EU offers lump sum payment to farmers due to rising costs

The European Commission has offered farmers a lump sum payment to compensate for the increased costs they have experienced since the start of the war in Ukraine.

The Commission says rising prices of energy, fertilizer and feed are hurting the agricultural sector and rural communities.

The European Commission’s proposal would allow farmers and agribusinesses to receive direct cash injections.

Farmers could receive up to 15,000 euros, and small and medium-sized enterprises could receive a benefit of 100,000 euros to offset rising input costs.

EU Agriculture Commissioner Januz Wojciechowski said farmers continue to produce food under difficult conditions, and for some, survival is at stake.

The proposal must receive approval from the Council of Ministers and Parliament, and the commission proposes payment by next October.

The proposal is to allow member states to make a lump sum payment from the European Agricultural Fund for Rural Development.

Member states would be allowed access to 5 percent of their EAFRD budget for payments, to be directed to those most affected by the current crisis and engaged in efficient and sustainable agriculture.

Payments could be made by October 2023.

Responding to the proposed scheme, Agriculture Secretary Charlie McConalogue’s spokesman said no proposals have yet been made.

But the minister and the government will continue to explore all possible options to support farm families in these challenging times.

Calls to support farmers in NI.

The Ulster Farmers Union (UFU) said the war in Ukraine has highlighted the fragility of food security at home and abroad.

The union said the U.K. would “slide toward disaster” in preserving the food supply if political priorities did not change.

UFU President David Brown said: “Farmers are seriously struggling with unprecedented inflationary costs. Input prices for diesel, electricity, steel and concrete have doubled in the last year. Fertilizer, along with agrochemicals, have tripled in price in the same time period. .

“If the government as well as retailers don’t step in to relieve the pressure, our food security will suffer greatly, affecting the availability of affordable, locally produced food for consumers,” he added.

“Governments in the EU are stepping up and supporting their farmers and producers, we need the UK government to do the same,” he said.

“This summer in particular will be a critical period in the production calendar for both livestock and dairy farms planning for feed in the fall and for crops in 2023. for the next 18 months.”

VOLVO