France Pledges $150 Million to Uproot 32,000 Hectares of Vines Amid Wine Industry Crisis

The French government announced on Monday that it will provide an additional €130 million, or about $150 million, to support the country’s wine industry by funding the uprooting of thousands of hectares of vines. The measure is intended to address a persistent oversupply of wine in France, which has led to falling prices and financial difficulties for many producers. The Ministry of Agriculture said it will also ask the European Union to contribute further aid.

The new funding comes as French winemakers face a combination of challenges. Wine consumption in France has been declining for years, especially among younger people and for red wines. At the same time, climate change has brought unpredictable weather, including heatwaves and droughts, which have affected harvests and reduced yields in several regions. Geopolitical tensions, such as trade disputes and the war in Ukraine, have also increased production costs and limited exports.

Agriculture Minister Annie Genevard announced the plan at the Sitevi agricultural fair in Montpellier, which runs from November 25 to 27. She described the support as a “massive” effort to help struggling farms in the most vulnerable regions. The government will pay winegrowers €4,000 per hectare for each hectare of vines they permanently remove. According to industry estimates, this could cover up to 32,000 hectares—less than the 35,000 hectares that some growers have indicated they are willing to uproot.

France has already implemented similar programs in recent years. In 2023, €57 million was allocated for uprooting 8,500 hectares of vines in Bordeaux. A national program last year provided €120 million for removing about 27,500 hectares across France. Despite these efforts, industry groups say more support is needed. The Association Générale de la Production Viticole (AGPV) recently called for a €200 million program funded by both national and EU sources.

The ministry’s plan also includes other measures aimed at easing financial pressure on wine producers. These include extending state-guaranteed loans through 2026 and providing relief on social security contributions. An initial tranche of €5 million has already been released this month to help cover these costs, with another €10 million planned for next year.

In addition to vine removal, the government is asking the European Commission to activate its crisis reserve fund to support “crisis distillation.” This process allows surplus wine that cannot be sold to be converted into industrial alcohol or biofuels. France spent €200 million on crisis distillation last year.

The oversupply problem is not unique to France. Other major wine-producing countries in Europe are facing similar issues as consumption patterns shift and economic pressures mount. Earlier this year, Germany called on the EU to expand its own vine removal programs.

According to a recent survey by FranceAgriMer, a public agency that supports agriculture and fisheries, about 20 percent of French wine producers are considering closing their businesses due to ongoing difficulties. Many others are looking at ways to reduce costs or change their production methods.

Minister Genevard said that while the new funding falls short of what some industry groups requested, it demonstrates the government’s commitment to supporting French winemakers through a period of structural change. She emphasized that targeted aid is needed for the most vulnerable farms and that adapting support programs to local realities will be crucial.

The French wine sector remains one of the country’s most important agricultural industries, but it is undergoing significant transformation as it adapts to changing consumer habits and environmental conditions. The government’s latest intervention aims not only to address immediate oversupply but also to help ensure a sustainable future for wine producers across France.