Maize Down

Luxembourg's farmers are facing mounting financial pressure after an exceptionally hot and dry summer hit grass and maize yields across the country. The Agriculture Committee chair warned that the latest weather-related difficulties came on top of several successive crises, including higher energy and fertiliser costs.

This year's maize crop is down by around 20% to 25%, compared with yields around 10% to 15% above normal last year. Farms that had been able to carry feed over from last year were therefore under less immediate pressure. Others had been much harder hit, with insurers reporting "100% losses" in maize in some areas.

Reducing herds

Some livestock farmers have already begun reducing their herds in response to the shortage of feed, selling animals that would otherwise have been kept for breeding or sending cattle to slaughter earlier than planned. Liquidity was now "the biggest problem" for many farms, particularly as several difficulties were occurring at once while milk and grain prices remained low.

A draft law following the agricultural tripartite talks could provide some relief, with aid due to be paid as a per-hectare supplement. Crop insurance is also expected to play a significant role this year, with the Luxembourg state covering 65% of farmers' insurance premiums and around 54,000 hectares currently insured.