During his presentation, the Prime Minister was accompanied by Barbara Pompili, Minister for Ecological Change, Bruno Le Maire, Minister for Economic Affairs, Finance and Recovery, and Julien Denormandie, Minister for Agriculture and Food.
Faced with the war in Ukraine, the government is deploying specific responses to support companies and sectors affected or likely to be affected.
Find all the national initiatives and the dedicated frequently asked questions on the website of the Ministry of Economy, Finance and Recovery.
The agricultural and agri-food component of the economic and social resilience plan was detailed.
The consequences of the war in Ukraine
The war in Ukraine has immediate consequences for the French agricultural and food sector, upstream and downstream. They face three challenges:
- The current rise in energy prices, and as an immediate effect, the rise in fertilizers, some of which are imported from Russia or Belarus;
- The rise in world grain prices, of which 30% of world exports are supplied by Ukraine and Russia – even though France is independent and an exporter;
- The increase in the cost of animal feed, of which Ukraine is a major producer and which accounts for up to 60% of the cost of input.
Julien Denormandie, however, remembered that there was none “risk of shortage in France because our agriculture, our agro-food chain is solid, strong and sovereign”.
Four immediate measures
To respond to these challenges, the Economic and Social Resilience Plan implements four immediate measures:
1. Faced with the rising cost of animal feed : The government is implementing an extraordinary measure by covering part of the extra food costs. With a budget of 400 million euros, this measure is targeted at farms that are heavily dependent on food purchases and that will experience losses as a result of this increase. This support will be for a period of 4 months from 15 March with initial payments within two months. A consultation of livestock representatives will be organized to clarify the system.
On this subject, the Prime Minister recalled the government’s support ” breeders who have to deal with the sky-high cost of animal feed in a context that is already marked by historically high prices. “
2. Faced with rising fuel costs :
- The cross-cutting discount target of 15 cents exclusive tax also applies to GNR (non-road gas) used by farmers.
- Early repayment of 2021 TICPE and, upon request, a deposit of 25% for 2022 TICPE, which will be paid upon declaration from 1 May 2022.
“These measures should lead to a reduction in fuel costs and relieve the cash flows of our farmers and breeders”, said the Minister.
3. Faced with the rising cost of gas : Agricultural, forestry and agri-food businesses are made eligible for support for gas and electricity consuming businesses. This cross-cutting support will benefit companies whose gas and electricity costs account for at least 3% of costs and which would be loss-making in 2022 due to the increase in their energy costs. Half of the excess energy consumption will be covered within the limit of their losses.
4. Faced with additional difficultiesthe budget for social contributions this year will be supplemented by a further 60 million. EUR to take account of operations facing increases in fees that significantly impair their operating account.
Four further initiatives
1. Open new trade negotiations to secure producers and agri-food companies. New negotiations were thus launched on 18 March on the basis of a transparent and constructive dialogue between the parties, with the implementation of indexation and renegotiation mechanisms as well as the design of logistical sanctions.
2. Secure the 2022 campaign in fertilizer for the end of the year:
- Establishment of a working group to secure imported raw materials and national fertilizer production;
- Adaptation or postponement of regulatory measures that may affect the availability of fertilizers in 2022;
- Development of the use of locally produced organic fertilizers.
3. Make more vegetable protein : extraordinary European and French measures will be activated in 2022, in particular for the restoration of fallow land.
4. Get out of our addiction : France has made food sovereignty a political priority for 5 years, especially with the contribution of France Relance and the France 2030 plan. This plan is an opportunity to accelerate long-term transformation in the service of sovereignty and food independence by around 4 points:
- The implementation of a “nitrogen sovereignty plan” by promoting the production of green manure and the development of organic fertilizer recovery sectors;
- Strengthening the plan for vegetable protein in the framework of France 2030;
- The development of a sovereignty plan for agricultural and food energy to accelerate the development of renewable energy and the “decarbonisation” of upstream agriculture and agri-food industries;
- Finally, the development of a French and European sovereignty plan for “fruits and vegetables”, which closely associates the overseas territories.
Find the full economic and social resilience plan here.