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Agriculture Minister Michel Barnier announced a rescue plan last week that will go some way to appeasing farmers, who are being affected by rising costs and falling product prices, with sheep farmers expected to benefit most from the 250 million euro initiative.

Barnier told Parliament "This plan will provide exceptional support for the sheep sector which is in deep distress and help relieve farmers' cash problems, mainly for breeders, through exemptions or reductions of fiscal, social or bank charges."

Recent protests around the region have highlighted the plight of farmers, with hundreds taking to the streets of Parthenay and Poitiers earlier this month, and farmers from the region joining forces with those in Limousin to protest in Limoges during the summer.

The farming sector has been squeezed by rising input costs, for things such as fertilisers, and increased pressure from retailers to sell at lower prices, after legislation this summer changed the way prices are negotiated in France.

"French farmers' incomes have shed between 7 and 15 percent this year, depending on the sector, and this is the second consecutive drop," Barnier said.

Up to 50 million euros has been set aside for sheep breeders, particularly hit by a surge in animal feed prices, of which half will be paid by the European Union, while tax relief measures will cost the 2009 budget another 75 million euros.

The tax reduction on fuel for farmers (TIPP) will be extended to the second half of 2008, and there will be support for energy-saving investments amounting to 75 million euros, the ministry said in a statement.  Other measures will include tax exemptions for young farmers and the launch of a price-monitoring watchdog.

In total, France would finance 179 million euros and Europe 25 million, leaving 46 million euros to banks and mutual insurance companies, notably through preferential loans, the ministry said.  Breeders from around France protested in Paris on Thursday, with more than 100 sheep being led from the Eiffel tower to the farm ministry.