German farmers face liquidity crisis as prices fall and costs rise

Joachim Rukwied, president of the German Farmers' Association, warned that German agriculture is on the brink of a liquidity crisis. Grain purchase prices are at unsustainably low levels, with the only exception being rapeseed. Pork purchase prices have dropped from over €2 per kilogram to about €1.50, and milk prices remain below farmers' expectations. At the same time, production costs are climbing: nitrogen‑based fertilizer prices are about 30% higher than a year ago and the national minimum wage has risen to €13.90 per hour, increasing labor costs for fruit and vegetable growers. Many farmers are cutting back on fertilizer use, which risks lowering wheat quality and shifting production toward lower‑value feed wheat. The combined effect of falling commodity prices and rising input costs threatens the solvency of farms across Germany.