President of the European Commission Ursula von der Leyen has told a meeting of farmers in Sweden that “no farmer should be forced to sell products below cost”.
In a speech to the general assembly of the Federation of Swedish Farmers, the largest farm organisation in Sweden, President von der Leyen claimed that a new observatory of production costs, margins and trading practices in the agri-food supply chain, which was announced earlier this year, will help avoid this.
In her speech, delivered by video, the commission president said that “further measures will follow” to strengthen the negotiating power of farmers across the value chain.
“Day-in and day-out, farmers across Europe care for their land, to provide us with high-quality food. But you are facing a growing host of challenges.
These challenges, President von der Leyen said, include global market instability triggered by conflicts, volatile prices, and impacts of weather events.
“Not only do we hear your concerns about the future, we are taking actions, at the European level, to support you immediately, as well as in the mid and long-term,” she said.
These actions, the commission president said, include the recently approved simplifications to some aspects of the Common Agricultural Policy (CAP).
These include the exemption of farms under 10ha in size from controls and charges.
“Doing more for the environment is also a matter of trust. And we trust you,” President von der Leyen claimed.
She added: “We’ve heard your request to get a fair price for your products. I think, in our union, no farmer should be forced to sell products below cost. As a first step, we have launched an observatory to create more transparency on the food value chain. Further measures will follow, to strengthen the negotiating power of farmers across this value chain.”
“We have a clear and simple goal. Your hard work should pay off,” the commission president said.
However, she said that there was no “quick fix” for other issues.
“How can we encourage more young people into the profession? In Sweden, a new young farmer can already receive up to €32,000 in European funding to help set up their agricultural activity. Yet, we must do more to make farming an attractive career choice,” President von der Leyen said.
She added: “This starts by making it easier for this generation of farmers, and by giving a clear perspective to future generations of farmers. This is why I initiated a strategic dialogue on the the future of agriculture in the EU.”
This strategic dialogue, which the commission announced in January, will provide initial recommendations in the summer, which President von der Leyen said will “guide our efforts in the years to come”.
“As we continue this dialogue, you can count on Europe’s unwavering support. We are as committed to the land as we are to our farmers, and we want to see you thrive,” she added.