France to allocate over €1 bln to compensate farmers for heat-related losses

France will allocate more than €1 bln to support farmers who suffered losses due to prolonged heat, drought and wildfires this summer. The funds will be used to compensate for crop losses and help restore agricultural activity, according to Bloomberg.

French Agriculture Minister Annie Genevard said the package represents additional funding rather than a reallocation of money already earmarked for the agricultural sector. The decision comes amid difficult negotiations over the country’s 2027 state budget.

French agriculture has faced significant pressure from extreme weather this year. The country experienced its hottest summer on record, while Météo-France reported a fifth heat wave during the year. High temperatures and a lack of rainfall have negatively affected yields of several crops.

Corn production has been particularly affected. According to available estimates, France’s corn crop has declined by around 35%. Lower agricultural production is also putting pressure on the country’s agricultural trade amid weaker grain and wine sales and rising food imports.

French authorities have also adopted additional measures to support the sector. These include expanding water storage and irrigation systems, supporting livestock production, strengthening protection against unfair competition and increasing the use of locally produced agricultural products in public catering.

Tags: subsidies, France