Bavarian agricultural support and relief measures

The Bavarian government is implementing various measures to support the agricultural and forestry sectors through financial incentives and relief efforts.

Under the Bavarian Cultural Landscape Program (KULAP), the state is offering subsidies for agroforestry systems. These systems, which combine crop or livestock farming with woody plant strips, can receive funding covering up to 65 percent of net installation costs. Agriculture Minister Michaela Kaniber noted that these systems aim to connect production with climate and resource protection by mitigating erosion and promoting CO2 sequestration.

To address a drought crisis, Finance Minister Albert Füracker is pushing for tax relief and reduced bureaucracy. The state plans to submit a motion to the Bundesrat’s finance committee regarding the annual tax law. Key proposals include a tax-free risk equalization reserve to help farmers manage income fluctuations, the abolition of double real estate transfer tax for land acquisitions by recognized settlement companies, and the simplification of documentation for small and medium-sized enterprises, such as removing cultivation register obligations and easing tax registration for reporting forest damage.

Efforts to increase climate resilience also include practical land management, such as the use of hedgerows to combat soil erosion, reduce wind speeds, and mitigate evaporation. Additionally, the Bavarian Farmers’ Association (Bayerischer Bauernverband) has launched a dialogue process to explore the future of agriculture through 2040, using a discussion paper to address potential scenarios involving global crises, climate change, and water scarcity.