Agricultural Diesel Refund Returns from 2026

The federal government has decided to fully reinstate the agricultural diesel refund starting January 1, 2026. Businesses will then be relieved by 21.48 cents per liter of diesel – instead of just 6.44 cents as before. The new budget draft for 2025 also brings further relief for Germany’s winemakers, farmers, and foresters.

“We are relieving family farms, creating more planning security, and simultaneously strengthening competitiveness,” said Federal Minister of Agriculture Alois Rainer (CSU).

The return to full reimbursement was one of the central promises from the coalition agreement and a long-standing demand of farmers and winemakers. With the budget draft, the project is now becoming a reality. The federal government is providing around 430 million euros annually for this purpose. This is, according to Rainer, a “clear signal of reliability.”.

The agricultural diesel refund brings an average annual relief of around 2,790 euros per business, depending on the size and type of the business. The tax relief occurs through a deferred relief procedure. This means: Businesses must submit an application, and the repayment occurs in the following year.

Despite a tense budget situation, the Federal Ministry of Agriculture, Food and Home Affairs (BMLEH) was able to maintain its budget at the level of previous years. “Our budget remains stable at a consistently high level – a success given the strict savings requirements,” said Federal Minister Rainer. Investments in agriculture and viticulture as well as rural areas are thus secured.

Another important component of the budget plan: The Agricultural Accident Insurance will receive an increased subsidy of 20 million euros from the federal government in 2025. The background is the increasing burden due to the recognition of Parkinson’s disease as an occupational disease. The increase is intended to help mitigate impending contribution increases and financially relieve businesses.

In addition, the BMLEH is to receive around 20 million euros annually from the special fund for digitization and research. Part of this will flow into the Climate Transformation Fund (KTF), primarily to strengthen the forest. The energy efficiency program will also be financially expanded.

(ru)