France offers zero-interest loans to drought-hit farmers as unions call aid insufficient
Agriculture minister Annie Genevard announced the measure on Thursday at the Sommet de l'élevage in Cournon-d'Auvergne. The state would pay the interest on loans that banks already offer at about 2.5%, though the plan depends on the 2027 budget.
Emergency plan and union criticism
In September the government announced an emergency plan of more than one billion euros for farmers hit by drought and heatwaves. Unions criticised it as insufficient, and the initial budget lacked a recovery plan, which the government promised to add through amendments during parliamentary debate. Agriculture minister Annie Genevard made her announcement on Thursday 8 October at the Sommet de l'élevage in Cournon-d'Auvergne, in the Puy-de-Dôme, where breeders had been gathering since Tuesday. The visit came during a new social crisis driven by high school students, and the state feared farmers could join the protests.
- Government announces emergency plan of more than one billion euros
- Breeders begin gathering at the livestock summit in Cournon-d'Auvergne
- Genevard announces zero-interest loans and further measures at the summit
Speaking to farmers at the summit, Genevard said the emergency plan was not the last word on the matter.
This plan was not a final settlement of all accounts.
Zero-interest loans and the 2027 budget
The main measure is zero-interest loans for farmers affected by drought, intended to replenish their cash reserves and pay for fodder and inputs. The loans could cover an outstanding balance of two billion euros. Several banks already offer drought cash loans at a reduced rate of 2.5%, and the state would pay the remaining interest so the loans are at zero rate for farmers. The measure will be presented as an amendment to the 2027 budget bill, which is under review in Parliament and uncertain given the absence of a majority there. Genevard said the first loans could be granted in 2026, but her entourage acknowledged that applications must be filed quickly and that most loans will be for 2027. The FNSEA had estimated the cost to the state at 50 million euros and asked for immediate action, because several banks had already agreed to reduce rates.
Reserve funds, young farmers and insurance
Genevard also announced the release of a 21 million euro reserve from the reinstatement fund, part of a 235 million euro envelope held by prefects to support the hardest-hit farmers. According to SudOuest, these funds had been kept aside and do not add to the envelope, which has been distributed since the start of the month.
- Loan balance the zero-rate measure could cover
- 2000 EUR million
- Envelope held by prefects
- 235 EUR million
- Released reserve from reinstatement fund
- 21 EUR million
- FNSEA cost estimate for the state
- 50 EUR million
A programme for recently established young farmers was also announced, covering the rescheduling of their loans. The FNSEA and Jeunes Agriculteurs had requested these measures. The main demand from breeders, however, concerned harvest insurance, which is meant to compensate for lost grassland that has barely grown since spring because of the lack of rain. That shortfall is forcing farmers to draw down the fodder stocks they had set aside for winter.
Union responses
Jocelyn Dubost, president of Jeunes Agriculteurs, gave a cautious welcome to the package. He described the measures in these words:
These measures are a step in the right direction.
Dubost said he was considering using one of the loans to get through what he called a catastrophic year for his crops. He added that the package was not the end of the matter, pointing to coming debates on the 2027 French budget and the EU Common Agricultural Policy budget. Patrick Bénézit, vice-president of the FNSEA, insisted that the political agenda must account for the feed supply schedule this winter, so that farmers are not forced to send their livestock to slaughter.
