France announces zero-interest loans to support drought-stricken farmers

French Agriculture Minister Annie Genevard has announced several support measures for farmers facing severe drought and economic pressure. Speaking at the Sommet de l’élevage, Genevard proposed zero-interest loans that could cover up to 2 billion euros to help producers purchase forage and inputs. Under this plan, the state would cover the interest gap for loans provided by banks at approximately 2.5 percent. The implementation of these loans is contingent upon the adoption of the 2027 budget.

Additional measures include specific support for newly established farmers to reschedule loans and the release of 21 million euros from the agricultural rearmament fund. The Minister also addressed concerns regarding fertilizer assistance and the need to rebuild trust in satellite-based insurance systems.

These announcements come amid reports from Agreste showing that grass growth deficits in France have reached unprecedented levels, with permanent pasture growth down 42 percent compared to the 1989-2018 reference period. Furthermore, regulatory easing has been announced for cattle movements in the Bourgogne-Franche-Comté and Auvergne-Rhône-Alpes regions due to improved vaccination dynamics against contagious bovine nodular disease.