ANNOUNCEMENT 01 Jan 2010In January 2010, the government of Germany announced a change in production support.
NUMBER OF INTERVENTIONS
24th subsidy report by the Finance Ministry, pp.104-105 (in German)
On 1 January 2010, the German government introduced the Grassland Milk Programme ("Grünlandmilchprogramm") aimed at supporting dairy farmers. The state aid will be delivered to the farmers as a premium on the number of cows and the size of the grassland.
According to the 24th subsidy report by the German Finance Ministry, the measure is supposed to stabilise the income and liquidity of German dairy farmers. The premiums are also designed to stop dairy farmers from abandoning dairy farming on grassland.
The budget of the programme was 183.9 million EUR in 2010 and 200 million EUR in the following year, after which the programme was ceased.
In the GTA database the determination of whether a policy instrument discriminates against foreign commercial interests turns on whether it creates or alters the relative treatment of domestic firms versus foreign commercial interests. On this metric, the state aid proposed here is discriminatory because the state aid is not available to competing firms outside of the implementing jurisdiction.