Austria will start subsidizing the costs of diesel fuel for its farmers to help them cope with rising prices and reduce the impact of persistent drought on their livelihoods.
Tensions in the Middle East are disrupting fuel supply and pushing up diesel prices, weighing on the country's economy.
Maria Trunner, a farmer in Vienna who took over her father's wheat and soybean farm 12 years ago, has been forced to rethink her choice of crops. At that time, growing machinery-intensive crops was far less expensive.
"The extra costs we are facing now are enormous. A tractor like this one holds just over 200 liters of diesel, and that only lasts a full day of working when you are ploughing," she said.
Relief is on the way, as the government has introduced a diesel subsidy of 18 U.S. cents per liter for farmers, covering this year and next year.
However, the harvest may still fall short. Over the past six months, many regions of Austria have experienced their driest conditions in 140 years.
"It's brilliant that the diesel subsidy is coming now. Otherwise, many farms wouldn't be able to find the cash to pay for the fuel before the harvest," said Trunner.
Experts warn that this year's harvest could be down by as much as 30 percent. Combined with soaring costs for diesel and fertilizer, many farmers say their livelihoods are at serious risk even as consumers face spiraling food costs.
"I think this year has been an extremely difficult one. We are experiencing severe droughts. And, of course, we would have liked to see more financial support for farmers. But with tight budgets, we have to be grateful that we've managed to secure any support at all," said Norbert Walter, President of the Vienna Chamber of Agriculture.
Even with the diesel subsidy, the cost of operating tractors remains too high for many farmers, prompting some to switch away from wheat and towards vegetable crops that require less machinery.
"If there are alternative crops that require less use of the tractor, it might well be more financially viable," said Trunner.
Austria introduces diesel subsidy for farmers to cope with rising price
