The Pressure Facing German Farmers
The food ecosystem is being reshaped by rising costs, stricter regulation, unstable weather conditions, and growing calls for sustainability. Farmers face mounting pressures, yet these challenges could also spark a needed transformation toward more resilient agriculture.
Complex web of pressures
Farmers who produce the nation’s food face a complex web of economic, environmental, and societal pressures that threaten both their livelihoods and the stability of the food system. Simultaneously, these challenges present an opportunity to accelerate a shift toward more resilient, regenerative, and future oriented farming.
Rising input costs
The cost of essential fertilizer, seeds, and fuel has climbed sharply over the past few years. The war in Ukraine intensified these trends, pushing fertilizer and energy prices higher. Although increased commodity prices in 2022 helped offset some of these expenses, few expect this balance to last. For many farmers, margins are tightening to unsustainable levels.
Critical factors include:
- Higher global energy prices
- Unstable fertilizer markets
- Increased seed and crop protection costs
Growing competition for land
Agricultural land was once used almost exclusively for food production. Now it is in demand for a variety of purposes. Renewable energy expansion, carbon credit projects, and bio-based materials all compete for space. As solar fields and wind turbines multiply, pressure on farmland rises.
Competing applications include:
- Renewable energy installations
- Carbon sequestration and climate projects
- Bio-based materials and synthetic aviation fuels
A potential decline in demand for biofuels, due to the shift toward electric mobility, may reduce some pressure, yet other emerging sectors will continue to require land.
Regulatory tightening and climate commitments
The EU’s Farm-to-Fork strategy, Germany’s implementation of the Common Agricultural Policy, and global agreements like the COP15 biodiversity framework are reshaping expectations for agricultural practices. The urgency is clear: agriculture accounts for significant greenhouse gas emissions. Agriculture contributes roughly 12.5% of Germany’s greenhouse gas (GHG) total Scope 1 emissions. Scope 1 emissions are direct GHG emissions that occur at sources owned or controlled by a company including, for example, emissions from combustion in owned or controlled boilers, furnaces, and vehicles, or emissions from chemical production in owned or controlled process equipment. Regulatory pressure will only intensify as the country’s efforts toward climate targets.
Increasing climate instability
Farmers are on the front lines of climate change. Droughts, heavy rainfall, and storms are becoming more frequent and more severe, disrupting yields and threatening long-term soil health. The shifting climate adds uncertainty to crop planning and forces farmers to adapt more quickly than ever before.
Rising Societal Expectations
German consumers demand food that is healthy, sustainable, and produced to some of the strictest standards in the world. Yet they also feel the pressures of inflation. This places farmers in a difficult position: producing more sustainably while keeping prices low.
Consumer expectations include:
- Reduced environmental footprint
- High animal welfare standards
- Greater transparency across the value chain
Supply insecurity
Geopolitical instability has underscored the importance of domestic food production. To safeguard supply, Germany has recently relaxed some environmental restrictions to boost short-term yields. However, these rapid policy shifts make it challenging for farmers to plan investments or adopt long-term sustainable practices.
Current pressures include:
- Maintaining low consumer prices
- Ensuring secure supply of core crops
- Navigating policy adjustments
While these pressures are daunting, they also create momentum for meaningful change. Regenerative agriculture, focusing on soil health, biodiversity, and efficient use of inputs, offers a pathway to resilience and profitability. With the right support, German farmers could lead a modern, climate-friendly food system that meets consumer expectations while securing the nation’s food supply future.