When does funding for agriculture take effect?

The 54 million francs allocated by the Government for agricultural aid are available in 2026. This is a one-off (non-recurring) measure to address the liquidity crisis caused by the record summer drought. Affected farmers can claim interest-free credits from the competent cantonal administrations (Office of Agriculture) of their canton of residence or where the holding is located.

Who can access farm loans?

Drought-stricken and cash-strapped farms can claim interest-free loans from their home cantons. It is necessary to demonstrate the concrete damage from the drought (reduced harvests, additional costs) and submit a financial repayment plan. Perfect creditworthiness is not required: the priority is the documentation of the crisis situation related to the 2026 summer drought and the ability to repay the capital in the agreed time.

Does the interest-free credit haveto be repaid?

Yes. The 54 million is subsidized credits, not grants or non-repayable direct aid. The company receives a zero-interest rate loan, but must repay the principal according to a plan agreed with the canton. This drastically lowers the cost of liquidity compared to an ordinary bank loan, where interest would represent a significant burden during the recovery.

What if the drought continues beyond 2026?

The Federal Council has already provided appropriations for 2027 and beyond. Forestry credit increases by CHF 17.5 million in 2027, and from 2028 DATEC will be able to request funds of the same amount each year as needed. In addition, by the end of October, the Government will evaluate further measures based on the evolution of the situation. In the autumn it will decide whether to launch other extraordinary interventions for agriculture and forests.

How do I contact my canton to access funding?

Each Swiss canton has a specific office (Office of Agriculture, Agriculture Division, or similar name) where you can apply for interest-free credit. Contacts are available on the official website of the cantonal administration. It is advisable to contact the office before submitting the application to request the procedural details, processing times and documentation required to prove the damage from the drought.

Canicola and drought: the Government wants more funds

Di Redazione Frontaliere Ticino · Published on 27 August 2026

Withered sunflower field due to extreme summer drought in Switzerland, July 2026

The Federal Council is asking for CHF 71.5 million to support forests and farmers affected by the record drought of 2026.

Context

In a nutshell

Government asks CHF 71.5 million for droughts and forests
CHF 17.5 million per year from 2027 for woodland adaptation
CHF 54 million in 2026 for cash-strapped farms
Record-low rainfall until mid-August 2026

Key facts

What: Extraordinary federal funding for drought and agriculture
When: Discussion on Wednesday Federal Council; evaluation by the end of October, autumn decision
Where: Switzerland (Canton Zurich, Vaud, other affected regions)
Who: Federal Council; Parliament; DATEC, DEFR, DFI, DDPS
Amount: CHF 17.5 million forest credit 2027+ + CHF 54 million agriculture 2026
Aid type: Interest-free receivables for liquidity
Sectors affected: Agriculture, forests, shipping, electricity

The Federal Council discussed on Wednesday the situation of heatwave and drought that is affecting Switzerland. The decision is clear: it calls on Parliament to allocate extraordinary funds to support farms and adapt forests to ongoing climate change.

The figures are significant. The executive calls for an increase of 17.5 million francs for forest credit in 2027. In addition, from 2028, the Federal Department of Environment, Transport, Energy and Communications (DETEC) will be able to request funds of the same amount every year. For agriculture, the means rise by 54 million francs in 2026, as a one-off support for companies in liquidity crisis caused

Operational details

What Concretely Changes

The announced financing represents a break from the usual ordinary federal budget cycle. Normally, forest credit and agricultural aid follow standard and predictable paths of annual programming. This time, the Federal Council recognizes that the liquidity crisis for farmers is immediate and cannot wait for ordinary timelines. An emergency situation requires emergency tools.

The mechanism is simple from an operational standpoint: those who benefit are farmers affected by drought and public and private forest owners. How? Through bank credits guaranteed by the Confederation, interest-free. When? The 54 million for agriculture is already available in 2026; the 17.5 million for forests comes into force from 2027, with the possibility of annual renewal from 2028 onwards.

This means that a farm that has seen its harvests collapse, with emergency irrigation costs or livestock management costs drastically increased due to drought, can access these funds to maintain operational liquidity until the next production cycle. These are not direct aid (non-repayable subsidies), but subsidized financing that must be repaid. The absence of interest reduces the overall cost of the liquidity crisis.

Implications for Affected Sectors

For agricultural enterprises, interest-free credit represents an essential injection of liquidity at a critical moment. The Confederation, through the cantons, supports agricultural enterprises to overcome the crisis without resorting to the ordinary credit market, where interest rates would be significantly higher and the availability of financing could be limited given the risk profile of the sector during periods of disaster.

For forests, the annual financing of 17.5 million (starting from 2027) allows cantons and owners to invest in concrete climate adaptation measures: emergency irrigation for young plants, selection and planting of drought-resistant forest species, prevention of wildfires through fuel reduction interventions. In Switzerland, forests are not purely private property: many belong to municipalities or cantons, and the public interest in keeping them healthy is evident from an economic and environmental perspective.

The subsequent expansion of annual appropriations (from 2028 the DATEC can request funds every year based on needs) suggests that the Government foresees a long-term situation, not an episodic one. The 2026 drought, with record-low precipitation until mid-August, may not be an isolated exception but a signal of structural climate change. Consult our tool to analyze the cost of living in Switzerland and understand how factors such as energy and agricultural prices affect your national budget.

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Key points

How to access funding

For farmers, the 54 million francs allocated in 2026 are available through the ordinary channel of applying for concessional credit with cantonal administrations. Each canton has a specific office (usually the Department of Agriculture) responsible for managing these extraordinary funds. The agricultural enterprise in question must demonstrate concrete damage from drought — significantly reduced harvests, additional irrigation costs, livestock losses — and present a realistic financial repayment plan in order to access the credit.

The credit is interest-free, which means the enterprise repays only the principal borrowed, without any additional financial costs. This drastically reduces the cost of the crisis compared to an ordinary bank loan, where interest could absorb significant resources during the recovery period. The administrative procedure is streamlined compared to normal credit evaluation standards: there are no lengthy credit assessments, but rather a verification of the drought-related crisis situation.

For forest owners, the process is similar: the cantons make available 17.5 million annually (starting from 2027) through offices competent in forest management. The resources are intended for concrete adaptation projects — land reclamation, reforestation with resilient species, fire protection — which must be documented and authorized by the cantons before disbursement.

What happens by October and autumn

The Government has set precise deadlines for following up on the situation. By the end of October, the federal departments DATEC, DEFR, DFI, and DDPS will complete a new in-depth analysis of the drought, energy, and agriculture situation. If the drought continues or other related crises emerge (for example, risks to hydroelectric energy production due to critical water levels in dams, river navigation problems, further agricultural losses), the Government could propose additional support measures.

In autumn (September–November 2026), the Federal Council will make a final decision on any new interventions that go beyond the already announced package of 71.5 million. This means that those awaiting a definitive response from the Government on additional measures should know that the most important decisions will come in the coming months of autumn 2026. In the meantime, cantonal administrations will be able to begin collecting applications and processing agricultural credit requests based on the 54 million allocated for 2026.

Next operational steps

Those working in agriculture or owning forests in Switzerland should stay in contact with the competent cantonal office (Department of Agriculture or Forest) to understand how to access the funds and what the specific procedures are. The allocated amounts, application timelines, and conditions vary from canton to canton, although federal financing is coordinated at the central level by DATEC and departmental partners.

If you work in the agricultural sector or in areas related to climate resilience, consult Swiss job listings for opportunities at companies investing in adaptation and sustainability. For an overview of the national economic situation and the effects of drought on inflation, energy costs, and cost of living, use the Swiss cost of living calculator for a detailed overview by canton.

Source: rsi.ch

Frequently Asked Questions

When does funding for agriculture take effect?: The 54 million francs allocated by the Government for agricultural aid are available in 2026. This is a one-off (non-recurring) measure to address the liquidity crisis caused by the record summer drought. Affected farmers can claim interest-free credits from the competent cantonal administrations (Office of Agriculture) of their canton of residence or where the holding is located.
Who can access farm loans?: Drought-stricken and cash-strapped farms can claim interest-free loans from their home cantons. It is necessary to demonstrate the concrete damage from the drought (reduced harvests, additional costs) and submit a financial repayment plan. Perfect creditworthiness is not required: the priority is the documentation of the crisis situation related to the 2026 summer drought and the ability to repay the capital in the agreed time.
Does the interest-free credit haveto be repaid?: Yes. The 54 million is subsidized credits, not grants or non-repayable direct aid. The company receives a zero-interest rate loan, but must repay the principal according to a plan agreed with the canton. This drastically lowers the cost of liquidity compared to an ordinary bank loan, where interest would represent a significant burden during the recovery.
What if the drought continues beyond 2026?: The Federal Council has already provided appropriations for 2027 and beyond. Forestry credit increases by CHF 17.5 million in 2027, and from 2028 DATEC will be able to request funds of the same amount each year as needed. In addition, by the end of October, the Government will evaluate further measures based on the evolution of the situation. In the autumn it will decide whether to launch other extraordinary interventions for agriculture and forests.
How do I contact my canton to access funding?: Each Swiss canton has a specific office (Office of Agriculture, Agriculture Division, or similar name) where you can apply for interest-free credit. Contacts are available on the official website of the cantonal administration. It is advisable to contact the office before submitting the application to request the procedural details, processing times and documentation required to prove the damage from the drought.