Minister Klockner

'No subsidy for German investors'

26 March 2018 - Niels van der Boom

If it is up to the new German Minister of Agriculture Julia Klöckner, investors in agricultural land no longer have to count on support from the Common Agricultural Policy (CAP). Company size may also play a role.

Julia Klöckner is currently discussing the future of the CAP in Brussels. She is a strong supporter of the 2 pillars that support agricultural entrepreneurs. "The social pressure on farmers is enormous. Their task now goes beyond simply producing food," she says in a statement interview with the Frankfurter Allgemeine newspaper.

Subsidies must go to farmers. Not to hedge funds

Taking up nature management together
"Our farmers also have to manage nature and the landscape, matters of general interest. This costs money and the farmers should not have to pay for it alone," she believes. The current policy has a fixed hectare allowance, regardless of the company size. Whether the minister wants to get rid of this, she's up to. "Brexit does not make it any easier to get the CAP funded. At least the money should go to the farmers. Not to hedge funds," she said in the interview.

Subsidy according to company size is an issue to be discussed in Brussels. "The larger the company, the lower the costs per hectare. Agricultural companies have an important managerial role in the countryside, regardless of the company size. That costs money. A healthy countryside prevents the exodus of rural areas."

No subsidy for investors
Investors are also active in Germany to buy agricultural land. Some East German states are now working on rules to combat this. French President Emmanuel Macron language is more likely to oppose similar practices. Klöckner is also firm in her opinion: "In all cases I want to support progressive agricultural entrepreneurs, but as far as I am concerned, investment funds do not need to receive a hectare premium."

She is also clear about the discussion surrounding crop protection products. "Bees are vital. In Germany they yield €2 billion a year by pollinating crops. It is clear to me: if a product (scientifically proven) is harmful to bees, then it should be banned. On glyphosate "We are pursuing a reduction strategy. In the meantime, use has already been reduced by 30% in 5 years. Precision agriculture helps us with further reductions. Alternatives are also being sought."

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Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.

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