Berlin, January 2024: Thousands of farmers demonstrated on Straße des 17. Juni, blocking roads across the country and demanding the then-current German government reverse its planned elimination of the agricultural diesel refund. Joachim Rukwied, President of the German Farmers’ Association, described the move as a “massive burden” on their businesses.
The protests were successful: the refund has been fully reinstated at the beginning of this year. An evaluation by BR Data, using exclusive figures from 2021 and 2022, now reveals how many farms actually applied for the refund. The result: nearly half of all farms did not claim the state tax relief of 21.48 cents per liter of diesel. In 2021, around 56 percent of farms submitted an application, and approximately 57 percent did so in 2022.
“This obviously means that many farms can manage without this agricultural diesel refund,” says Green Party member of parliament Karl Bär, who obtained the data through a freedom of information request. More recent, state-level data is not currently available.
The number of farms submitting applications varies significantly by state. The application rate is particularly low in the city-states of Hamburg and Berlin, which have few, mostly highly small farms with low diesel consumption. The figures from Mecklenburg-Vorpommern and Thuringia are surprisingly low as well: in both states, just over 40 percent of farms applied for the refund.
The average refund per farm nationwide is just under 2,800 euros. Larger farms can receive a significantly higher amount, while smaller, part-time farms may receive only a few hundred euros per year.
Previously Unpublished Application Numbers
“This means that many farms can get by without this diesel refund,” said Green Party Bundestag member Karl Bär. Bär received the data in response to a freedom of information request. More recent, state-level data is not yet available.
Several farmers’ associations were unaware of these figures. They attribute the low application rate to practical reasons. In Mecklenburg-Vorpommern, the farmers’ association sees the application process itself as an obstacle, as it has been gradually converted to an online portal of the customs authorities requiring identification with an ELSTER certificate.
The Thuringian Farmers’ Association emphasizes that they regularly point out relief options, but also respect conscious decisions against applying—for example, because diesel consumption is low or the effort is disproportionate, especially for the many part-time farms.
In Bavaria and Lower Saxony, the application rate is higher: more than two-thirds of farms in both states submitted an application. According to the agricultural structure survey, about half of all farms in Bavaria are run as side businesses—yet many farms apparently still benefit from the refund.
The Bavarian Farmers’ Association stated on request that it supports its members with guidance and advice. Possible reasons for not submitting applications include an unfavorable cost-benefit ratio or missed deadlines. It is an individual “entrepreneurial decision.”
The Federal Ministry of Agriculture and the German Farmers’ Association emphasize the importance of the agricultural diesel refund for the competitiveness of farms. Agrarökonom Alfons Balmann, Director of the Leibniz Institute of Agricultural Development in Transition Economies (IAMO), calls the reintroduction of the subsidies, which cost the state around 430 million euros per year, a “nice bonus,” and primarily a sign of political goodwill, especially for full-time and larger farms.
Frequently Asked Questions
What percentage of farms did *not* apply for the diesel refund in 2021?
Around 56 percent of farms applied for the diesel refund in 2021, meaning nearly half did not.
Which states had the lowest application rates?
Hamburg and Berlin had particularly low application rates, while Mecklenburg-Vorpommern and Thuringia also saw relatively low numbers, with just over 40 percent of farms applying.
What is the average refund amount per farm?
The average refund per farm nationwide is just under 2,800 euros.
As policymakers consider the future of agricultural subsidies, what factors will ultimately prove most important to the long-term sustainability of farming operations?
