Switzerland unlocks CHF70 million to address drought damage

Switzerland has recorded its lowest rainfall by mid-August ever measured, according to Environment Minister Albert Rösti. The Federal Council is responding with a package worth more than CHF70 million for farms and forests facing crop losses, feed shortages and rising climate risks.

The announced allocations total CHF71.5 million. Farmers will receive CHF54 million in additional interest-free loans this year. The money is designed to help businesses absorb lost income, higher feed bills and extra labour caused by the dry spell. Forest owners are set to receive CHF17.5 million for climate adaptation measures in 2027, subject to Parliament approving the increase. A similar amount could follow annually from 2028.

Rösti said the prolonged drought was affecting vulnerable people, livestock, waterways, ecosystems, forests, agriculture, electricity production and river transport. The government has chosen to work through existing federal, cantonal and municipal structures. It has rejected calls to declare a national emergency, arguing that the current legal framework gives authorities sufficient tools.

The immediate pressure is concentrated in rural communities, where a poor harvest can damage cash flow long before the full economic impact appears in food prices or farm closures.

Farmers will receive CHF54 million in interest-free loans, not direct grants. The measure is intended to protect liquidity while producers cope with lower yields and sharply higher operating costs.

Christian Hofer, head of the Federal Office for Agriculture, said drought had increased feed expenses and field work while cutting production. Potato and sugar beet output is down by an estimated 20% to 25%. Milk production is also falling. Some farms have slaughtered additional animals because they cannot secure enough feed, with supplies limited both in Switzerland and on international markets.

Slaughterings doubled in July, adding pressure to meat prices as more animals entered the market. The sequence is damaging for farmers: feed becomes more expensive, production falls, and livestock sold under pressure can produce lower returns.

The loans will give the hardest-hit businesses time to manage immediate bills. They will also add debt. Rösti acknowledged that the support cannot guarantee every farm’s survival. Swiss holdings are often small by European standards because of mountainous terrain, fragmented land ownership and the country’s agricultural structure. Machinery, buildings and labour costs therefore fall on relatively few hectares or animals. Existing subsidies help sustain farms in difficult regions, but many remain exposed when weather cuts production.

Forests will receive CHF17.5 million for climate adaptation in 2027, with a possible repeat from 2028. The proposed funding recognises that drought damage can continue long after rainfall returns.

Dry soils and heat weaken trees, reduce their ability to resist pests and increase the risk of forest decline. Swiss forests also provide services beyond timber production. They protect settlements and transport routes from rockfall and avalanches, support biodiversity, store carbon and help regulate local water systems. A stressed forest can become a public safety concern as well as an environmental one.

The Federal Council wants Parliament to increase adaptation funding next year. From 2028, a comparable annual amount could be made available. The plan places forest management inside a longer-term climate policy, rather than treating the current drought as a single-season loss.

The government’s wider review will examine heat maps, public health, animal welfare and further agricultural measures. Rösti has said cantons and municipalities should handle many responsibilities because they manage local conditions and infrastructure. Federal funding can still help pay for protective improvements, including measures that reduce extreme heat around buildings and vulnerable communities.