EU farmers to get less aid

– The European Commission proposed yesterday cutting direct subsidies to farmers while increasing the share of funds going to smaller farms, attracting criticism from France and other countries that benefit most from EU agriculture aid.

Under plans for the EU’s budget for 2021-2027, farmers would receive about €232 billion (R3.4 trillion) in direct support, a drop of more than €30 billion from the current seven-year budget.

The commission proposed giving more money to small farms and recommended member states set aside at least 2% of their direct agriculture funds from the EU for young farmers, but acknowledged it could encourage larger farms to split up.

The agriculture ministers of France, Spain, Portugal, Ireland, Finland and Greece issued a joint statement opposing the proposed cuts, which must be approved by all 27 EU members, and calling to keep current spending levels.

French farmers would still receive the highest share of EU direct payments at more than €44 billion in the 2021-2027 period, but down from the €47.7 billion between 2014 and 2020. Spanish farmers, the second top beneficiaries, would see their funding drop to €29.7 billion, from 31.7 billion. Italian farmers would get €22.1 billion down from €24 billion.

In a policy to divert EU money to new sectors, like research and security, most EU countries’ aid to farmers would drop. – Reuters

Brussels