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Agriculture ministers accept major overhaul of agri-subsidies

Iede de VriesIede de Vries
The agriculture ministers of the 27 EU countries have agreed on a sweeping reform of the European agricultural policy. The separate agricultural funds will disappear and the subsidies will be distributed differently. The size of the proposed cuts (around a quarter) will be decided by the end of November.
Agriculture ministers agree on major reform of European agricultural policy after 2027.

On Monday in Luxembourg, the ministers unanimously agreed on their joint negotiating position for the agricultural policy from 2028 to 2034. In doing so, they largely accept the new structure proposed by the European Commission. The financial arrangements have, for now, been left out of the agreement.

The current separate funding of income support for farmers and subsidies for rural development will be merged into a much larger European fund. From this fund, regional development, fisheries, and other policy areas will also be financed going forward. Each EU country must draw up a national plan for the allocation of the money.

More per country

The individual EU countries will get considerably more freedom to shape their own agricultural policies. Recommendations from the European Commission about national support programs should not be binding. The agriculture ministers want to simplify European rules and better tailor subsidies to the circumstances of individual countries.

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EU Agriculture Commissioner Christophe Hansen welcomed the agreement but simultaneously warned against too much national freedom and lower ambitions. According to him, the common features of agricultural policy must be preserved. 

A quarter less

The European Commission has proposed about 300 billion euros for agricultural support, compared to 387 billion euros in the current period. That is 87 billion euros (=22%) less. By the end of November, an additional EU summit on the multiannual budget must decide how much money will ultimately be available for agriculture.

Future income support should primarily go to farmers who actually work the land. The EU countries may decide for themselves who is considered an active farmer. National circumstances and the position of retired farmers are also taken into account. The distribution of subsidies per hectare is also being phased out.

Young farmers and smaller farms will receive special attention. All EU countries must provide extra support to young people who want to start a farm, including through higher payments, training, and guidance. Decisions on maximum subsidies per farm and the gradual reduction of high payments will be made later.

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Rural fund

The separate funding of rural development will disappear. Germany has requested guarantees for its continuation and regrets the removal. Environmental requirements remain, but the EU countries will get more control over their implementation. Nature organizations fear this will lead to less protection for nature and biodiversity.

The ministers also want better insurance and emergency aid for farmers affected by extreme weather, diseases, or other crises. The agreement is not yet final legislation. The European Parliament still has to form its own position, after which joint negotiations between the EU ministers and the European Parliament can begin.

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This article was written and published by Iede de Vries. The translation was generated automatically from the original Dutch version.

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