The European Commission has announced plans to provide additional EU funding to aid EU farmers facing challenges due to adverse weather conditions, high input costs, and various market and trade issues. This includes a proposed €9.5 million earmarked for Irish farmers as part of the wider effort to support the agricultural sector across the European Union.
In total, the Commission suggests mobilizing €330 million for 22 Member States from the CAP (Common Agricultural Policy) budget to address these concerns. This initiative follows the approval by Member States of a €100 million support package for farmers in Bulgaria, Hungary, Poland, Romania, and Slovakia, which was announced on 3 May. This package aims to assist farmers in these countries with logistical challenges and market disruptions partly caused by significant imports of certain agricultural products from Ukraine.
The €330 million support package is designed to help farmers in countries including Belgium, Czechia, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Austria, Portugal, Slovenia, Finland, and Sweden. These funds are intended to compensate for economic losses resulting from market disturbances, the impact of high input costs, falling prices of agricultural products, and damage from recent climatic events, especially severe in the Iberian Peninsula and Italy.
Additionally, the aid could support measures such as the distillation of wine to prevent further market declines. Member States can supplement this EU funding with up to 200% from national funds, enhancing the level of support available to farmers.
The €100 million support package specifically targets farmers in Bulgaria, Hungary, Poland, Romania, and Slovakia, allocating funds to each country to mitigate the effects of logistical bottlenecks and other challenges stemming from the influx of Ukrainian agricultural products. This includes exceptional and temporary import measures on certain Ukrainian products, set to be phased out by 15 September 2023.
Both support packages are scheduled for disbursement by 31 December 2023, with Member States required to report to the Commission on the implementation details, including criteria for aid calculation, impact evaluation, and measures to prevent market distortion and overcompensation.
Furthermore, the Commission proposes enabling higher advance payments from CAP funds to improve farmers' cash flow. This includes up to 70% of direct payments and 85% of rural development payments being available from mid-October. Member States also have the option to adjust their CAP Strategic Plans to redirect funds towards recovery investments following adverse climatic events, with certain flexibilities also provided in the sectoral programmes for wine and fruits and vegetables to better respond to current market conditions.
