Germany drought hits harvest; farm loans rise to €500m

Germany’s summer drought has hit harvests and pushed farming into what Agriculture Minister Alois Rainer called a “massive nationwide crisis”, prompting the government to expand emergency lending for producers.

Rainer said on September 2 that the public lending programme for farmers would increase by €300 million, bringing the total to €500 million ($580 million). He said he was also negotiating with the finance ministry on a separate support scheme.

Germany’s agriculture ministry said it expected a grain harvest of around 37 million tonnes, more than 2% below the average of the past five years. It said maize and sugar beet crops were hit particularly hard, with output for both expected to fall by 16% compared with that average.

“This is not only about tonnes or hectares,” Rainer said, pointing to the condition of farms and high production costs, including fuel prices. He said the support was needed to prevent a “structural breakdown” and added that “Germany’s food security” was at stake.

Heat and drought affected much of Europe this summer, contributing to higher mortality, wildfires and crop damage.