Switzerland approves CHF70 million in drought aid for farms and forests

Switzerland has reached mid August with its lowest recorded rainfall for that point in the year. Environment Minister Albert Rösti said the prolonged dry spell is pressing on livestock, waterways, ecosystems, forests, farms, power generation and river transport.

The Federal Council has responded with new money for the two sectors most directly exposed to the weather. Farms will receive CHF 54 million in interest free loans to help absorb lost income. Forest climate adaptation funding is set to rise by CHF 17.5 million in 2027, with a similar annual amount potentially available from 2028.

The government and source material describe the package as CHF 70 million, although the two published allocations add up to CHF 71.5 million. The difference should be clarified as Parliament considers the forest request and the wider drought response.

The immediate problem is liquidity. Farmers are paying more for feed, spending extra hours managing stressed fields and harvesting smaller crops. Forest owners face the longer task of helping woodlands withstand heat, water shortages and changing growing conditions. The decision places drought support inside existing federal programmes while leaving cantons and municipalities responsible for many local measures.

Farmers will receive CHF 54 million through loans, not grants. The money is designed to keep the hardest hit holdings liquid while they manage lower yields and rising operating costs.

Christian Hofer, who leads the Federal Office for Agriculture, identified three pressures: higher feed bills, additional work in the fields and weaker production. Potato and sugar beet output has fallen by 20% to 25%, according to Hofer. Milk production is also declining as feed becomes harder to secure.

The shortage extends beyond Swiss borders. Some farms have had to slaughter more animals because they cannot obtain enough feed. Slaughterings doubled in July, adding supply to a weak meat market and pushing prices down. That combination leaves farmers with higher costs at the same time as several revenue streams deteriorate.

The loans can help farms meet bills, but they will increase future liabilities. Rösti acknowledged that they are no cure for every business under pressure. He also said some farms could fail for economic reasons, noting that the number of Swiss farms and farmers has fallen every year regardless of heatwaves. Switzerland’s small, fragmented holdings often lack the scale to spread machinery, buildings and labour costs across large areas.

Forests will receive CHF 17.5 million for climate adaptation in 2027. The Federal Council is asking Parliament to approve the increase, while signalling that a similar sum could be made available each year from 2028.

The forest measure looks beyond the immediate accounts of a farm. Swiss woodlands regulate water, protect slopes and settlements, provide habitats and support regional economies. Extended heat and drought weaken trees and ecosystems, increasing pressure on forest managers to adapt their practices and protect vulnerable areas.

The funding still requires parliamentary approval. That gives legislators an opportunity to examine how the money will be allocated, which adaptation projects qualify and how federal spending should interact with cantonal responsibilities. The government has not declared a national emergency, and Rösti argues that existing law provides sufficient authority to act.

The timing exposes a difficult policy balance. Emergency relief must move quickly when water shortages damage crops and livestock. Forest adaptation requires longer planning, stable financing and decisions that may not produce visible results in a single season. By proposing recurring funding from 2028, the Federal Council is treating forest resilience as an ongoing public investment rather than a one off response to this summer’s weather.

The government has rejected calls to declare an emergency. Rösti and senior officials from agriculture, the environment and national economic supply defended the measures already taken and those still being prepared. They say the federal system is operating within its existing legal framework, with cantons and municipalities retaining important responsibilities.

That position has drawn political criticism. The Greens have called for a new state secretariat for climate protection, while party president Lisa Mazzone has argued that the environment portfolio should be removed from Rösti. Rösti told RTS that criticism was part of political life, particularly with elections a year away, and rejected the case for reorganising the federal administration.

The Socialist, Green and Green Liberal parties want an extraordinary debate during Parliament’s autumn session. Their intervention will test whether the government’s limited, sector based response is sufficient for a drought affecting public health, animal welfare, waterways, transport and energy production as well as agriculture.

Rösti has also stressed that many responses belong at cantonal and municipal level. The federal government could support building improvements that protect people from extreme heat, but it has not transferred every responsibility to Bern.

The federal government will review the situation by October. Its assessment will cover public health, animal welfare, nationwide heat maps and additional agricultural measures. The review will determine whether the current support package needs to expand as the dry spell continues.

For farmers, the crucial issue is whether loans can bridge a single bad season or leave already fragile businesses with debts they cannot service. Switzerland’s agricultural structure makes that question particularly sharp. Many holdings are small by European standards because of mountainous terrain, fragmented ownership and the country’s long effort to maintain farming in difficult regions. Subsidies help preserve those farms, while high machinery, building and labour costs limit their ability to compete on price.

Forestry faces a different time horizon. A single wet season would not remove the need to prepare woodlands for repeated heat and water stress. The proposed recurring funding from 2028 points toward that longer challenge, although Parliament must still approve the first increase.

The drought response will therefore be judged on two tracks: whether emergency credit reaches farms quickly and whether Switzerland builds durable protection for land, forests, animals and communities. The autumn debate will show how far federal policymakers are prepared to extend that work.