Report calls for revision of European agricultural subsidies
European agricultural subsidies should be used "much more effectively", with income support aimed at "the farmers who need it most". This was stated on Wednesday in a report on the future of European agriculture that a broad group of experts drew up at the request of the European Commission.
In response to ongoing farmers' protests, European Commission President Ursula von der Leyen initiated a “strategic dialogue” on the agricultural sector earlier this year. The dialogue was led by German professor Peter Strohschneider and included 29 experts from the agri-food sector, environmental organisations, consumer associations and other stakeholders, all working together to reach a consensus.
The group's final report calls for a thorough revision of the Common Agricultural Policy (CAP). With a total budget of 387 billion euros over seven years, including 270 billion euros for direct income support, the CAP remains one of the largest expenditures in the European budget.
Focus on income
While the report does not address specific spending ceilings or amounts, it advocates for a restructuring of the budget. Rather than basing payments on farm size, the report recommends "income support for certain active farmers in a much more targeted way."
"This specific support should avoid farm closures and help ensure that farmers have a decent income, targeting those most in need, in particular small and mixed farms, young farmers, newcomers and areas with natural constraints," the report states.
To support the transition to sustainable agriculture in the face of climate change, the report also suggests the creation of a temporary off-budget fund to assist farmers. Additionally, it calls on the Commission to place greater emphasis on the "strategic relevance" of the agricultural sector in trade negotiations.
Von der Leyen's second term
These recommendations are expected to influence the new agricultural policy vision that von der Leyen plans to present within 100 days of starting her second term. She has already outlined key objectives, including ensuring "a fair income for farmers," strengthening their position in the value chain, creating "an efficient system of rewards and incentives" for those who protect nature and the environment and reducing administrative burdens.
In response to pressure from farmers' protests, the EU relaxed several environmental conditions within the CAP this spring, including crop rotation requirements and mandatory set-aside. Smaller farms were also exempted from certain checks and fines. During the report's presentation on Wednesday, von der Leyen highlighted the need for "a new approach" with "more trust" in farmers and less bureaucracy.
Ursula von der Leyen receives the final report of the Strategic Dialogue on the Future of EU Agriculture from Peter Strohschneider on 4 September, 2024. © WIKTOR DABKOWSKI/ZUMA PRESS WIRE
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