Germany announces 750 million euros in farm aid

20th November 2009, Comments 0 comments

Dairy and arable farmers will receive direct aid of 500 million euros, 200 million euros will help farmers cover their insurance costs and 50 million euros will be earmarked for low-interest loans, the government said.

Berlin -- Germany announced on Thursday 750 million euros (1.1 billion dollars) in aid over two years to struggling farmers to help them cope with falling prices for agricultural products, particularly milk.

Dairy and arable farmers will receive direct aid of 500 million euros, 200 million euros will help farmers cover their insurance costs and 50 million euros will be earmarked for low-interest loans, the government said.

The aid will compensate farmers for "the massive and unexpected fall in prices," Agriculture Minister Ilse Aigner said.

The aid was in line with what was agreed by Chancellor Angela Merkel and her new coalition partners following their election victory on September 27, and follows angry protests by dairy farmers in Germany and across Europe.

Merkel's previous government released aid of 305 million euros to farmers including 285 million euros through lower tax on agricultural diesel. Dairy farmers are also due to receive aid from the European Union in 2010.

AFP/Expatica

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