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FNSEA demands doubled fuel subsidies for French farmers

France's FNSEA union has asked the government to double fuel subsidies for farmers after agricultural diesel prices rose above 1.50 euros per litre.

FNSEA demands doubled fuel subsidies for French farmers

France's main agricultural union, the FNSEA, has demanded that the French government double its state subsidy on non-road diesel to 30 cents per litre for farmers facing soaring fuel prices.

The demand followed an announcement by the French government on Tuesday, 22 September, confirming that it would extend its current support of 15 cents per litre for off-road diesel until 31 December. Union leaders argued that the executive branch is not doing enough to protect the agricultural sector as fuel costs rise against the backdrop of conflict in the Middle East.

Speaking in a video published on union channels, FNSEA president Arnaud Rousseau stated that non-road diesel used in agriculture had passed 1.50 euros per litre excluding tax since the start of the week. He said the price surge makes fuel acquisition extremely difficult for farm businesses on the eve of critical autumn field work.

Non-road diesel, known in France as gazole non routier or GNR, is a tax-discounted fuel used specifically to power tractors, harvesters, and heavy machinery. The FNSEA, or Fédération Nationale des Syndicats d'Exploitants Agricoles, is France's largest agricultural union, representing farmers nationwide in discussions with government authorities.

Fuel Price Surge Prompts Calls for Higher Subsidies

Earlier on Tuesday, several ministers gathered for a joint press conference at the Ministry of Economy in Paris to detail government support measures. Minister for Small and Medium Enterprises and Trade Serge Papin announced that the executive was extending assistance to shield the sectors most exposed to energy inflation.

Alongside agricultural workers, the government extended its 15-cent fuel rebate until 31 December for fishermen and the construction sector, known in France as BTP for bâtiment et travaux publics. Papin justified the measures by stating that presenting a united front required helping the professions most vulnerable to rising fuel prices.

In an official press release, the Ministry of Economy, commonly known as Bercy after its location in Paris, confirmed that the GNR aid for farmers would continue identically at 15 cents per litre. However, the ministry indicated that this amount could still be adjusted during ongoing consultations regarding the government's support plan for farmers dealing with agricultural drought.

Rousseau responded that the government's 15-cent rebate made sense when diesel was around 1.20 euros per litre. Now that prices have crossed the 1.50-euro threshold, he argued that state support must rise to 30 cents per litre to keep farm businesses viable.

Delays in Subsidy Payments Spark Financial Strain

The FNSEA also called for the increased rebate to be applied directly at the bottom of fuel invoices to provide immediate relief. Rousseau pointed out that government reimbursements from April, May, and June were still delayed in several administrative departments across France.

Rousseau criticized the delays, stating it was unacceptable for farmers to make cash advances for fuel while facing severe financial pressures. He called on authorities to accelerate administrative procedures and make payments immediate, enabling farmers to navigate tension over energy access for their tractors.

French agricultural operations rely heavily on diesel during the late summer and autumn months for harvesting, soil cultivation, and planting winter crops. Fuel price spikes during this seasonal workload significantly increase operational costs for farms already facing environmental challenges such as drought.

Government Promises Accelerated Relief and Advance Payments

In response to concerns over delayed payments, the Ministry of Economy stated in its release that disbursements to farmers would be accelerated. Bercy confirmed that officials are examining the feasibility of issuing advance payments to alleviate cash flow bottlenecks.

Speaking at the press conference, Minister of the Economy Roland Lescure declared that overall support systems had reached cruising speed. He assured affected industries that payments across all aid mechanisms would be processed as quickly as possible.

The government's ongoing consultations with agricultural representatives will determine whether further modifications are made to the GNR subsidy before the end of the year.

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