Germany’s agricultural sector faces a standstill, according to a recent report released by the German Farmers’ Association (DBV), raising critical questions about the long-term viability of rural economies and the efficacy of current agricultural policies. The DBV’s situational analysis indicates a stagnation of economic performance for the fiscal year 2024/25, with average operating results for full-time farms holding steady at €78,500 per operation – mirroring the previous year’s level. This apparent stability masks a more concerning trend: almost all farm types, excluding milk production, registered a decline in results.
Joachim Rukwied, President of the DBV, characterized the economic and agricultural political landscape as “extremely challenging”. He underscored a disconnect between farm operating results and the broader inflationary pressures impacting the national economy. “The operating results show a lateral movement and cannot keep pace with the general price increases” Rukwied stated. Critically, he asserted that the average income across farms is insufficient to adequately compensate for labor, capital and land.
The ongoing fiscal year is compounding these issues, with a significant drop in producer prices for key plant and animal products, coupled with rising labor costs, placing further strain on agricultural enterprises. This precarious situation prompts anxieties regarding the future of family farms and the potential exodus from the sector.
Rukwied is now calling for comprehensive structural political reforms to mitigate the consequences. He cautioned that without decisive action, a rapid structural shift threatens to weaken value creation in rural areas and stifle essential future investments. He specifically demands that policymakers establish reliable frameworks, foster competitiveness, reduce bureaucratic burdens and appropriately compensate farms for their contributions to climate protection, biodiversity and animal welfare. The call highlights a growing disconnect between the perceived value of agricultural practices contributing to wider societal goods and the economic realities facing farmers, demanding that politicians act swiftly to ensure the resilience and sustainability of Germany’s agricultural sector.
