After Record-Breaking Damage

No “whatever the cost” approach to drought aid

The office of Finance Minister Markus Marterbauer (SPÖ) believes the Ministry of Agriculture has a responsibility to address the drought damage.(Bild: Krone-Collage/APA/HARALD SCHNEIDER, APA/BARBARA GINDL)

Extreme heat has caused one billion euros in damage to the agricultural sector—but the Ministry of Finance currently sees little room for a relief package. “For good reasons, there will be no ‘whatever the cost’ policy,” according to a statement from the office of Finance Minister Markus Marterbauer (SPÖ). The Ministry of Agriculture, on the other hand, also wants to support uninsured farmers. 

“In principle, only support that stays within the budget is an option,” the ministry said on Monday. According to the statement, “financial reallocations within the Ministry of Agriculture” are conceivable. In any case, “sustainable and long-term solutions for climate protection” are necessary.

The call for support measures for agriculture comes from the ÖVP; the Ministry of Finance is therefore awaiting concrete proposals from the ÖVP-led Ministry of Agriculture. 

The office of Finance Minister Markus Marterbauer (SPÖ) believes the Ministry of Agriculture has a responsibility to act in light of the drought damage.(Bild: Krone-Collage/APA/HARALD SCHNEIDER, APA/BARBARA GINDL)

In light of the extensive drought damage, the NEOS are calling for faster progress on climate and soil protection. “The more land is paved over, the hotter it gets,” explained NEOS climate and environment spokesperson Michael Bernhard. Land consumption must be drastically reduced.

NEOS: “Whatever the cost” is the wrong approach
NEOS forestry spokesperson Karin Doppelbauer cautioned that “prevention is better than compensation.” Agricultural businesses also need reliable information about how the climate in their region is changing and how water availability will develop in the future. “Only then can necessary adjustments be planned for the long term and successfully implemented.” NEOS emphasized, however, that farms that have invested in insurance are no worse off than those that have actively opted out of such insurance. “‘Whatever the cost’ is the wrong approach,” said Doppelbauer.

Chancellor Hints at Drought Relief Package
Last week, Federal Chancellor Christian Stocker (ÖVP) promised farmers not only liquidity measures but also “compensation for damages.” The drought relief package is to be developed jointly with the federal states and in coordination with the Ministry of Finance. However, drought damage to agricultural crops is not eligible for compensation from the federal states’ disaster relief funds if the damage was insurable.

All crops have been affected by the drought, particularly grains, corn, potatoes, and pumpkins.(Bild: APA/HARALD SCHNEIDER)

Totschnig: Funding Also for Uninsured Farmers
According to Agriculture Minister Norbert Totschnig (ÖVP), the current drought damage assessment by the hail insurance provider is “a key basis” for further decisions by the federal government and the states regarding the planned aid package for farmers. On Monday afternoon, Totschnig hosted a “roundtable” on “Drought in Agriculture.” Prior to the meeting, he emphasized that aid funds would also be available for farmers who had not taken out drought insurance. 

Totschnig pointed out that the Disaster Relief Fund Act stipulates that insurable risks cannot be covered by the disaster relief fund: “We therefore need a support package for all family-run farms.” This also involves “support for farms that have not taken out insurance at this time.”

SPÖ: “We Need an Ambitious Climate Law”
Meanwhile, the SPÖ is calling on its coalition partner to show more ambition in climate protection. “The facts speak for themselves. We must resolutely combat the climate crisis. I once again call on the ÖVP to finally present an ambitious climate law that truly lives up to its name!” said SPÖ environmental spokesperson Julia Herr.

The hail insurance provider identifies a climate-change-induced “historic drought disaster” for farmers. Total damage to agriculture so far this year stands at one billion euros, the agricultural specialty insurer announced on Monday. 

Total damages could still rise
The drought is affecting all of Austria and all crops, particularly pastureland, corn, potatoes, sugar beets, pumpkins, and soybeans, but also grains in some regions. If the high temperatures persist through the end of August and rainfall fails to materialize, “the extent of the damage will clearly increase,” said the head of Hagelversicherung on Monday at a press conference in Vienna. Between 2017 and 2025, drought damage in Austria ranged from 30 to 230 million euros.