Rising electricity costs are also causing problems for farms. That is why the cabinet has now decided on a subsidy for farmers, which will be paid from the second quarter of 2023. The amount is at least 100 euros.
“The price increase also has a huge impact on agriculture and puts some of our farms under great pressure. The cost development is so dramatic that many wonder whether the operation is even worth it at all,” said Agriculture Minister Norbert Toschnig (ÖVP) Monday. In some cases, electricity costs would have increased fivefold.
Financing for 145,000 companies
That is why the government is now making a total of 120 million euros available to cover the additional costs. The fixed basic rate (first phase) is 10.4 cents per kilowatt hour consumed, with each farm receiving a minimum of 100 euros. The fixed base rate will go to around 110,000 companies across Austria and will be paid automatically from the second quarter of 2023. The condition for this is that the company that processes the payments is registered in the Agrarmarkt Austria (AMA) system.
Subsidies for another 35,000 companies that have to apply for additional financing (second phase) will only follow in the second half of the year. Companies with higher energy consumption come into question, for example if they produce wine, run a wine bar or rent out rooms. In the second phase, the compensation will be based on consumption, said the head of the department of the Ministry of Agriculture, Johannes Frankhauser. “First and second stage are also possible in combination.”
More grants
It was previously decided to provide further support for agriculture, such as the security of supply package, which will be paid out in December, and a subsidy for the cultivation of fruit and vegetables in greenhouse horticulture. There are also compensation payments for the high price of agricultural diesel.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
