The Minister of Agriculture, Annie Genevard, announced new financial support measures for farmers affected by drought during a visit to Auvergne. These measures include zero-interest loans to help farmers replenish their cash reserves, a proposal made by the FNSEA, the largest agricultural union in France. The loans could cover up to two billion euros, which farmers could use to purchase fodder and agricultural inputs. However, the implementation of this plan depends on the adoption of the 2027 budget, which remains uncertain due to the lack of a parliamentary majority.
Drought conditions have severely impacted French agriculture since spring, prompting agricultural unions to warn of a potential decline in farming activity. During the Livestock Summit on October 8, the minister confirmed the introduction of zero-interest loans totaling two billion euros. She also announced easier access to aid for GNR (Green Nitrogen Reduction) and fertilizers, and outlined aspects of the grassland insurance program. "The Casi emergency plan was not a final settlement," she said. "I understand the cash flow needs, especially for forage, but not only."
The government will cover the remaining interest on loans, effectively making them zero-interest, with the first disbursements expected in 2026. For 2027, this will require an amendment to the budget. Additionally, the minister introduced specific banking measures for new farmers, promising that the state will cover interest and additional costs if a bank grants a deferment of capital repayment. The release of 21 million euros from the rearmament fund is also planned to speed up payments to farmers. Tax procedures will be adjusted to ensure that the property tax exemption on unbuilt land (TFPNB) is properly passed on to farmers.
Regarding GNR, which has seen rising prices in early autumn, the minister announced the reopening of application windows for April, May, and June for those who missed the deadline. The government also plans to release 10 million barrels of diesel from strategic reserves, potentially reducing the price of non-road diesel by 12 to 18 cents. For fertilizer applications, the processing of invoices will be eased, allowing applicants to submit unpaid invoices or purchase orders to reserve a place in the queue, though the paid invoice must be submitted by the start of 2027.
French Government Announces Zero-Interest Loans for Farmers Amid Drought Crisis
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