Brussels, 26/07/2012 (Agence Europe) - The EU's Direct Payments Management Committee gave its backing on Wednesday 25 July to a proposal that member states be allowed by the European Commission to permit Member States to advance 50% of ) common agricultural policy (CAP) direct payments (aid applications for 2012) earlier than usual. The point of this measure, which for the moment concerns ten countries - France, Spain, Italy, Portugal, Greece, Latvia, Lithuania, Hungary, Romania and Ireland - is to help farmers address liquidity problems due to exceptional conditions caused by the ongoing financial crisis and unfavourable climatic conditions.
The derogation will allow advances to be paid from 16 October (that is, the first day of the 2013 budget year) rather than from the usual date of 1 December. The countries will have to conduct the necessary checks in order to be able to take advantage of the derogation. For the few member states that maintain “coupled” payments, which link aid to the level of production, this derogation will also allow 80% of the beef and veal payments to be made early.
The estimated maximum amount of advances that could be paid between the 16 October and 1 December 2012 is some €21.3 billion.
Earthquake in northern Italy
The Committee has provided an exceptional derogation for farmers in northern Italy (Emilia Romagna, Lombardia and Veneto regions) whose crops were destroyed by the earthquake at the end of May. The special measure will permit Italy to advance 50% of the direct payments to farmers in the 113 communes affected by the earthquake and to the milk producers who deliver their milk on a regular basis to the storage centres situated in those communes - up to a maximum of €40 million for advances paid before 16 October. (LC/transl.rt)