Agricultural sector remains future industry

“The agricultural sector remains a future industry – in Germany, Europe and worldwide. However, the current economic atmosphere and the investment climate in the German agricultural sector, show that the political conditions for further development and innovation are in need of improvement”, states Werner Schwarz, vice chairman of the Deutschen Bauernverband (DBV) and chairman of the DBV Schleswig-Holstein, at the opening of this year’s agricultural finance conference of the DBV and the agricultural annuity bank in Berlin on the 22. April 2015 . The agricultural sector is a strong economic power in the rural area. With a diminished, though also an altogether high willingness to invest, the agricultural sector remains interesting to their bank partners, Schwarz states.

Uncertainty leads to investment restraint
Schwarz pointed out, that the upcoming revision of the Düngeverordnung, the implementation of the minimum wage and the bureaucracy of the current agricultural reform are currently contributing to uncertainty among the growers and to an investment restraint.

Common guarantee program for the agricultural sector
From the side of the agricultural sector and the banks, the announcement of the Verband Deutscher Bürgschaftsbanken was welcomed at the agricultural finance conference. From the fourth quarter of 2015 onward, a simple, cost-effective bank guarantee program that is low on bureaucracy should be implemented, which is offered through the guarantee banks of the federal states. In collaboration with the annuity bank and with support from the DBV, the Verband Deutscher Bürgschaftsbanken has succeeded in opening up a common guarantee program for the agricultural sector, attached to the European investment fund.

For more information: www.bauernverband.de