Brussels, 02/09/2013 (Agence Europe) - The European Commission is soon to propose to allow all member states to pay an advance of 50% on the 2013 direct payments on 16 October, when the 2014 financial year of the common agriculture policy (CAP) begins, instead of 1 December.
At the request of a number of countries, this early payment was made possible in 2012, when farmers were facing cash-flow problems due to adverse weather conditions, amongst other things. The Commission is expected to come to its official decision at the meeting of the management committee on 11 September.
Against the current economic backdrop, more member states are expected to renew the request this year, given the increase in the cost of animal feed and shortage of fodder.
In parallel, Commission has still to make a decision on the reduction rate which may be applied to direct aid for 2013 in order to comply with the upper limit on agricultural expenditure for the 2014 financial year. This cut will ultimately be based on the most recent revised estimates to be submitted by the Commission in mid-October. (LC/transl.fl)