The EU Commission is proposing to allocate €56 million to compensate farmers who have been impacted by increased imports of grain from Ukraine.
European Commissioner for Agriculture Janusz Wojciechowski told this week’s meeting of the EU Council that the proposed funding would come from the agricultural reserve.
The funding will aim to limit the impact of market imbalances on planting decisions of farmers.
Farmers
Farmers in countries bordering Ukraine have been expressing concerns about effects of the increased imports of Ukrainian cereals and oilseeds on local markets.
Following analysis of the situation by the EU Commission, it proposed to allocate €29.5 million to Poland, €16.75 to Bulgaria and €10.05 million to Romania.
The three countries can match this EU support up to 100% with national funds which would amount to a total financial aid of €112.6 million for affected farmers.
The financial aid would be allocated to the three member states which will then distribute it to farmers as soon as possible.
It is expected that farmers in the three countries will receive payments by the end of September.
Poland, Romania and Bulgaria will also have to inform the commission how the funds were distributed and how they helped farmers.
The commission’s draft measure is currently being discussed with member states with a vote due to take place on March 30.
Ukraine
Meanwhile, the United Nations (UN) confirmed on Saturday (March 18) that the Black Sea Grain Initiative allowing Ukraine to export grain and agricultural produce has been extended.
25 million metric tonnes of grain and foodstuffs have been shipped to 45 countries since the initiative began.
The agreement, brokered by the UN and Turkey, had been due to expire on March 19.
The UN statement did not specify how long the deal, which has until now operated on a 120-day cycle, would be extended for.
Russia said that it was willing to extend the measure, but only for another 60 days.
However, Ukrainian Infrastructure Minister Oleksandr Kubrakov said on Twitter on Saturday that the deal had been extended for 120 days.