News Germany
Slightly better mood among German farmers
The mood among German farmers improved slightly in the past quarter. This is apparent from the results of the economic barometer of the German farmers' union DBV. The main reason for optimism is the relatively high commodity prices at the moment.
In the long term, German arable farmers in particular are less positive. Confidence in this sector has therefore decreased compared to the December survey. "The new insect protection law will further aggravate the situation of farmers," said Joachim Rukwied chairman of the DBV in a press release. "The law jeopardizes the earning potential of family businesses and seriously damages the current cooperative approach." The uncertainty about the direction and implementation of the new CAP also does not help confidence in the sector.
Willing to invest
The willingness of farmers to invest has increased considerably. This is mainly due to a program of the German government to promote environmentally and climate-friendly techniques. This mainly results in extra interest in spraying and fertilizer technology. The total investment budget is €1,2 billion, according to the study. That is 200 million more than the same period last year. The willingness to invest more is accompanied by improved liquidity on many companies compared to December. Nevertheless, the financial situation of approximately 1 in 5 companies remains tense to very tense.
Jurphaas Lugtenburg
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