Scholz to meet with agricultural group on breaks for German farmers

German Chancellor Olaf Scholz waits for the start of the German Cabinet meeting in the Chancellery. Michael Kappeler/dpa

A commission of German agricultural leaders and experts are set to meet Chancellor Olaf Scholz on Thursday to discuss possible measures to ease financial strains in the sector, following weeks of angry protests by farmers in the country.

The demonstrations over the winter were triggered by plans by Scholz's government to cut diesel fuel subsidies for farmers as part of a broader package of budget cuts and tax hikes.

The agricultural commission is expected to propose other relief measures to help offset the diesel subsidy cuts and make life easier for Germany's farmers, who have complained of increasing preasures from regulators and difficult market competition.

Scholz's coalition has held out the prospect of easing bureaucratic requirements and tax regulations on the agricultural sector.

The coalition, however, stuck with plans to push through the diesel subsidy cuts. The subsidies will now be phased out over the course of several years.

The proposals to aid farmers from Scholz's coalition include dropping an EU requirement for farmers to leave 4% of arable land in unproductive use, new tax rules that would allow farmers to offset profits in one year against losses in another, relaxed record-keeping rules and measures to strengthen the hand of farmers in price negotiations with major buyers like wholesalers and grocery chains.

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