Germany’s grains harvest this year is likely to fall by about 22 percent affecting 10,000 farms. It's after crops suffered from the heatwave and drought according to the German farmers’ association (DBV).
The government will step in to help struggling farmers with an aid programme.
Julia Klöckner, German Minister of Agriculture says, "There can't be a full comprehensive compensation for the farmers. And so my suggestion to the (German) states is, that they will cover 50% of the damages, that makes €340 million of federal financial aid."
It could threaten farmers to reduce their number of cattle because of the lack of feed.
And there are growing concerns about the fruit market, which is yet to come, and sugar beets and potatoes.
Thomas Gäbert, farmer says "The sign which came today from the Federal Ministry of Agriculture is certainly a good one for most farmers in Germany. Because this gives us a volume at our disposal, which farmers who are most affected can be helped in times of need, so that they do not have to give up. That's a good thing for now. There are many colleagues who are thinking about reducing their workload to a certain extent, giving up certain areas of operation - such as pig farming. There are already many in the process of reducing the workload. But there will be no great abandonment or a great end to farms."
Germany is traditionally the EU’s largest grain producer after France and a major cereals exporter. It's one of several north European countries that have suffered serious harvest damage this summer.