French government promises €1B for drought-stricken farmers

PARIS — France will spend more than €1 billion to help its farmers cope with a summer of devastating heat and drought, French Agriculture Minister Annie Genevard said on Friday. The package aims to compensate farmers for their losses, prevent bankruptcies and ensure that agricultural production gets back on track, in particular to enable the purchase of seeds and fodder, the minister said. Between 30,000 and 35,000 farms, or about 10 per cent of French farms, “are in a precarious situation or at risk of becoming so,” Genevard warned. Three schemes account for the bulk of the government’s spending under the new plan. France will speed up payments under its “national solidarity” scheme designed to compensate for crop losses. It will be topped up to a total of €520 million, provided the country’s 2027 budget is duly adopted. An “agricultural recovery fund” of €235 million aims to provide targeted support for the hardest-hit and most vulnerable farms across the produce, cereal and livestock sectors. Finally, a targeted tax relief scheme on unbuilt land will cut €330 million in tax revenue for the state. The government is also considering extending a program helping farmers to purchase fertilizer and non-road agricultural diesel. Genevard also suggested that the retail sector could “play its part” by keeping price rises in check. Part of her plan is already funded for this year, but more cash will need to be allocated in next year’s budget, which is set to be presented by Prime Minister Sébastien Lecornu at the end of September. “This is new money,” Genevard said. The government is also expected to set out the details of a broader “recovery plan” for farmers, with key measures to be included in the 2027 budget. Lecornu recently promised a tax depreciation scheme for “projects aimed at the future of agriculture,” alongside other measures to “continue adapting agriculture to climate change.”