The 2018 harvest report shows that the state of Schleswig-Holstein has been hit particularly hard by the consequences of the drought. The decline in the grain harvest here is 33.7% compared to the three-year average. According to estimates by the federal states, around 10,000 farms across Germany are so badly affected that their existence is at risk.
The Federal Minister of Agriculture classified the weather conditions of the past few months as an "exceptional weather event of national proportions" and proposed a federal-state aid program of around 340 million euros for farms whose existence is at risk. It is expected that 14 federal states will participate in a federal-state program.
Damages will be compensated at 50 percent for those affected and entitled. The federal and state governments will each pay half of this amount. The funds will be granted in the form of non-repayable subsidies. The corresponding administrative agreements on the federal and state aid measures should be in place by mid-September 2018.
Under what conditions is the aid granted?
The agricultural aid is based on the "National Framework Directive on the Granting of State Aid to Overcome Damage in Agriculture and Forestry Caused by Natural Disasters or Adverse Weather Conditions".
Affected farmers can submit an application for state aid to the relevant approval body. They must prove that they have lost more than 30 percent of their average annual production due to this year's weather conditions and are in need. However, there is no legal entitlement to financial assistance. The federal states can grant payments on account before a final assessment in order to facilitate rapid assistance.
What damages are compensated?
The funding program is intended to compensate for damage that is directly causally related to the adverse weather conditions. This also includes extraordinary expenses such as additional feed purchases in livestock farming, repair costs including the clearing of production areas and buildings as well as the repair of supply routes.
The total loss is made up of the sum of the loss of income and the damage to buildings, facilities and equipment, agricultural and forestry infrastructure, machinery and equipment as well as livestock and agricultural stocks. Insurance compensation is to be taken into account.
Dr. Johannes Badenhop