Details of the measures for agriculture in the resilience plan

To deal with the economic fallout from the war in Ukraine, the government announced bailout measures on March 16 as part of a resilience plan. Farmers are also concerned, with 400 million euros for breeders, early repayment of the TICPE, a fertilizer security plan and even new trade talks.

Prime Minister Jean Castex announced on March 16 the measures of the resilience plan, intended to support the French economy in the aftermath of the war in Ukraine. (©Twitter account @JeanCastex)

lOn March 16, the prime minister announced the contours of a resilience plan intended to support the economy, severely affected by the consequences of the war in Ukraine† According to INSEE, one-year inflation in France could exceed 4% by the end of March, with a parallel decline in purchasing power of 0.9% compared to 2021. rising energy prices risk, according to economists, of causing an activity loss of at least one growth point.

To mitigate the impact, the Resilience Plan covers all economic sectors, including agriculture, especially as the rise in energy prices is taking place in a context of already historically high taxes. Thereby, €400 million will be provided to help breeders for the rising animal feed pricessaid Jean Castex. The aid will target farms that are highly dependent on buying food and who will incur losses in connection with this increase. It extends over a period of four months, with first payments within two months. The Minister of Agriculture is organizing a consultation of sector representatives in the coming days to refine the system.

TICPE, payment of social security contributions

The government has also announced, in addition: 15 cents excl. tax per liter of fuelof which the GNRa early redemption of the 2021 TICPE and “on request, a 25% deposit of the TICPE 2022 paid, after declaration, from 1er May 2022,” added Julien Denormandie.

The minister also indicated that farms were eligible for thesupport for companies that use a lot of gas and electricity† Those whose gas and electricity costs represent at least 3% of the costs and who would be in deficit by 2022 will see half of the excess energy costs covered within the limit of their losses.

Finally, €60m extra will be earmarked for the payment of social security contributions from this year.

Fertilizers, trade negotiations, acceleration of transitions

Four other measures should enable French agriculture to assume its “caring role”, the agriculture minister said. To reassure producers in light of this new increase in costsnews trade negotiations are opened to amend the contracts. All players in the food chain will be brought together this Friday by the ministers of economy and agriculture.

The government is also planning a “plan of securing fertilizers », in particular for the autumn 2022 campaign. This includes adapting or delaying regulatory measures that could have an impact on the fertilizer availabilityand to develop the use of organic fertilizers produced in France.

In the longer term, the government wants to accelerate the transformation and get out of dependencies. A map ” nitrogen sovereignty » will thus be developed to promote green manures and to make more use of organic manure. Reinforcement of vegetable protein plan is also planned through the France 2030 plan. The government will also have a ” agricultural energy sovereignty plan and food”, as well as a sovereignty plan dedicated to fruits and vegetables, Julien Denormandie specified.

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