Enviro News Asia, Paris — France’s National Assembly on Monday, 2 February, adopted the 2026 Finance Bill in a final reading, enabling the government to roll out an agricultural emergency plan worth more than €300 million to support farmers and strengthen sector resilience.
The emergency package, announced earlier by Minister of Agriculture, Agri-Food, and Food Sovereignty Annie Genevard, allocates targeted funding to help agricultural sectors facing economic, environmental, and health-related challenges.
Under the plan, €130 million is earmarked for vineyard grubbing-up assistance, while €51 million is dedicated to ecological planning measures for agricultural value chains, including the Mediterranean Agriculture Plan, fruit and vegetable sectors, and protein crop development.
An additional €22 million emergency fund will support livestock farmers affected by contagious nodular dermatitis. The agricultural water management fund will be tripled to reach €60 million, and €40 million will be allocated as exceptional support for large-scale crop producers. The plan also includes €5 million to cover social security contribution relief for struggling agricultural sectors.
The government said the €300 million package represents a major intervention to modernize agricultural value chains, support environmental transitions, and enhance adaptation to climate change.
Beyond budgetary support, the 2026 Finance Bill introduces a broad set of fiscal measures aimed at improving farm competitiveness and financial stability.
These include the extension of the precautionary savings deduction scheme and the expansion of partial tax exemptions in cases of economic shocks, animal or plant disease outbreaks, or environmental incidents eligible for national or European compensation programs.
The law also provides income tax exemptions for sanitary slaughter compensation related to breeding animals, provided the funds are reinvested within two years to rebuild livestock. Tax credits for organic farming and for farms certified with High Environmental Value (HVE) status are both extended.
Local authorities are granted the option to broaden property tax exemptions for rural buildings used for both horticultural production and direct sales. In addition, adjustments will moderate cadastral rental values for agricultural product sales spaces that have been incorrectly classified as large retail outlets.
The Finance Bill maintains unchanged thresholds for capital gains tax exemptions on the sale of agricultural holdings compared to 2025 and retroactively adjusts two measures adopted under the 2025 Finance Law.
The 2026 Finance Law confirms the continuation of tax credits supporting organic farming and HVE-certified agricultural enterprises. These credits will apply from 1 January 2026 as tax credits rather than tax reductions, with legal regularization scheduled under the 2027 Finance Bill, to be applied retroactively if adopted.
The government said these fiscal incentives reaffirm its commitment to promoting organic agriculture and sustainable production models. (*)
