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Drought aid package for farmers: SPÖ and Neos oppose 'over-subsidization' and 'symptom management'
🇦🇹 Austria /Environment & Climate

Drought aid package for farmers: SPÖ and Neos oppose 'over-subsidization' and 'symptom management'

From Die Presse · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Austrian Agriculture Minister Norbert Totschnig (ÖVP) plans to support farmers affected by drought, even those without insurance.
  • Coalition partners SPÖ and Neos are skeptical due to budget constraints and advocate for climate legislation.
  • The severe drought is estimated to have caused around 1 billion euros in agricultural damage, with only about 400 million euros covered by insurance.

Austrian Agriculture Minister Norbert Totschnig, from the ÖVP party, intends to provide drought relief to farmers, including those who are not insured against such extreme weather events. This proposal has met with skepticism from his coalition partners, the SPÖ and Neos.

Those who insure themselves should not be worse off.

— Rupert QuehenbergerSalzburg's Chamber of Agriculture President commented on the planned aid package, suggesting insured farmers might feel disadvantaged.

Discussions between Totschnig and Finance Minister Markus Marterbauer (SPÖ) are ongoing, with further political talks planned. The extreme dryness of the current summer has significantly impacted Austria's agricultural sector. The Hagelversicherung (hail insurance) estimates the total damage from the record drought at approximately 1 billion euros, of which the insurer covers only about 400 million euros.

Currently, around 80 percent of arable land in Austria is insured against drought, but only 40 percent of grassland. The federal and state governments are already subsidizing insurance premiums, contributing about 160 million euros (a 55 percent subsidy) in 2025.

We don't see fresh money.

— Christoph BadeltThe Fiscal Council President expressed skepticism about the availability of funds for drought aid.

The SPÖ and Neos parties have expressed concerns about the budget implications of supporting uninsured farmers. They argue that such a move could disincentivize farmers from taking out insurance in the future. Both parties are also pushing for the government to present the long-awaited climate law. Neos emphasizes the need for "prevention, not just symptom management" and points to limited budget flexibility, echoing concerns from Fiscal Council President Christoph Badelt.

We want no over-subsidization like in the past.

— Michaela SchmidtThe SPÖ State Secretary outlined her party's concerns regarding the proposed farmer aid.

SPÖ State Secretary Michaela Schmidt stated that farmer aid must adhere to criteria of "accuracy, economy, and long-term viability." She cautioned against "over-subsidization" as seen in the past, arguing that public funds should not cover the damages for uninsured farms, as it would undermine the insurance system. As weather extremes become more frequent due to climate change, Schmidt indicated the need for a new, ambitious approach.

It is not sensible if the public hand now pays the damage for uninsured farms. Then nobody will insure themselves anymore.

— Michaela SchmidtThe SPÖ State Secretary explained why her party opposes covering damages for uninsured farmers.
DistantNews Editorial

Originally published by Die Presse in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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