The French government has announced a substantial EUR 230 million aid package aimed at supporting vignerons affected by recent adverse weather conditions and helping reduce vineyard oversupply.
According to local French news site Sud-Ouest, approximately EUR 80 million of the package is designated for vignerons who have suffered losses due to recent outbreaks of mildew and drought.
Those who have lost a minimum of 20% of their total crop will receive compensation ranging between EUR 5,000 and EUR 20,000.
Addressing Farmers' Demands
The farmers' demands for financial aid began in November, following significant crop damage and financial stress. The government's response aims to alleviate some of this burden and provide a safety net for those most affected. Additionally, EUR 150 million is set aside to finance vine-pull schemes that have been planned to address oversupply and disease control in vineyards.
Policy Changes and Farmer Reactions
In a related move, Gabriel Attal announced the cancellation of the planned tax increase on agricultural non-road diesel, a decision that had sparked recent demonstrations. Attal also simplified the tax rebate on fuel and promised that the government would not impose stricter regulations on farmers than those required by EU standards.
Initially, vignerons expressed skepticism about the government's commitment to addressing their concerns. Ludovic Roux, president of the Occitanie wine growers, expressed his doubts to L’Independent on Tuesday evening, stating that the sector had "been so burned in the past that we are waiting for concrete measures to believe in them." However, following the announcement, farmers in regions such as Haut-Garonne, Gironde, Hérault, Rhône, and Sarthe responded by lifting blockades.
Arnaud Rousseau, president of the National Federation of Farmers’ Unions (FNSEA), who had previously voiced concerns to Le Monde stating, "The Prime Minister’s announcements do not answer all of the questions we ask ourselves," has now called on farmers to end demonstrations and return home.
Measures to Combat Vineyard Oversupply
This recent aid package follows a significant agreement made in March last year between the Conseil Interprofessionnel du Vin de Bordeaux (CIVB) and the French government. The deal aimed to reduce the vineyard area in the Gironde department by around 10% to address the oversupply of wine and combat the spread of the vine disease flavescence dorée. The government had pledged a EUR 160 million fund to help vignerons manage the wine oversupply, with EUR 40 million from the French government and another EUR 40 million from the European Agricultural Guarantee Fund (EAGF).
Looking Ahead
The French government's latest aid package and policy changes mark a significant effort to support the vigneron community and stabilize the wine industry amidst ongoing challenges. By addressing immediate financial needs and implementing longer-term solutions for vineyard management, the government aims to ensure the sustainability and resilience of this vital sector. The future will reveal the effectiveness of these measures in addressing both economic and environmental challenges faced by French vignerons.
Source: The Drinks Business