More money is on the way

Initial heat relief payments have already been made

The total damage caused by the drought amounts to more than one billion euros.(Bild: Attila Molnar)

Negotiations took a long time—but payments were made quickly. At least, that’s the case for insured farmers. According to its own figures, the hail insurance company has already transferred a sum in the tens of millions to local farms. Additional funds are expected to flow shortly thanks to the rapid establishment of a legal framework. 

While it’s still too early to speak of a windfall, the first millions are now flowing to local farms following weeks of tough negotiations over drought relief payments. As the hail insurance company confirmed in response to an inquiry from the “Krone,” a sum in the tens of millions has already been paid out—and more funds are flowing in on an ongoing basis.

The first funds are already reaching the farms.

Landwirtschaftsminister Norbert Totschnig

“Our drought insurance model, which serves as an example across Europe, thus demonstrates in concrete terms that preparedness works and that aid arrives quickly,” says ÖVP Agriculture Minister Norbert Totschnig, who has recently faced much criticism. The intensive negotiations of the past two weeks have paid off. “We are taking action now so that our family-run farms can weather this crisis and the supply of local food remains secure in the future,” the minister said.

At the same time, the aid package will soon provide additional financial flexibility—even for uninsured farmers—so they can purchase feed and seeds. According to the ministry, the legal framework for operating resources and for deferring current agricultural investment loans—with 100 million euros available for both—will be established “promptly” via a special directive or decree.

The 140 million euro reduction in social security contributions is intended to provide relief for farmers when the payments would otherwise be due—in January 2027.