On Friday 20 May, the European Commission adopted a proposal for support from the European Agricultural Fund for Rural Development (EAFRD) to allow Member States to pay a one-off lump sum to farmers and agri-food businesses affected by significant increases in input costs.
These price increases (energy, fertiliser, feed), which are the result of the effects of the war in Ukraine started by Russia, are affecting the agricultural sector and rural communities, leading to liquidity and cash flow problems for farmers and small rural businesses involved in processing, marketing or developing agricultural products.
By directly addressing these cash flow problems and helping them stay afloat, the support will help address market disruptions and thus contribute to global food security, the Commission says.
Janusz Wojciechowski, European Commissioner for Agriculture, believes that the survival of some farmers is at stake. With this measure, “we support them so they can keep producing the food the world needs, care for their land and provide for their families”.
Once adopted by the co-legislators, the measure (https://aeur.eu/f/1r6 ) will allow Member States to decide to use up to 5% of their EAFRD budget for the period 2021-2022 for direct income support to farmers and SMEs active in the processing, marketing or development of agricultural products.
The budget is estimated at €1.4 billion for the EU. Member States are required to target this support to those beneficiaries most affected by the current crisis which promote the circular economy, nutrient management, the effective use of resources or environmentally and climate friendly production methods. The selected farmers and SMEs could receive up to €15,000 and €100,000 respectively. Payments should be made by 15 October 2023 at the latest. To make use of this exceptional measure, Member States will have to submit an amendment to their rural development programme(s).
This proposal follows the €500 million support package for EU farmers.
Market surveillance. The Commission has also published a decision (https://aeur.eu/f/1r9 ) to collect monthly data on the levels of stocks of cereals, oilseeds and rice in the EU (and certified seed of these products) held by the producers, wholesalers and operators concerned.
Finally, the Commission has developed a specific dashboard with updated and detailed statistics on the prices, production and trade of milling wheat, maize, barley, rapeseed, sunflower oil and soya at an EU and global level (https://aeur.eu/f/1ra ). (Original version in French by Lionel Changeur)