Brussels, 22/09/2011 (Agence Europe) - At the Agriculture Council on Tuesday 20 September, a group of seven countries - Bulgaria, Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia - backed by the Baltic States - Latvia, Lithuania and Estonia - expressed concern at the reduction in the level of complementary national direct payments (CNDPs), which could be paid to farmers in 2012 (budget year 2013). The European Commission is trying to find a solution to the problem.
Under Article 132 of Regulation (EC) No 73/2009, the level of direct payments in the new member states, including CNDPs, should not exceed the level of direct payments in the old member states as reduced by modulation (reduction of direct aid then transfer of monies to rural development schemes). In 2012, direct payments in the old member states will be subject to a 10% modulation, and direct payments of more than €300,000 will be subject to an additional 4% reduction. At the same time, farmers in the new member states concerned - all the new member states, excluding Cyprus, Romania and Bulgaria - are set to achieve 90% of the phasing-in of direct payments, thus equalling the level of direct payments in the old member states (100% less 10% modulation).
The Commission proposed a method for the calculation of CNDPs in 2012: if the global amount of all EU direct payments and CNDPs for which a farmer in the new member states concerned is eligible is over €5,000, then the level of CNDPs paid above the ceiling of €5,000 will be limited to €500. The new member states concerned challenged this method, pointing out that it would lead to a reduction in the overall direct support received by some farmers considerably exceeding the rate of modulation applicable in 2012.
From 2013, no CNDPs will be granted since the level of direct payments will have reached 100%. (LC/transl.rt)