Three questions with Ludwig Theuvsen on the new federal government’s agricultural policy

At the beginning of his term of office, Federal Minister of Agriculture Rainer initiated the change of course announced by the CDU/CSU parties during the election campaign: more focus on food security and domestic food production as well as strengthening agriculture. This change of course is reflected, among other things, in the reintroduction of the agricultural diesel regulation, the abolition of the material flow balance as a contribution to reducing bureaucracy and the extension of the transitional period for the Animal Husbandry Labeling Act. The partial recognition of the wolf’s favorable conservation status is also an important signal to livestock farmers and people in rural areas.

In a policy area as complex as agricultural policy, there are of course also individual opposing developments, such as the foreseeable significant increase in the minimum wage, which is very close to the SPD’s heart. The further increase in the minimum wage will put considerable pressure on domestic fruit, wine and vegetable production in particular to adapt.

The poor mood in the sector has various causes, from the lack of appreciation of agriculture in parts of the population and the media, to the economic pressure that farms are under, to the excessive bureaucracy with which politicians harass agriculture. Farmers’ protests therefore took place in the winter of 2023/24 not only in Germany, but in almost all EU member states. The change of course initiated by Federal Minister of Agriculture Rainer is a signal to the agricultural sector that politicians are once again on its side.

Of course, the measures implemented so far are nowhere near enough to completely change the mood. A far-reaching relief from bureaucratic burdens that can be felt on farms and the removal of barriers to investment, namely in building and immission control law, will be of central importance in order for farmers to look ahead more optimistically and invest in their farms again.

Of course, the same path must be taken in Brussels. The EU also urgently needs a moratorium on burdens and contributions to reducing bureaucracy. Last but not least, the economy itself must also contribute to changing the mood, as many bureaucratic requirements were not devised by politicians in Brussels and Berlin, but by the value-adding partners of our agricultural sector.

A recent press release from Landwirtschaftliche Rentenbank gives cause for hope: according to the report, new business in promotional loans rose by 77 percent in the first half of 2025 compared to the previous year. The mood in agriculture seems to be brightening – that is a good sign.

The Animal Husbandry Labeling Act was heavily criticized, partly because it was not sufficiently dovetailed with existing private sector initiatives and there was a risk of significant enforcement deficits. There was therefore no alternative to extending the transitional period. The coalition partners have agreed to fundamentally reform the law with the involvement of all stakeholders along the value chain. Federal Minister of Agriculture Rainer has announced more practical and less bureaucratic regulations.

In addition, the Union’s rapporteur for the agricultural budget has spoken out in favor of daring more Borchert in the course of this year’s budget discussions. The Borchert Commission’s concept envisages the inclusion of all animal species and distribution channels.

I am therefore cautiously optimistic that the reform of the Animal Husbandry Labeling Act will go in the right direction, also thanks to the broad participation of practitioners. However, it can do no harm if representatives from all stages of the value chain – from agriculture to retail – seek a close exchange with politicians on this issue.