Archive image of a harvester in the Extremaduran countryside. /
The European Commission offers Member States the possibility of granting a single payment to farmers and agri-food companies most affected by the increase in the prices of inputs under the European Agricultural Fund for Rural Development
The European Commission offers Member States the possibility of granting a single payment to farmers and agri-food companies most affected by the increase in the prices of inputs charged to the European Agricultural Fund for Rural Development (EAFRD), as an exceptional measure to guarantee the food security despite market disturbances.
Farmers will be eligible for aid of up to 15,000 euros and SMEs to a payment of up to 100,000 euros, and in any case disbursed before October 15, 2023, according to the proposal of the Community Executive still pending negotiation between the Council and European Parliament.
Last Friday, Brussels explained its proposal as a response to the increase in prices, especially those of energy, fertilizers and feed, which harm the agricultural sector and rural communities due to the lack of liquidity and cash flow of producers and small companies in all the links of the chain, collects Europa Press.
If the measure receives the necessary approval of the Twenty-seven and the European Parliament to be effective, Brussels estimates that it will allow Member States to use up to 5% of their EAFRD budget for 2021-2022 in direct support for the income of the farmers and SMEs active in the processing, marketing or development of agricultural products.
The aid should be directed to those most affected by the current crisis and who are dedicated to the circular economy, nutrient management, the efficient use of resources or production methods that respect the environment and the climate.
In order to make use of this exceptional possibility, the Member States will have to present an amendment to their rural development programs introducing this new measure.
According to the agrarian organization UPA, the Commission has assured that the increase in prices, in particular for energy, fertilizers and feed, is disrupting the agricultural sector and rural communities, “causing liquidity and cash flow problems for farmers and small rural businesses engaged in the processing, marketing or development of agricultural products’.
According to this organization, the Member States must direct this aid to those most affected by the current crisis and that participate “in the circular economy, nutrient management, the efficient use of resources or production methods that are respectful of the environment and the climate’. sunflower oil and soybeans at EU and global level.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.