Read this blog to learn how the ecological transition in France will affect small farmers, both positively and negatively. Get all your SME news from Export Portal!
Following the scandals in the agricultural landscape in France, including the use of pesticides such as glyphosate in industrial agriculture, we are witnessing a rise in ecological awareness in the government.
The French government has made the development of organic farming its central priority for the next three years with the Ambition Bio 2022 program. The stated objective is to promote environmentally friendly production methods to ensure high standards of animal welfare and to preserve biodiversity. The program aims to reach 15% of agricultural lands devoted to organic farming in 2022.
For small farmers, this ecological transition in favor of organic farming represents a considerable challenge. They will have to adapt their production method to the binding specifications imposed by the government and the certification bodies, which will involve a significant investment in some cases. However, there are substantial benefits that can encourage those small producers to develop organic agriculture.
The tax credit granted to organic farmers is one of these benefits. The French General Tax Code in its Article 244 provides for a tax credit for agricultural companies operating in the field of organic products. Up to €3,500 per year is intended to cover certification expenses for organic farming. To benefit from this, farmers must have a minimum of 40% of their income from organic production.
Also, small producers who choose to convert to organic can also benefit from the Avenir Bio fund with an amount of €4 million, and will gradually increase to €8 million by 2022. This fund is meant to guarantee profitability for small farmers.
The growing interest in favor of organic farming and the government’s action is positive for French farmers who succeed in making this transition effective.