Agricultural diesel subsidies back! Farmers cheer – criticism remains loud!

Agricultural diesel subsidies back! Farmers cheer – criticism remains loud!

On November 7, 2025, the Bundestag made a groundbreaking decision: The subsidies for agricultural diesel will be reintroduced at the old level of 21.48 cents per liter. From January 2026, farmers in Germany can benefit from this financial relief, which will cost an estimated 430 million euros annually. The return to the previous benefits is primarily a reaction to the protests that were sparked by farmers about two years ago against the removal of subsidies. Now many are happy, including farmer Alexander Amberg from near Erfurt, who reports an annual subsidy of around 25,000 euros and sees the support as urgently needed.

“Producer prices are falling sharply and costs are rising,” says Amberg, who is not alone in his opinion. Andreas Jahnel from the Saxony State Farmers' Association is also optimistic and emphasizes how important this support is for agricultural businesses. Saxon Agriculture Minister Georg-Ludwig von Breitenbuch confirmed the decision and compared it with higher subsidies in other EU countries. This decision was made in the Bundestag together with the votes of the CDU, CSU and SPD, while the Greens were the only parliamentary group to vote against it.

Reactions to the decision

However, the return to the old regulation does not come without criticism. Wolfram Günther, the former agriculture minister and Green politician, criticizes the federal government's lack of a long-term plan to reduce climate-damaging subsidies. Caroline Tiefenbach from German Environmental Aid sees the decision as a “roll backwards” and instead calls for investments in sustainable agriculture. There is a legitimate concern that the restoration of such subsidies will not necessarily set the course for the future of agriculture for the better.

The previous government, consisting of the SPD, Greens and FDP, had decided to gradually abolish the benefits, which ultimately led to massive protests by farmers. These subsidies, which have now been restored, could be seen as relief for companies, a point that Federal Agriculture Minister Alois Rainer also underlines. Still, finding a balance between financial support and the need for an environmentally conscious agricultural sector is a challenge.

The discussion about agricultural diesel subsidies shows clearly: While some farmers are happy about the return of subsidies, on the other hand there are serious concerns about the long-term effects on the environment and climate protection.]

The future of German agriculture remains exciting - and the coming months will show how the industry will develop under the new (old) subsidy regime.

MDR reports that...

Time explains the background...