politically neutral". As usual, it would not be making any election recommendations.

Rukwied explained that the development of supermarket prices is not clearly foreseeable. It will remain "exciting". In general, the higher the degree of processing of a foodstuff, the lower the price share of farmers. In the case of bread and loaves, for example, the price of wheat does not play a role in triggering price adjustments. Energy and labor costs are much more important issues. And if there are increases of a few cents per liter for farmers in the case of milk, these are not real price jumps either./sam/DP/stk