Since early June, there has been hardly any rain, and one heatwave follows another. Entire regions are already not only yellow but brown. More or less the whole of Switzerland and almost all areas of production are affected, albeit in different ways.
Missing Feed in Animal Husbandry
The grass has ceased to grow in most regions weeks ago. In certain areas, the plants are completely withered, so even with sufficient rain, there will be no prospects for another adequate feed harvest or green pastures. Farms have often been feeding their cows, cattle, and other grass-eating livestock with the winter feed for weeks. For many, it is already clear that it will not last until the next spring. Then there are two options: buy feed or slaughter animals. Buying feed is challenging both domestically and abroad, as the drought is not much better in neighbouring countries. Those who still have feed available in the country can report this to one of the organized feed markets (e.g., Futterbörse Berner Bauernverband, Futterbörse Zürcher Bauernverband). Due to the difficult feed situation, slaughter numbers are increasing. On the other hand, milk production has significantly declined due to heat-induced lack of appetite and a new disease from warmer climates. In the Alpine region, dwindling water sources add to the feed shortage, prompting some Alps to be evacuated prematurely. Others are sourcing water via road or helicopter transport to benefit from the summer pastures' feed for as long as possible.
Parched Arable Crops and Expensive Irrigation
In arable farming, dryness intensified during the ripening phase of cereals and rapeseed, so yields were largely still good here. However, it is a different story for standing crops such as potatoes, sugar beets, or sunflowers. With each day without rain, their harvest prospects worsen. The national extent will only become apparent later. It also depends on how the weather continues to develop. Even with irrigation, the heat harms potatoes and stops the growth of the tubers. Quality losses in size and shape are expected. In fruit and vegetable cultivation, hardly anything is happening without irrigation. Especially the irrigation of large-scale vegetable crops is laborious and expensive, compounded by heat-induced quality losses.
Harvest Losses and Drought-Induced Additional Costs Increase Economic Pressure
Harvest losses and additional costs lead to rising production costs for agricultural products and exacerbate the economic situation of farms. The Swiss Farmers' Union (SBV) is doing its utmost to support them in this currently burdensome situation. It has lobbied with the Federal Office for Agriculture for the exceptional rules on direct payments granted, which the cantons implement. This means that businesses still receive direct payments even if individual requirements cannot be met or fully met (e.g., minimum grazing on pastures). Similarly, there will be single crop payments even if nothing can be harvested due to drought. Furthermore, it advocated for the suspension of tariffs and duties on imported roughage. These were granted with an exception for whole-plant maize on 1st August. The tariff for whole-plant maize will also be removed from mid-August.
Producer Prices Must Cover Additional Efforts and Losses
The most crucial point for businesses is that producer prices should absorb the increased production costs for the affected products and rise accordingly. Moreover, quality requirements must be adjusted. Accordingly, the Farmers' Union is directly engaging with retailers and indirectly with industry organisations for cost-covering producer prices that also account for reduced yields. The Farmers' Union also calls on the cantonal credit funds to grant easy access to operating aid loans (interest-free loans) or show leniency with investment loan repayments. To ensure water supply in the summering areas, the cantons can make a request to the army.
Reduce Emissions and Implement Adaptation Measures
For all the points mentioned, it is about ensuring immediate help. Medium- and long-term measures are needed from the farms, but also from the federal government and the retail sector. For farms, it is partly about adapting to climate change through the choice of crops and optimised management, acquisition of irrigation systems, and access to water, e.g., through retention basins, and partly about implementing effective emission reduction measures. The federal government is particularly challenged to support farms with necessary investments and measures, enhance research, and support insurance solutions. Therefore, the Farmers' Union is committed to ensuring that the necessary funds are available for investment assistance. Finally, the buyers and retailers have the greatest leverage. Fair producer prices that enable better incomes and allow agricultural enterprises to buffer losses, make investments, and continue to develop. The current downward price spiral in shops ultimately harms both the ecological, economic, and social sustainability of domestic agriculture and domestic supply security.
Inquiries:
- Martin Rufer, Director SBV, Mobile 078 803 45 54
- Michel Darbellay, Deputy Director SBV, Mobile 078 801 16 91
- www.sbv-usp.ch