Reduced taxes and increased loans: French government helps farmers affected by bad weather conditions

In the summer of 2018, France experienced several waves of drought at once, which affected the work of the farms. The weather has affected both culture and livestock feeds crops, writes “Agro-Center”.

In order to help farmers from all over the country, the French government immediately mobilized various mechanisms that allow farmers to improve cash flow, purchase feeds for animals, release additional feed resources and adapt to the difficulties of planting affected crops.

Back in July, France received the support of the European Commission and offered additional support measures for farmers affected by drought. The French government adopted a series of measures on both the national and European levels.

At the national level:
– a reduction of the tax on vacant land (TFNB). In 2017, the sum amounted to 18 million euros;
– a delay or facilitation payment of social security contributions to the Social Mutual Agricultural Fund (MSA);
– an initiation of an agricultural natural disaster scheme, which will allow compensating farmers who have lost their crops or funds due to climatic hazards: the recognition procedure has already been initiated in many departments, and the first dossiers can be found at the Committee on Agricultural Risk Management (CNGRA) in December.
– an introduction of an agricultural disasters regime.

At the European level
– an increase in the rates of advances on the PPP paid from October 16, 2018, which allowed strengthening the financial position of the affected holdings. 70% of direct aid amounts instead of 50% and 85% of ICHN amounts, instead of 75%, can be paid to a very large number of farmers in the total amount of 4.3 billion euros;
– an estimation of arable land for the production of feed and meeting the needs of other farmers, whose plant may experience difficulties due to bad weather conditions or drought;

In order to further protect farmers in France, a state-owned hail and frost insurance system is being proposed. In addition, the authorities believe that it is necessary to strengthen the stability of farms by adapting production systems and methods.