National Agricultural Policy : Germany

Although many decisions on agricultural policy are today taken by the European Union, a few important matters are still in the hands of the national governments. This applies in particular to environmental, social and, to a limited extent, structural policy for the agricultural sector. Although the European Union sets the framework in this area, the federal and state governments provide the substance. Together with the states, for instance, financial assistance is provided for water management measures such as the construction of central water supply and sewage treatment facilities as well as for land consolidation, village renewal and construction of country roads. In addition, special funds are provided for farms in naturally disadvantaged areas where agriculture is an important economic and social factor.

Another aim of environmental policy in the agricultural sector is to limit the use of production aids such as fertilizers and plant protection agents to a bare minimum. Fertilization and plant protection are to be performed in accordance with “good agricultural practice”. Farmers who use environmentally friendly farming methods above and beyond the requirements of “good agricultural practice” and suffer income losses as a result should receive financial compensation in recognition of their service to society.
A separate social security system tailored to the special needs of the agricultural community has been established for independent farmers and their family members to protect them against the financial consequences of an insured person’s illness, work-related accident, invalidity or death and to ensure their security in old age.