Farmers will be able to receive up to 70% of their direct payments in advance as of October 16, compared with 50% currently, the European Commission has announced today (Friday, September 13).
This is provided that member states make use of an authorisation made by the European Commission which allows them to pay higher advances of Common Agriculture Policy (CAP) funds.
Similarly, advance payments for area and animal-based interventions under rural development can be increased by up to 85%, instead of the usual 75%.
The commission said EU farmers continue to face liquidity problems, notably due to extreme weather events which have had an impact on yields in recent years, as well as high interest rates on European financial markets and high prices of agricultural inputs and commodities.
To respond to these challenges, and in line with one the CAP’s fundamental objectives to provide an economic safety net for EU farmers, a number of member states requested this authorisation.
The commission said it took “swift action” to provide this “much-needed” support to EU farmers while also ensuring legal certainty for member states.
The commission has also distributed part of the agricultural reserve to farmers of certain member states who faced significant difficulties due to exceptional weather.
EU farmers
Last week, the president of the European Commission Ursula von der Leyen received the final report of the Strategic Dialogue on the Future of EU Agriculture, handed over by the group’s chair, Prof. Peter Strohschneider.
Entitled ‘A shared prospect for farming and food in Europe’, the report presents an assessment of challenges and opportunities, followed by a set of recommendations.
The suggestions will guide the work of the European Commission when shaping its Vision for Agriculture and Food, to be delivered in the first 100 days of president von der Leyen’s second mandate.