Commodity News

German Farmers Converge in Berlin for Subsidy Cut Protest

On Sunday, German farmers drove their tractors to Berlin ahead of a major protest calling for reconsideration of removing tax subsidies for agriculture.

Monday’s rally at the capital’s Brandenburg Gate would conclude a week of protests against the country’s government, with 3,000 tractors, 2,000 trucks, and 10,000 participants anticipated.

The protests have pressured Chancellor Olaf Scholz’s governing coalition due to challenges with resolving a budget issue and keeping right-wing influences in check.

At a disadvantage, the coalition decided to keep a tax rebate for new agricultural vehicles and plans a phase-out of an agricultural diesel subsidy.

However, with support from the opposition conservatives and far-right, farmers argued that the measures were insufficient to address their concerns.

Farmer Karl-Wilhelm Kempner stated that farmers would ‘die out’ without subsidies, which would increase food imports.

Amid fears of a radicalized political debate in Germany and potential violence during the protests, the government is adopting a peacemaking stance to ease concerns.

Finance Minister Christian Linder is set to speak at the protest, while coalition party leaders have invited demonstration leaders to negotiate.

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Last week’s protests and train strikes have damaged coalition parties in the polls and increased the far-right Alternative for Germany (AfD) party to record highs.

Scholz stated on Saturday that the government had heard farmers’ concerns and reached a compromise. He said they had considered farmers’ views and adjusted their plans, describing the agreement as a ‘good’ one.

Romanian Farmers Seek Aid on Cheap Ukrainian Grain Imports

Romanian farmers, meanwhile, called for quicker processing of subsidies and compensation for those impacted by drought or disruptions from the Ukrainian cereal imports.

In a Facebook post, protesters expressed their disappointment over losses in the last two years due to the significant amount of cheaper grains from the country.

Romania’s Black Sea ports, notably the Constanta port, have become vital transit points for Ukrainian grain after Russia blocked the country’s seaports.

Stressing the grave situation, farmer Danut Andrus said the current rules are measures they can no longer tolerate.

Andrus underscored difficulties in securing bank loans, stating they are deemed non-creditworthy and are unable to work effectively in Ukraine.

Demonstrators have pledged to continue until authorities recognize their concerns and prove they can govern the nation.

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