BRUSSELS: European officials meeting in Luxembourg have struck a deal to cut subsidies for big business farms and boost young farmers as part of a major overhaul of the EU’s much criticised Common Agricultural Policy (CAP) due to start next year.
“On a lot of the big issues, we have agreement in principle,” Irish Agriculture Minister Simon Coveney, who is chairing the discussions as holder of the EU presidency, said yesterday.
Coveney voiced hope that a three-way meeting of the European Commission, Council and Parliament in Brussels on Wednesday could formalise the preliminary agreement.
Coveney said that a “stumbling block” over how to divide subsidies at the regional and national levels had been overcome, although he cautioned: “This deal is not done.”
Under the current rules, 80 percent of CAP payments go to the top 20 percent of intensive farm businesses since several countries still link the subsidies to production levels.
Under the new proposal, member states would have to ensure that by 2019 each farmer receive at least 60 percent of the average national or regional subsidy per hectare.
The reduction in subsidies that this would entail for intensive farming enterprises would be limited at 30 percent.
Explaining the limit, Coveney said the reductions should not be done “to such an extent that they would result in massive losses for productive farmers that have high payments.”
He said the average reduction would only be between 11 and 12 percent for farmers who lose out, while farmers who benefit from the reform would get on average an extra 35 percent. “There will be more gainers than losers,” he said.
EU negotiators have also agreed on boosting subsidies for young farmers and obliging member states to allocate 30 percent of subsidies for farms that use eco-friendly farming methods.
But many issues are still outstanding, including sugar quotas and an upper limit on subsidies given out by the CAP.
AFP
