Agricultural Aid Package Prepared in France Due to Drought

Within the scope of the announced aid plan, a local recovery fund is being established so that farms can purchase seeds, seedlings and animal feed after agricultural lands dry up due to drought.

Other measures included in the package include land tax exemption, support for social security premium payments and fuel subsidies.

FNSEA, the country's main farmers' union, reported that agricultural production losses this summer will exceed 10 billion euros, and losses of over 5 billion euros have already been calculated for both the livestock and crop production sectors.

A new heat wave is expected to be more effective this week in the country, which is the largest agricultural producer in the European Union.

According to a ministry document provided to journalists and quoted by the AFP agency, other sectors were also affected by the heat wave, but the effects at the macroeconomic level are expected to remain more limited.

In her assessment in mid-August, French Environment Minister Monique Barbut stated that the direct and indirect effects of heat waves would cost the country between 10 and 15 billion euros (12 to 17 billion dollars).

Earlier this year, the French government estimated gross domestic product growth for 2026 at 0.7 percent.

However, economists warn that this target is difficult to achieve after the economy contracted by 0.2 percent in the first three months of the year and growth stopped in the second quarter.