Farm Ireland
Independent.ie

Wednesday 20 June 2018

EU angers France and others with proposal to slash farmers' subsidies

A farmer drives his tractor in his field as he plants potatoes in Estourmel near Cambrai, France April 26, 2018. REUTERS/Pascal Rossignol
A farmer drives his tractor in his field as he plants potatoes in Estourmel near Cambrai, France April 26, 2018. REUTERS/Pascal Rossignol

Francesco Guarascio

The European Commission proposed on Friday 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 around €232 billion 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 2pc of their direct agriculture funds from the EU for young farmers, but acknowledged that this could encourage larger farms to simply split up.

“Nobody stops farmers from splitting the farms,” the EU agriculture commissioner Phil Hogan told a news conference.

The agriculture ministers of France, Spain, Portugal, Ireland, Finland and Greece immediately issued a joint statement saying they opposed the proposed cuts - which must be approved by all 27 EU members - and called for maintaining 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 they received between 2014 and 2020.

Direct payments to farmers would still form the bulk of EU agriculture spending, or one fifth of all EU expenditure in the planned €1.1-trillion long-term budget.

Spanish farmers, the second top beneficiaries of EU money, would see their funding drop to €29.7 billion, from €31.7 billions. Direct payments to Italian farmers would decrease to €22.1 billion from €24 billion.

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As part of a wider policy to divert some EU money to new sectors, like research and security, most EU countries would see a drop in direct aid to their farmers, except the Baltic countries and other smaller eastern EU states who would see their funding increase.

Reuters