German Government Federal Budget 2026 reintroduced ag diesel relief

The draft German Government Budget for 2025 has provided for reintroduction of reimbursement of relief for agricultural diesel. German farmers will the reinstatement of the rebate they received in the past for agricultural diesel use in their farming operations. German agricultural contractors include the diesel cost as a separate item on their invoices to farmers to allow the farmers to get the relief on all agricultural diesel purchases, including diesel purchased from the agricultural contractor in the delivery of the contracting services.

The German machinery industry magazine Eilbote has reported that the reintroduction of the agricultural diesel subsidy is to be financed not from the budget of the Federal Ministry of Agriculture, but from the overall budget. The draft agricultural budget for 2025 largely corresponds to the proposal of the previous government. The announced agricultural diesel subsidy will be financed from the overall budget. The German Farmers’ Association is also counting on a further investment stimulus in the 2026 federal budget.

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