No farmers, no food sovereigntyLuxembourg farmers warn of cash crisis and lack of long-term vision

Annick Goerens
adapted for RTL Today
Soaring costs, falling prices and a fertiliser subsidy that has yet to be paid are putting Luxembourg's farmers under severe financial strain, farmers' association Bauerenzentral warns.
After the summer drought many farmers have had to buy expensive animal feed.
© Ketty and Rom Hankes

Many farmers are currently under high financial strain, according to farmers' association Bauerenzentral.

Energy and fertiliser costs have soared while prices for agricultural products continue to fall, and after the summer drought many farmers have also had to buy expensive animal feed, leaving them with serious cash-flow problems, explained Andy Brisbois, the association's Vice-President.

Brisbois said farmers had been promised a subsidy in the spring to help with the high cost of fertiliser, yet not a single one had so far received a cent.

In the organisation’s view, it could no longer be described as an "immediate" subsidy, as it had failed in its purpose of giving farms a quick boost in liquidity.

The association had been told in writing that the money might arrive by the end of the year at the earliest, but more likely not until 2027, nearly a year after the decision was taken.

Criticism of property tax reform

The organisation is also critical of the property tax reform, in particular the planned "mobilisation tax" on undeveloped building land.

Land used for agriculture is exempt, but only when it is transferred within the second degree of kinship, that is, to parents, grandparents or siblings.

According to Philippe Keipes, Deputy Director of the Bauerenzentral, that does not go far enough.

"For various reasons, it is common in agriculture for aunts and uncles, who are relatives in the third degree, to remain co-owners or sole owners of land that the farmer rents from them and cultivates", Keipes explained.

If the exemptions do not cover plots owned by third-degree relatives, farmers risk losing access to this land, according to him.

At present, those raising the issue are being passed from one minister to another, as no one feels responsible, Keipes stated. The Bauerenzentral is therefore calling on the government to take a clear position.

No long-term vision for the sector

Beyond these immediate problems, the Bauerenzentral is also worried about the future of farming in Luxembourg. Over the past 16 years, the number of farms has fallen from 2,200 to around 1,800.

President Christian Wester said there was no in-depth study explaining why these farms had closed, and whether social or purely economic factors were behind it.

The organisation had also raised the question of building land, he added, asking whether farms were being affected by residential development or by compensation measures linked to other housing projects.

According to Wester, the sector lacks a "compass" to guide how farms should develop in the future.

The cultivation of fruit and vegetables, which has been encouraged, would be difficult in years as dry as this one, he added, stressing that there can be no food sovereignty without farmers.

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