In future, EU farm subsidies should be calculated on the basis of farmers’ incomes rather than the number of hectares they own. This proposal, one of the most far-reaching recommendations in a recent report, would drastically change the financing of agriculture in the EU.
The report was presented to European Commission President Ursula von der Leyen last week and is expected to play a crucial role in reforms of the EU's Common Agricultural Policy (CAP) later this year.
Currently, around 80% of European farm subsidies goes to only 20% of the largest agricultural companies, while smaller and medium-sized farms, which represent a large part of the sector, often have to make do with less.
The working group of European agricultural experts proposes to tackle this inequality by targeting subsidies to farmers' incomes, so that support reaches those who need it most, mainly small and medium-sized farms.
Regardless of whether agricultural giants Ukraine and Moldova will soon be admitted as members of the EU, including their access to the free market, the current proposals mean that current CAP funding will largely disappear anyway.
The working group also recommends decoupling environmental payments in the agricultural sector from income support. Environmentally friendly agricultural practices should be rewarded through separate payments, which would not be at the expense of income support for farmers who do not participate.
The working group also re-imposes the Nature Restoration Act and the Soil Act on the EU meeting tables. The costs of these should not be paid from CAP agricultural subsidies, but from a (new) separate fund.
There are also calls for tailored emission targets for different agricultural sectors. These could differ from country to country, leading to an increasingly less common EU policy. In addition, areas with a high concentration of livestock, such as the Netherlands and Catalonia, could be encouraged to voluntarily reduce their livestock numbers.
The report calls for less red tape for farmers, allowing them to focus on their business and not on filling out forms. There should also be more focus on supporting young farmers who want to take over their parents’ farms, and encouraging the consumption of plant-based foods over meat and dairy.