German Winegrowers Face Rising Costs and Falling Incomes

Farmers in Germany face fluctuating earnings, making subsidies an important part of their income. In 2023, their earnings were high — but there are huge differences in the sector. 

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Business result of crop farms and wine growers
Business result of crop farms and wine growers

For German agriculture, 2022/23 was a positive year, attributed by the German Farmers' Association to a tight global supply situation that led to higher prices. However, the situation in viticulture has developed in the opposite direction. Rising costs are drastically reducing incomes.

 

In addition to the usual expenses of agriculture, viticulture has also been hit by a surge in glass prices and has to deal with significantly higher lease costs.

Average rental price for 1 ha of farmland
Average rental price for 1 ha of farmland

"Practitioners need to be heard more."

Joachim Rukwied

"The time is overdue for practitioners to receive greater attention and for their expertise to be more extensively integrated into political decisions. We, the farmers, are the cultivators of the future, guarantors of a high-quality food supply, entrepreneurs for nature and climate protection, and an essential component of vibrant and habitable rural areas. Ultimately, the future of agriculture is also fundamental to the sustainability of our economy and society." 

 

Joachim Rukwied
President of the German Farmers' Association

Source: Agricultural Situation Report 2024, German Farmers' Association

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It's not just a hospitality problem. Other sectors within the wine industry are also lamenting a lack of workers.

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