German farming in 'massive' crisis after drought: minister

German farming has been plunged into a "massive nationwide crisis" by drought this summer, the country's agriculture minister said on Wednesday, announcing fresh emergency loans for producers suffering poor harvests.

Presenting a report, the ministry said it expected a grain harvest of around 37 million tonnes, down more than two percent from the average of the past five years.

The drought hit maize and sugar beet crops particularly hard, with output of both expected to fall by 16 percent compared with that same average.

Heat and drought battered much of Europe this summer, fuelling a surge in mortality and wildfires and devastating many crops.

"This is not only about tonnes or hectares," but also "the condition our farms are in today", minister Alois Rainer said, citing high production costs, exacerbated by current fuel prices.

To prevent a "structural breakdown", the conservative minister announced a 300-million-euro increase in a public lending programme for farmers, bringing the total to 500 million euros ($580 million).

Rainer added that he was also negotiating with the finance ministry on a separate support scheme for farmers.

"It is nothing less than Germany's food security that is at stake," he said.