UFOP Welcomes Federal Minister Rainer’s Initiative to Exempt Biofuels Used in Agriculture from Tax

Berlin, May 4, 2026 – The UFOP strongly supports the proposal made this weekend by Federal Minister of Agriculture Alois Rainer to exempt biofuels from energy taxes in order to make their use in agriculture more attractive. This aligns with the call in the federal government’s coalition agreement to promote the use of alternative fuels, including biofuels. 

Federal Minister Rainer is thus responding to a long-standing demand by UFOP to clear the way for the use of sustainably certified biofuels in agriculture. The conflict in the Middle East currently demonstrates how quickly and effectively supply chains once believed to be secure can be disrupted and become a pawn of the parties to the conflict. This should be the final impetus to leverage the existing potential at both the national and EU levels and deploy it specifically where it can make a tangible contribution to securing fuel supplies, reducing costs, and improving farm liquidity. In a networked bioeconomy, this would simultaneously enable the greatest contribution to value creation and climate protection, in line with the agricultural sector’s obligations. At the same time, UFOP shares the minister’s holistic approach of including, in addition to biofuels, drive systems that can be electrified on farms in the considerations. 

UFOP emphasizes that the multitude of existing options on farms must be developed and promoted in the best possible way through integration, and therefore recommends continuing cooperation with the Board of Trustees for Technology and Construction in Agriculture (KTBL) in this area. The catalog of measures developed by the KTBL on behalf of the BMLEH for the gradual introduction of biofuels in agriculture provides a comprehensively coordinated framework of action areas that must be taken into account to ensure that the transition can be implemented as smoothly as possible. 

The association emphasizes that the requested tax exemption for biofuels not only represents a step toward strengthening the energy supply but also makes an important contribution to greater self-sufficiency in the supply of 

domestic feedstuffs through the co-products associated with the processing of agricultural raw materials. 

UFOP expects that a tax exemption introduced in this country would motivate other EU member states to create a similar support framework. The energy sector is important for buffering the supply of raw materials to stabilize producer prices and for developing additional opportunities for value creation on farms. However, the latter requires reliable framework conditions, UFOP notes. 

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