Germany's coalition government strikes deal on farmer relief package

Numerous snow-covered tractors stand on the Strasse des 17 during protest against planned cuts in subsidies by the German government, including for agricultural diesel. Germany's three-party coalition government has agreed on a package aimed at boosting the country's agricultural sector, party leaders announced in Berlin on 25 June. Kay Nietfeld/dpa

Germany's three-party coalition government has agreed on a package aimed at boosting the country's agricultural sector, party leaders announced in Berlin on Tuesday.

The package includes tax relief for farmers, a reduction in bureaucratic requirements and measures to strengthen the position of farmers in deals with food distributors and retailers.

The first parts of the package are set to be passed by the lower house of Germany's parliament, the Bundestag, next week, the party leaders said.

Implementing other parts of the proposed package will be the responsibility of ministries of Germany's 16 state governments.

The German government had pledged relief for the agricultural sector by the summer in response to widespread protests by farmers against the phase-out of diesel fuel subsidies for the sector.

Christian Dürr, the parliamentary leader from the pro-business liberal Free Democrats (FDP), said that farmers had rightly expressed their displeasure at the beginning of the year.

"As a coalition, we agreed to launch a major relief package for farmers," Dürr said.