French Government to Retroactively Enforce Agricultural Tax Measures from January 2026

As the 2026 Finance Bill (PLF 2026) debate approaches, the French government has declared its intent to retroactively apply several agricultural financial measures starting January 1, 2026. This announcement comes after Parliament's initial failure to adopt the bill, with key declarations by Roland Lescure, Minister of Economy and Finance, and Amélie de Montchalin, Minister of Action and Public Accounts.

Among the principal measures the government plans to defend are the extension of the precautionary savings deduction and exemptions from income tax on compensations related to sanitary culling of breeding animals, provided that farmers reinvest within two years to restore their herds. The government also seeks to maintain tax credits aiding organic farming and high environmental value certifications.

Further retroactive support includes adjustments from the 2025 finance law on dairy cattle stock valuation and inheritance tax exemptions for rural property transfers. Notably, some other agricultural tax measures favored by Parliament—like tax credits for collective mechanization and sustainable hedge management—were not addressed by the government statement, indicating that these proposals are neither comprehensive nor guaranteed to pass.

This move underlines the government's intention to promptly support the agricultural sector through fiscal measures starting in early 2026, although final parliamentary approval remains uncertain.