EU strikes deal on huge farm subsidies
EU negotiators struck a deal on reforms to the bloc's huge farming subsidy programme on Friday, introducing new measures aimed at protecting small farms and curbing agriculture's environmental impact.
The offer ends a near three-year struggle over the continuing future of the EU Common Agricultural Policy, that will suck up around a third of the EU's 2021-2027 budget, spending 387 billion euros on payments to farmers and support for rural development.
Representatives from EU member states and European Parliament clinched the agreement, which aims to shift money from intensive farming practices to protecting nature, and rein in the 10 per cent of EU greenhouse gases emitted by agriculture. The new CAP rules apply from 2023 and don't cover Britain after its exit from the EU.
"In future, agriculture will not simply ensure that farmers have a viable business, that we have a good price for consumers, but it will also donate to a greener Europe," said Portuguese agriculture minister Maria do Ceu Antunes, who represented EU countries in the talks.
"Small family-run farms are certain to get support," said Norbert Lins, parliament's chief negotiator, adding that the offer gives farmers incentives to safeguard the environment.
Campaigners and some lawmakers said the deal didn't align farming with EU goals to fight climate change, warning that lots of measures to motivate farmers to shift to green methods were weak or voluntary. The offer would require countries to invest 20 % of payments to farmers from 2023-2024, rising to 25 % of payments between 2025-2027, on "eco-schemes" that protect the surroundings.
Examples could include restoring wetlands to soak up CO2, or organic and natural farming, although the guidelines didn't define what would count as an eco-scheme. Any funds below those limits that aren't spent on eco-schemes must be allocated to green measures in the areas instead.
The guidelines require EU countries to redistribute at least 10 % of CAP funds to smaller farms. Countries could dodge this requirement if they use other solutions to distribute the funds fairly.
Countries must hand 3 % of subsidies to young farmers, and really should use criteria like income tests to define who's an "active farmer" and may receive subsidies - another attempt to stop large businesses sucking up money.
All farmers' payments will be linked with complying with environmental rules, such as setting aside 3 % of arable land for areas where nature can thrive.
The offer also creates a 450 million euro crisis fund in the event agricultural markets are disrupted by a crisis like a pandemic.
EU auditors this week said the existing CAP had didn't reduce emissions. EU agriculture emissions, half which come from livestock, have not decreased since 2010.
European Parliament and EU member states must both formally approve the agreement.
