German tax break pumps 285 million euros into farming

German tax break pumps 285 million euros into farmingBerlin - Germany is to offer farmers a tax break on fuel for the next two years, pumping 285 million euros (385 million dollars) per year into struggling agriculture, the parties in Chancellor Angela Merkel's coalition said Monday.

The officials who negotiated a cross-party policy said in Berlin that minimum and maximum limits on existing refunds of diesel tax to farmers would be suspended. That would mean refunds from the very first litre, and also beyond an existing upper limit of 10,000 litres per farm.

The tax break is to be back-dated to the start of this year.

Dissatisfaction has been rising in German farming, especially over weak milk prices, in recent weeks. Farmers have been largely supportive towards Merkel, who faces the polls in a general election in September. (dpa)