(de-news.net) – Germany’s 2026 harvest has been sharply weakened by drought, heat and pest pressure, intensifying financial strain on farms. The government and farmers’ association are seeking faster payments, liquidity support and other relief measures, while organic producers face similar climate-related pressures.
Long-running drought and intense heat have sharply weakened Germany’s 2026 harvest, adding to financial pressures already facing agricultural businesses and prompting Agriculture Minister Alois Rainer (CSU) to call for a coordinated response. The German Farmers’ Association, or DBV, estimates that the country will produce 41.9 million metric tons of grain this year, 7 percent below the 45.2 million tons harvested in 2025. Average yields across grain crops are expected to fall 9 percent to 68.9 decitons per hectare, underscoring the extent to which weather conditions have affected production.
The most damaging conditions emerged during a critical period of crop development. A dry spring was followed by a heat wave in the second half of June and continued shortages of precipitation, with premature ripening reported in many areas. Southern and western Germany were particularly affected. In some regions, the lack of moisture resulted in substantially reduced yields, while individual crops suffered failures.
Winter wheat, cultivated on about 2.9 million hectares and Germany’s most important crop, is expected to produce 20.9 million tons, 7 percent less than a year earlier. Its average yield is projected to decline 9 percent to 72.1 decitons per hectare, although the quality of the grain has varied by region. Winter rapeseed has been affected even more severely. Yield is expected to fall by 20 percent to 29.1 decitons per hectare, leaving total production at only 3.3 million tons. In addition to heat and drought, crops faced heavy pest pressure and limited availability of effective treatments against flea beetles and cabbage seedpod weevils.
Winter barley has performed comparatively well. Production is expected to remain at about 9.5 million tons because a larger cultivated area offset a 4 percent decline in yield to 75.6 decitons per hectare. The crop was less exposed to the most severe heat because much of it had already matured and could be harvested early. Prospects are less favorable for other crops. Potato yields are expected to range from average to below average even on irrigated fields, while sugar beet conditions are considerably worse in some regions. At the same time, the reed glass-winged leafhopper continues to spread, adding another source of pressure on agricultural production.
Financial pressure mounts on farms
The weak harvest arrives at a difficult economic moment for farmers. Lower yields are coinciding with subdued producer prices and high costs for diesel, fertilizers and crop-protection products, placing significant pressure on farm liquidity. According to the DBV, some agricultural businesses already require interim or special financing to maintain operations and prepare for the next production cycle.
Rainer has stressed that farms need sufficient financial capacity to respond to deteriorating conditions, including the ability to purchase animal feed and other necessary inputs. Among the available measures is a 200 million euro liquidity-support program administered through Landwirtschaftliche Rentenbank. Farmers can also seek deferrals of social-security contributions through the Social Insurance for Agriculture, Forestry and Horticulture.
Additional relief measures are being considered. The government is examining whether lease payments owed to the state-owned BVVG can be deferred and whether repayments on eligible Rentenbank loans can be suspended. At the same time, efforts are underway to distribute European Union fertilizer assistance as quickly and with as few administrative obstacles as possible. The measures are intended to provide farms with additional room to manage immediate costs while maintaining the capacity to begin the next production cycle.
The response is also being coordinated across different levels of government. Rainer has sought to involve federal ministries, the states and the European Union, while regional authorities are expected to provide detailed assessments because they have the closest knowledge of local conditions. Official harvest data expected later in August will provide another basis for determining the scale of the damage and for subsequent policy decisions. Rainer has also indicated that European intervention could become necessary if the situation develops into a crisis of broader significance.
Germany’s constitutional division of responsibilities nevertheless gives the states primary authority over assistance for extreme-weather events such as drought. Federal involvement requires the damage to be classified as an event of national significance. Such a designation depends on an overall assessment of both the material damage and its economic consequences, meaning that the federal response is linked to the eventual scale of the losses.
Farmers seek liquidity measures
The DBV is pressing for emergency assistance to prevent current liquidity problems from disrupting preparations for the next harvest. President Joachim Rukwied has called for Germany’s EU-funded fertilizer assistance to be increased from the current 60 million euros to the maximum 180 million euros and distributed quickly, with payments ideally beginning in September. The association is also seeking a temporary reduction in diesel taxation through at least the end of November.
The timing of European Union direct payments is another central concern. Under the usual schedule, farmers receive 80 percent toward the end of December, followed by the remaining 20 percent. The DBV wants the first 80 percent to be paid as early as October and the remaining share to be guaranteed for December. Earlier payments would provide farms with additional liquidity at a time when preparations for the next production cycle are already underway and funds are needed for seed, fuel, fertilizers and crop-protection products.
The federal government has indicated that direct payments will receive the full available financial scope in 2027. As a result, the payments are expected to rise from approximately 4.1 billion euros in 2026 to 4.9 billion euros in 2027. The Agriculture Ministry has also abandoned the legislative procedure originally planned to determine the 2027 payments. The change reflects the government’s position that farmers require greater predictability and stability when weaker harvests coincide with rising production costs.
Organic farms also face weather pressure
Organic agriculture has likewise been affected by the year’s heat and drought. The Federation of Organic Food Producers reported that wheat yields were often around average, while millet and vegetables performed poorly and potato production declined. Conditions have therefore varied across crops and farms, although some organic producers have benefited from strong yields in the previous year, providing a limited degree of financial support.
Industry representatives have emphasized that climate change affects organic farming as well as conventional agriculture. They argue that spending on organic food production can simultaneously support biodiversity, water quality and greater resilience within agricultural systems. Those longer-term considerations, however, do not eliminate the immediate financial pressures created by a weak harvest.
For German agriculture as a whole, maintaining adequate liquidity remains the most urgent concern. Farmers must absorb the effects of reduced yields and high input costs while simultaneously financing the next production cycle. The combination leaves many businesses dependent on timely government assistance and other financing measures as they navigate a harvest year marked by drought, heat and unusually difficult operating conditions.
