“Wrong Calculation”

Farmers are up in arms despite 100 million euros for agricultural diesel

The farmers’ protests in Vienna could continue in the future.(Bild: Rene Hemerka)

It sounds like a political breakthrough: The reintroduction of agricultural diesel for 2027 and 2028 is intended to ease the burden on agriculture. The total subsidy amounts to 100 million euros, spread over two years, but for the ÖVP Farmers’ Union, this “success” could backfire …

A total of 100 million euros, spread over two years—that is, 50 million euros annually—is what Finance Minister Markus Marterbauer (SPÖ) is set to allocate for the core constituency of coalition partner ÖVP. The return of agricultural diesel is primarily intended to appease the Farmers’ Union. As is well known, following wild tractor protests in Vienna, the minister is under considerable pressure to act. “A strong signal to local farmers,” its representatives, such as President Georg Strasser, are therefore celebrating. 

But the math quickly reveals another side of the story. Austria has approximately 1.33 million hectares of farmland. If the subsidy amount is distributed roughly and evenly, this results in a calculated relief of about 37.60 euros per hectare per year. It is precisely these figures that undermine the political narrative of the “key relief measure.”

Totschnig & Co. face threats of new protests
For what sounds like a lot of money in budget speeches shrinks, when broken down, to amounts that many farms are unlikely to perceive as a noticeable relief. The criticism from the field is correspondingly clear. Ernst Tschida, the figurehead of the farmers’ protests, also points out that such sums fail to address the reality faced by many farms. The structural problems—low producer prices, rising costs, and growing bureaucratic pressure—would not be addressed in the slightest. If there is no movement from agricultural leaders, he promises further protests: “Farmers will fight for their survival!”

The farmers’ protests in Vienna could continue in the future.(Bild: Rene Hemerka)

Whether it’s 20, 30, or 40 cents less per liter, the structural problems remain. Political decision-makers must finally understand this.

Bauernführer Ernst Tschida

Bild: Bündnis Zukunft Landwirtschaft

Added to this is the experts’ assessment: When asked by the “Krone,” WIFO agricultural economist Franz Sinabell emphasizes that any relief would, in principle, have an impact on income. At the same time, however, he significantly puts the effect into perspective within the overall structure of agriculture. What matters most are not individual cost items like diesel, but above all the development of agricultural prices. Even small price fluctuations in agricultural products would have a much greater impact on income than this subsidy.

Structural problems will remain
This brings the agricultural diesel debate back to a familiar pattern: politically, a visible volume is presented, but economically, it breaks down into comparatively minor effects per farm.

Society’s enormous and often unrealistic expectations do their part to make many farmers lose their enthusiasm for their work.

Franz Sinabell, WIFO

Bild: Zwefo

Conclusion: What is sold as a major relief turns out, upon closer inspection, to be a measure in the low double-digit euro range per hectare per year—too little to solve structural problems, and too little to sustainably alleviate the growing dissatisfaction in the agricultural sector.