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Germany Declares Agriculture Crisis as Drought Cuts Harvests

The government pledged about €1 billion in emergency liquidity to try to stop farm insolvencies.

Overview

  • The federal harvest report released on Wednesday, September 2, 2026, showed Germany's cereal crop at about 37.4 million tonnes, a 7.3 percent fall from last year and sharper drops for winter wheat and rapeseed.
  • Agriculture Minister Alois Rainer announced a roughly €1 billion support package that raises the Rentenbank loan volume to €500 million, creates a second low‑interest liquidity programme, assigns €60 million of EU fertiliser aid as hectare payments, and plans a one‑off increase in direct payments for 2027.
  • Representative farming groups called the measures too small and too slow and pressed for immediate cash, a larger fertiliser fund and earlier advance payments to cover autumn production costs.
  • Losses are highly uneven: maize and late‑maturing crops were hit hardest with regional shortfalls, Mecklenburg‑Vorpommern's rapeseed yields are well below average and many southern farms face severe fodder shortages after using autumn reserves or culling animals early.
  • Rising diesel and fertiliser costs raise the risk of insolvency for some family farms and have intensified a policy debate over whether aid should be short‑term liquidity or tied to long‑term climate‑resilience measures.