Overview

• High input costs for seed, fertilizer and crop protection combined with falling grain prices have made grain production a loss-making enterprise, according to the Saxony Farmers’ Association.
• Last fiscal year saw farm incomes worsen significantly, although gains in milk, oilseed and pork sales secured the sector’s second-best performance in 20 years.
• Farmers anticipate an average harvest this year, but critically low subsoil moisture is raising concerns about future crop resilience.
• Minister Georg-Ludwig von Breitenbuch has urged streamlined subsidy frameworks, reduced regulation and adequate financing to stabilize the agricultural sector.
• The government will continue providing €12.5 million annually in compensation payments for disadvantaged areas to support local producers.