The German government has decided to reinstate the agricultural diesel fuel subsidy in full, effective January 1, 2026. The announcement was made Wednesday by the Federal Ministry of Agriculture.
The decision will see agricultural and forestry businesses receive a reimbursement of 21.48 cents per liter of diesel, representing an annual relief of approximately €430 million for the sector.
Federal Agriculture Minister Alois Rainer (CSU) stated that the move corrects what he described as “one of the largest policy errors” made by the previous governing coalition. He emphasized that the reinstated subsidy will provide crucial planning certainty for businesses and strengthen their competitiveness. Currently, agricultural businesses receive a tax relief of only 6.44 cents per liter.
The standard diesel fuel tax rate is currently 47.04 cents per liter. With the full subsidy, an average farm is projected to receive approximately €2,790 annually, dependent on size, type and management practices. The tax relief will be administered through a reimbursement process, requiring businesses to submit applications.
