The French government has announced a comprehensive French drought relief package exceeding €1 billion. This substantial aid aims to support farmers severely impacted by the summer’s intense heatwaves and prolonged drought. Agriculture Minister Annie Genevard unveiled the plan on Friday, emphasizing the urgency of the situation. Up to 35,000 farms, representing nearly 10% of French agricultural operations, face financial instability.
The “CASI” initiative, focusing on climate, adaptation, drought, and fire, has multiple objectives. Firstly, it seeks to compensate farmers for their significant crop losses. Moreover, the plan aims to prevent bankruptcies by shoring up farm finances. Finally, it intends to restart agricultural production, facilitating the purchase of essential items like seeds and animal feed.
Among a dozen proposed measures, three main provisions will absorb the majority of the funding. A crucial element is the National Solidarity Compensation scheme. This public insurance mechanism, designed for harvest loss payouts, will see accelerated disbursement and a €520 million boost. However, this augmentation is contingent on the adoption of the 2027 national budget.
Additionally, a €235 million “agricultural rearmament fund” will be established. Prefects in various departments will manage this fund directly, soon engaging with farming organizations. Its purpose is to target the most vulnerable and priority farms, including market gardeners, cereal producers, and livestock breeders. The precise allocation among departments is currently being finalized. Minister Genevard warned that declining production could result in “losing landscapes, market shares, and sovereignty.”
Another significant component involves property tax relief on unbuilt land. This measure will alleviate the burden on the hardest-hit operators. Consequently, the state anticipates a €330 million reduction in tax revenue. Furthermore, the government is considering extending aid for purchasing fertilizers and non-road agricultural diesel this autumn.
Funding for these extensive measures will come from various sources. It includes a short-term unfreezing of Ministry of Agriculture credits. Savings from other ministries will also contribute. However, new credits will be necessary, which are expected through the upcoming finance law. Minister Genevard stressed that this constitutes “new money, not recycling,” despite underlying tensions between various government departments regarding the plan’s details. The government also urged large retailers to help control rising consumer prices.
In the coming weeks, the executive branch plans to detail a “rebound plan” for agriculture. Key provisions will be incorporated into the 2027 budget. Earlier in August, Sébastien Lecornu previewed future measures, including enhanced tax relief for agricultural investment projects and support for hydraulic infrastructure. These initiatives aim to further adapt agriculture to the challenges of climate change. This substantial French drought relief aims to build long-term resilience.
