A financial boost. Agriculture Minister Annie Genevard announced on Tuesday in Fabrezan (Aude) the government’s intention to offer two tools to support the cash flow of farmers in difficulty, thus responding to a strong request from the majority trade union alliance FNSEA/ Young Farmers (JA). , while anger has been simmering within the profession for several weeks.
The first is ”a short-term loan for economic difficulties”, for which the State is currently negotiating a reduced rate with the banking sector, “between 1.5 and 2%”, explained the minister (LR) to the press after a meeting with representatives of the Aude wine industry, on the second day of a trip to Occitanie.
In case of bankruptcy “the State reimburses 50%” of the loan to the farmer
Farmers whose difficulties “put the very sustainability of the farm at risk” will be able, if they wish to restructure their debt to make it more sustainable, to benefit from a second type of loan “longer term, from 5 to 7 years”, and guaranteed by the State up to 50%, he specified. “This means that if the farmer goes bankrupt and is unable to repay his loan, the state will return 50% of this loan,” the Agriculture Ministry also told AFP.
Annie Genevard also declared to the Aude that the State is increasing by 20 million euros, reaching 50 million, the allocation that allows the ”farmers most in difficulty” to be exempted, under certain conditions, from part of their personal social security contributions for the year 2024.
Frédéric Rouanet, president of the Aude winemakers’ union, welcomed these announcements with reservations, wary of a possible “announcement effect”. These announcements come after a resurgence of tensions in the agricultural world, with some unions threatening to resume their protests, ten months after the outburst that rocked the profession in January. The rural coordination union of Lot-et-Garonne (CR47), for example, called on Monday for a new mobilization starting from November 19, in particular by blocking the rail transport of goods, due to the lack of response from the state.
20 million euros for the agricultural hydraulic fund
During a second stop in Castelnau-d’Aude, Annie Genevard also revealed the list of projects that will benefit from aid from the agricultural hydraulic fund, endowed with 20 million euros. These projects, 48 across France, including 14 in Occitania, aim to ”guarantee access to water for agricultural companies in sustainable conditions that respect water resources”, specifies the ministry in a press release.
This involves in particular the creation of hill basins or irrigation networks and the renewal of various hydraulic infrastructures. Only one project is intended for the reuse of wastewater, in Argelès-sur-Mer (Pyrenees Orientales).
Asked about the platform signed on Monday by more than 200 French deputies, from the left and the right, which calls on the government to block the conclusion of the long-awaited free trade agreement between the European Union and the Mercosur countries, the minister said that it was “ absolutely and fundamentally hostile” to this draft agreement.
“The production that the Mercosur countries will bring us will profoundly destabilize our production,” he denounced, assuring that “agriculture cannot (could) be the adjustment variable of all the international agreements that Europe concludes.
The Minister of Agriculture made his second trip to Occitanie on Monday and Tuesday after a visit to the Pyrenees Orientales in mid-October, while a new episode of actions by angry farmers is looming from November 15th.
Interview: Addressing the Challenges in Agriculture – A Conversation with Agriculture Expert Dr. Marie Lefèvre
Time.news Editor (TNE): Good day, Dr. Lefèvre! Thank you for joining us today. It seems the recent measures unveiled by Agriculture Minister Annie Genevard are a response to growing concerns in the farming community. Can you give us an overview of what these measures entail?
Dr. Marie Lefèvre (ML): Good day, and thank you for having me. Yes, the recent announcement includes two significant initiatives aimed at alleviating the pressures faced by farmers. The first is a short-term loan designed specifically for farmers experiencing economic difficulties, which will be offered at a negotiated reduced interest rate between 1.5% and 2%.
TNE: That sounds promising. But what happens if farmers find themselves unable to repay these loans?
ML: That’s a critical point. The government has also introduced a longer-term loan option of 5 to 7 years. This is particularly beneficial for farmers whose sustainability is at risk due to mounting debt. In the event of bankruptcy, the state guarantees repayment of 50% of the borrowed amount. This safety net could provide some much-needed relief for struggling farmers.
TNE: Indeed, preventing further losses is essential. Moreover, there’s mention of increased financial support for farmers, specifically to exempt them from partial social security contributions. What impact do you anticipate this will have?
ML: Increasing the allocation to €50 million for social security exemptions is a significant step. This funding will help farmers who are particularly hard-hit by the ongoing financial strain. By easing their social security obligations, the government is directly addressing one of their burdens. However, permanent financial stability will need more than just temporary relief measures.
TNE: Absolutely. There seem to be some reservations from industry leaders like Frédéric Rouanet regarding these announcements. Why do you think there is this skepticism?
ML: Rouanet’s concerns reflect a broader sentiment in the agricultural community. Farmers have been facing heightened pressures for a long time, and there’s often skepticism about whether such announcements will lead to real change. There’s a history of what’s called the “announcement effect” — where the government makes promises that don’t translate into tangible support. Coupled with the previous protests seen this year, this skepticism is understandably high, especially with unions threatening to mobilize again.
TNE: It’s evident that the agricultural sector is in a precarious position. What role do you think the Agricultural Hydraulic Fund will play with its increased allocation of €20 million?
ML: The Agricultural Hydraulic Fund is crucial for ensuring that farmers have uninterrupted access to water, especially in regions where scarcity is becoming a pressing issue. With the new projects scheduled to roll out, this funding will help maintain and improve water management systems. However, while it’s quite beneficial, it also highlights the need for long-term infrastructural solutions rather than just temporary fixes.
TNE: So, what does the future look like for farmers in the face of these recent developments?
ML: The measures announced are steps in the right direction, but the road ahead requires a sustained commitment from both the government and the agricultural community. As long as farmers continue to feel that their needs are not being adequately addressed, tensions will persist. Ongoing dialogue between farmers and government officials is essential to ensure that solutions are not just surface-level but genuinely beneficial and sustainable.
TNE: Thank you, Dr. Lefèvre, for shedding light on these crucial issues. Your insights are invaluable as we navigate these challenging times in the agricultural sector.
ML: Thank you for having me! Addressing these issues collaboratively is key to ensuring the future of our agriculture.