France announced emergency measures on Tuesday (24) to help farmers dealing with rising fuel and fertilizer costs resulting from the war in Iran.
Higher prices for diesel, gas and fertilizers are threatening the stability and food production capacity of some farms. The immediate measures announced by the Ministry of Agriculture include the delay in the payment of social contributions and the relaxation of tax deadlines upon request. State-guaranteed short-term loans, provided by public investment bank Bpifrance, are available to farmsmost affectedby increases in fuel prices. The government is also working with banks and distributors to find solutions for companies facing cash flow problems.
France has been pushing for the European Union to exclude fertilizers from the carbon border tax, which came into force on January 1, to reduce costs for farmers. Disruptions to shipping in the Persian Gulf’s Strait of Hormuz have shaken global trade in fertilizers and oil, contributing to price spikes and production challenges. Similar support was announced for the transport sector on Monday.
Farmers say the measures are insufficient and many farms are at risk. The sector’s main union, the FNSEA, said in a statement that the measures “only postpone problems without actually resolving them.”
