Will Europe's Farmer Protests Make Their Way To The U.S.?

Wed, 06 Mar 2024 22:21:40 GMT

In case you haven’t heard, farmers across Europe are fed up with their politicians and bureaucrats telling them how to farm. Such sentiment is nothing new. What is new is that the level of frustration has grown to the point where thousands of farmers are taking to the streets with their 15-ton tractors and marching to the capitals and major cities of European countries to give government officials a message: enough already.

For those of us old enough to remember, this moment has a bit of historical déjà vu to it. Flash back to the late 1970s when on this side of the pond, Washington, D.C. was stormed by thousands of farmers driving their tractors to protest critically low commodities prices, higher input costs, falling land values and rising interest rates. This was the warning shot signaling even more dire times to come as the farm crisis of the 1980s followed.

Now, nearly 45 years later, the flame still burns. But this time the fire is taking off in Europe. The ingredients for the discontent are much the same—low prices, costly inputs, high interest rates and so forth. However, the recipe has added an ingredient that has quickly become the biggest fly in the soup as far as European farmers are concerned.

Policy Pushback
The European Green Deal, approved in 2020, is a set of policy initiatives established by the European Commission. Its overarching aim is to make the European Union (EU) climate-neutral by 2050. For European farmers, one of the most controversial components of the deal was the goal to reduce chemical fertilizer and pesticide use by 50% by 2030. That, combined with plans to idle more farmland to increase land biodiversity and forests, along with very little funding directed to farmers to facilitate and harbor such a transition, set the stage for a revolt.

From Berlin and Paris to Brussels and Bucharest, European farmers have driven their tractors to the streets in protest in recent weeks. In Germany, an estimated 30,000 protestors and thousands of tractors brought Berlin’s city centre “to a standstill” in mid-January due to dissatisfaction with the government over the cutting of agricultural fuel subsidies. The protests in France erupted over plans to reduce agricultural fuel subsidies and the government’s push to halve pesticide use by the end of this decade.

The situation escalated to a point where farmers sprayed manure on a local government building in the city of Dijon. In Paris, hundreds of tractors blocked off major roads into the country’s capital in what was called the “siege of Paris” by many media outlets—one of which being BBC News.

By mid-February, protests had spread to other European countries including Italy, Greece, Belgium, Poland, Spain and even Romania and Lithuania. There seems to be no sign of this fire going out any time soon. All the politicians can hope for is that springtime and Mother Nature will draw the farmers and their tractors back to their fields to sow their spring crops and allow the political firestorm to cool off.

But hope is not a strategy, and European farmers know it. Now the question may be how much of the “green gains” are EU’s leaders willing to concede in order to save their political hide. The European Commission, the executive arm of the EU, now intends to scrap the plan to halve pesticide use. It also decided to exclude the agricultural sector from the strict timeline for cutting greenhouse gas emissions by 90% before 2040. In Germany, farmers gained some concessions from the government on the issue of fuel subsidies but continue their demand for full reinstatement. On Feb. 1 in France, the main farmer unions called for an end to the protests after “securing promises of governmental assistance” on finance and regulatory issues. And in the EU’s home base, farmers “won their first concession from Brussels” after the commission proposed to delay rules for setting aside land for biodiversity.

Whether it is luck, strategy or irony on the part of the farmers, Europe’s reassessment of its climate policies comes as the bloc approaches EU parliamentary elections in June. The elections are expected to bring more far-right and fringe lawmakers into Parliament. Already, the continent’s political pundits are saying the next political cycle (2024-29) “will undoubtedly be less green to the point of putting into question the implementation of the green new deal.” Plus, the recent protests “are just a prelude of the further clashes to come.”

Too Many Sticks, Too Few Carrots
Will this fire jump the pond, and could we once again see tractors showing up on the National Mall in Washington, D.C.? Need I remind you, it is an election year here, too.

It is unfair and unwise to think farmers—no matter the continent where they live—are going to carry the costs of going green on their backs alone. At some point, all this needs to stop being an academic exercise and become an economic one. Start paying more to the farmer for carbon credits. Provide the tax incentives to finance the transition to “greener” farms. And stop with the rhetoric that burping cows are going to cause the next apocalypse.

Down on the farm in the U.S., the green agenda is at a crossroads. The question will be whether we will make the same mistakes Europe did and try to drive a green agenda too fast with a stick-heavy approach. The first litmus test may come sooner rather than later as Congress still has a new farm bill to pass. It is expected to be the “greenest” farm bill on record. This election year, given what’s happening in Europe, will our politicians pile on the carrots instead of giving us more sticks? Come November election time, we will see which road we are headed down.

Why Farmers Are Protesting In Europe

Tue, 20 Feb 2024 21:08:22 GMT

Farmers are protesting across the European Union, saying they are facing rising costs and taxes, red tape, excessive environmental rules and competition from cheap food imports. Demonstrations have been taking place for weeks in countries including France, Germany, Belgium, the Netherlands, Poland, Spain, Italy and Greece.

While many issues are country-specific, others are Europe-wide. Here is a detailed look at the problems that have prompted the protest movement across the bloc and in individual countries.

IMPORTS

Demonstrations in eastern Europe have focused on what farmers say is unfair competition from large amounts of imports from Ukraine, for which the EU has waived quotas and duties since Russia’s invasion. Polish farmers have been blocking traffic at the border with Ukraine, which Kyiv says is affecting its defense capability and helping Russia’s aims. Meanwhile, Czech farmers have driven their tractors into downtown Prague, disrupting traffic outside the farm ministry.

The farmers resent the imports because they say they put pressure on European prices while not meeting environmental standards imposed on EU farmers. Renewed negotiations to conclude a trade deal between the EU and South American bloc Mercosur have also fanned discontent about unfair competition in sugar, grain and meat.

RULES AND BUREAUCRACY

Farmers take issue with excessive regulation, mainly at EU level. Centre stage are new EU subsidy rules, such as a requirement to leave 4% of farmland fallow, which means not using it for a period of time.

They also denounce bureaucracy, which French farmers say their government compounds by over-complicating implementation.

In Spain, farmers have complained of “suffocating bureaucracy” drawn up in Brussels that erodes the profitability of crops.

In Greece, farmers demand higher subsidies and faster compensation for crop damage and livestock lost in 2023 floods.

RISING DIESEL FUEL COSTS

In Germany and France, the EU’s biggest agricultural producers, farmers have railed against plans to end subsidies or tax breaks on agricultural diesel. Greek farmers want a tax on diesel to be reduced.

In Romania, protests in mid-January were mainly against the high cost of diesel.

In France, many producers say a government drive to bring down food inflation has left them unable to cover high costs for energy, fertilizer and transport.

WHAT ARE GOVERNMENTS DOING?

The European Commission late last month proposed to limit agricultural imports from Ukraine by introducing an “emergency brake” for the most sensitive products - poultry, eggs and sugar - but producers say the volume would still be too high. The Commission has also exempted EU farmers for 2024 from the requirement to keep some of their land fallow while still receiving EU farm support payments, but they would need to instead grow crops without applying pesticides.

French Prime Minister Gabriel Attal announced measures including controls to insure imported foods do not have traces of pesticides banned in France or the EU, and talks to get farmers higher prices and loosen bureaucracy and regulation.

Paris and Berlin have both relented to the pressure and rowed back on plans to end subsidies or tax breaks on agricultural diesel. In Romania, the government has acted to increase diesel subsidies, address insurance rates and expedite subsidy payments.

In Portugal, the caretaker government has announced an emergency aid package worth 500 million euros, including 200 million euros to mitigate the impact of a long-running drought.

WHY FARMERS ARE PROTESTING, BY COUNTRY:

FRANCE

- EU red tape

- Diesel prices

- Need more support to shore up incomes

- Access to irrigation

- Criticism over animal welfare and use of pesticides

POLAND

- Cheap imports from Ukraine

- EU regulation

CZECH REPUBLIC

- Bureaucracy

- Cheap imports

- EU farm policy

SPAIN

- “Suffocating bureaucracy” drawn up in Brussels that they say erodes the profitability of crops

- Trade deals that they say open the door to cheap imports

PORTUGAL

- Insufficient state aid, subsidy cuts

- Red tape

ROMANIA

- Cost of diesel

- Insurance rates

- EU environmental regulations

- Cheap imports from Ukraine

BELGIUM

- EU requirement to leave 4% of land fallow

- Cheap imports

- Subsidies favoring larger farms

GREECE

- Demands for higher subsidies and faster compensation for crop damage and livestock lost in 2023 floods

- Diesel tax and surging electricity bills

- Falling state and EU subsidies

(Reporting by Sybille de La Hamaide and Gus Trompiz; Editing by Crystal Chesters)