EU countries can offer extra support to farmers and small food businesses if it is up to the European Commission. This was announced by European Commissioner Wojciechowski at an extraordinary additional meeting of the Agriculture Committee of the European Parliament.
EU countries may pay agricultural businesses a one-time amount of 5,000 euros from the EU rural development fund. For small and medium-sized food companies, this concerns 50,000 euros. It had already become clear in budget negotiations that there were still financial reserves in that rural fund, but MEPs, Commissioner Wojciechowski and the European Commission disagreed on what should be done with those funds.
The measure is intended to alleviate the pressure from the corona crisis, which many farming businesses are suffering from. EU governments and the European Parliament still need to approve it. This could happen as soon as later this week, at an extraordinary meeting of the Agriculture Committee with Vice-President Frans Timmermans. The Agriculture Committee wants to hear from him how he – as part of his Green Deal – wants to organize the farm-to-fork (F2F) agricultural reforms. And related to that: how much money will be available later for an adapted or non-adapted common agricultural policy.
The European Commission had already introduced temporary support measures for, among others, ornamental horticulture, dairy, meat, vegetables and fruit. For example, it became possible to store butter, cheese, skimmed milk powder and beef, sheep, and goat meat for up to six months in refrigeration warehouses. There is also already a scheme to buy up surplus potato stocks.
Two weeks ago, the Parliament’s Agriculture Committee called for more targeted action, including market measures such as private storage. MEPs also demanded the deployment of the planned corona mega recovery fund to help those agricultural sectors that are struggling with those billions.
The now approved redistribution of unused agricultural funding is part of measures to contain the effects of the crisis in rural areas. A simpler and more flexible rural development fund would enable loans and guarantees on favorable terms to cover operating costs up to €200,000.
In addition, the dairy sector is given permission to make agreements about the volume of production, while a buy-back scheme will be introduced for flowers and plants. The lower market supply of these products is aimed at stabilizing future production and prices. EU Agriculture Commissioner Janusz Wojciechowski is confident that the measures will provide “tangible support and quickly some stability” to the sector.