Sunday, 26 October 2025
The early months of Germany’s new federal government, led by a CDU/CSU–SPD coalition, have marked a notable change of course in agricultural policy. According to Ludwig Theuvsen, former university lecturer, former state secretary in the Lower Saxony Ministry of Agriculture, and current adviser at the REWE Group’s Competence Centre for Agriculture, the government has so far delivered on its election promise to place greater emphasis on food security, domestic food production, and the strengthening of the farming sector.
Theuvsen points to the reintroduction of the agricultural diesel rebate, the abolition of the material flow balance requirement to reduce bureaucracy, and the extension of the transitional period for the Animal Husbandry Labelling Act as examples of this shift. The government has also partially recognised the wolf’s favourable conservation status, a measure seen as a signal of support for pasture owners and rural communities.
However, the sector faces challenges from other policy decisions. Theuvsen notes that the significant increase in the minimum wage, strongly backed by the SPD, could place considerable pressure on labour-intensive branches such as fruit, wine, and vegetable farming, where margins are already tight.
Theuvsen also addressed the strained relationship between farmers and policymakers, which came to the fore in the mass protests at the start of 2024. He argues that the new government offers an opportunity to rebuild trust, but only if it continues to act decisively to cut bureaucratic burdens and remove investment barriers, particularly in construction and environmental regulation. Farmers, he stressed, need to see practical improvements on the ground before confidence can be fully restored. The European Union, too, should play its part by adopting measures that ease regulatory pressures.
Signs of cautious optimism have already appeared. A recent press release from the Agricultural Pension Bank reported a 77 percent increase in new production loans in the first half of 2025, suggesting that sentiment among farmers is beginning to improve.
Looking ahead, Theuvsen highlighted the importance of reforming the Animal Husbandry Labelling Act, which has faced heavy criticism for its lack of integration with private-sector initiatives and potential enforcement problems. The extension of the transitional period for fresh pork labelling until March 2026 was, in his view, unavoidable. The coalition has pledged a fundamental reform of the legislation with broader stakeholder involvement, and Agriculture Minister Rainer has announced more practical and less bureaucratic rules.
Theuvsen remains cautiously optimistic that a reformed law will align better with the Borchert Commission’s proposals, which call for labelling across all animal species and sales channels. Success, however, will depend on close cooperation between farmers, processors, retailers, and policymakers.
Source: REWE Group
