Agriculture: the State draws a new emergency plan

“It took strong measures to respond to the emergency situation created by the combination of climatic disasters and market crisis. Also, to avoid mass bankruptcies and allow farmers to turn this around. “Proof that the situation of farmers is difficult, it is the Hotel Matignon, in the mouth of Manuel Valls, a new sector support plan was announced Tuesday morning in the presence of Agriculture Minister Stephane Le Foll, following a meeting with agricultural unions and representatives of banks. The main measure announced by the Prime Minister, the state will guarantee half the loans sought to struggle, farmers, to enable them to borrow from their banks. Credit Agricole, Credit Mutuel, and BPCE will be able to lend up to EUR 1.5 billion advantage.

Why the state he comes (again) to farmers?

Weather of spring has pushed the French cereal harvest by 30% compared to 2015. And producers finances remain at half mast. livestock side, dairy farmers are constantly since the interruption of quotas, to alert their situation. At that point, the government had promised a support plan in late July. Particularly in terms of deferral contributions and loan repayments (the “lost year”), but also bank refinancing. The government had already announced in July 2015 a first plan to support farming in crisis, reinforced later, which included 700 million euros of direct and indirect subsidies, which were added 63 million Tennant Union European. The new government plan target of between 50 000 and 80 000 farmers in difficulty, who should benefit from the state guarantee for borrowing … provided to justify a decrease of 20% of gross operating surplus (revenue fewer expenses related production).

What are the measures announced?

Manuel Valls has therefore promised to guarantee half of the loans of struggling farmers, especially grain undermined by bad weather and always stuck farmers in the meat during the crisis. To do this, the state will give guarantees for 50% of loans via the BPIFrance public investment bank. The government will also “increase the budget allocated to aid for retraining of farmers and put up with the Agricultural Social Security (MSA) free replacement opportunities for farmers burn out but also more early retirements”, said Stéphane Le Foll. Other financial measure announced: grain will benefit from an additional rebate on the grasslands, their property tax.
What is the amount of aid promised?

The state can not do everything, but he intends to remain a strong supporter of the agricultural sector. It is, in short, the message Manuel Valls and Stéphane Le Foll wanted to express Tuesday. Illustration with the guarantee fund, in which the state will contribute up to 50 to 100 million euros, which should help “unfreeze 1.5 billion euros of loans from private banks for farmers in difficulty” according to Manuel Valls. These loans, which must be requested before the end of the year from major banks sector (Crédit Agricole, Crédit Mutuel, BPCE) will “both be used to obtain new money or refinance debt” of current loans, said the Prime Minister. Objective: “What interest rates are as low regardless of the situation of farmers,” said Stéphane Le Foll. The president of the FNSEA, Xavier Beulin, believes that this guarantee mechanism for loans will provide “very low levels, less than 1%.”

The other announcement is a social aid. The government will reactivate the existing support for the retraining of farmers wishing to leave their activity up to 3100 euros. The total amount will be increased tenfold to reach 15 million per year. In addition, phased retirement or retirement employment totals will also be supported.

Finally, 4 million euros have been allocated to finance the temporary replacement of farmers burnout situation colleagues paid this way.