EU to grant €330 million fund for ag sector

EU to grant €330 million fund for ag sector

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EU to grant €330 million fund for ag sector

The European Commission is proposing to mobilize additional funding for farmers impacted by adverse conditions. The new support package will consist of €330 million (about $359 million) to be allocated among 22 member states.

Farmers from Belgium, Czechia, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Austria, Portugal, Slovenia, Finland and Sweden will benefit from this new fund.

The measure will be voted at the next committee meeting for the common organization of agricultural markets.

“Farmers are among the first to be impacted by the climate, economic and geopolitical crises. Despite the liquidity issues and difficulties faced, particularly acute in certain sectors and Member States, EU agricultural producers keep working every day to provide safe and quality food products,” says Janusz Wojciechowski, commissioner for agriculture, in a release. 

"They deserve our support and our recognition. Today, the European Commission is again stepping up its financial aid to support EU farmers from all around the EU. National funds can also complement this support”, he indicates.

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Additionally, another €100 million (US$108 million) support package was approved for farmers in Bulgaria, Hungary, Poland, Romania and Slovakia.

Climatic events, high input costs and diverse market and trade related issues have plagued the sector in the last few years.

Rapidly decreasing agricultural product prices over the last year against the backdrop of inflation is causing liquidity problems for farmers, notably in the cereals and oilseeds, dairy and other livestock, wine or fruit and vegetable sectors.

The Iberian Peninsula has been suffering from drought while certain Italian regions were affected by exceptionally severe floods. 

The European Commission argues that these extreme meteorological events are causing damage to local agricultural production and infrastructure, making the additional funds crucial for the sector.

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