The coronavirus pandemic not only has put into risk the health of millions of people but also has hit hard the economic and productive fabric. The farming sector, which is essential for the global food security and reassurance of a society plunged into uncertainty, neither escapes from its consequences.
To alleviate the effects of this pandemic, a set of European aid arrangements for the farming sector have been launched. And in TEYME we want to give you all the information that as farmers you need to know.
European subsidies for farmers
The authorities of the European Union are completely sure about the strategical value of the agriculture. For this reason, the European Commission reacted launching a set of aid arrangements for the primary sector during the first weeks of the epidemics.
In the words of Janusz Wojciechowski, Commissioner for Agriculture and Rural Development, this set of actions will help to support the farmers and those who most need it. Some markets are suffering a lot because of this crisis. However, the Commissioner expects that the application of these measures could give a real support and send a positive signal to the markets.
Thus, thinking about keeping a sector as strategic as agriculture afloat during the crisis and in order to revive the food supply chain, the European Commission has taken far-reaching decisions. Some are political and logistical ones, such as the creation of green channels for fast-track clearance of goods through closed borders tolls, or the consideration of farming seasonal workers as essential so that the presence of enough working labour in the farming lands can in some way be guaranteed. Other measures imply economical subsidies which would be granted to all UE farmers.
Range of subsidies for the farming sector
The subsidies put forward by the European Commission have three main lines available:
- Direct economical transfers
- Exceptional changes in the market
- Flexibilization of the Common Agricultural Policy
The aim of this last measure is that this mechanism could work faster, ensuring that benefits reach directly the farmers.
Direct support to the farmers
The European Commission has arranged loan lines and financial guarantees so that the farmers can dispose of until 200.000 € so that they can defray the expenses of their land plots during this time. This aid consists in liquid funds granted at very low interest rates and very favourable refunding conditions.
Moreover, the Member States which still have funds available aimed at rural development they will be able to reassign this money. They will be authorized to pay with them direct subsidies to the farmers and small agri-food enterprises all through 2020. In total, every farmer would receive until 5.000 € and every SME of farming sector 50.000 € maximum.
On the other hand, the Commission tries to increase the advance payments for the CAP (Common Agricultural Policy) subsidies, taking them from 50 to 70 %. Other advance payments related to rural development will be increased too, moving from 75 to 85%. Only in Spain, these advance payments will benefit in total 700.000 cattle breeders and farmers, what gives us some idea of their significance.
Eventually, the European Commission has decided that within the context of the Temporary Frame of the Commission for state subsidies, the farmers can be granted aids until 100.000 € maximum per farming land plot, whereas the commercialising and transforming companies can request until 800.000 € for this concept. This money can be used, for example, for buying phytosanitary products or
herbicides, or for the renewal of machines such as tractors, trailers,
air-blast sprayers, or
dusters among other sorts of machines.
Extraordinary measures for the market
The European Union has taken as well extraordinary measures to relax the market rules. With these it tries to guarantee the chain supply and to keep under control the prices of the farming products.
For example, the rules of execution of aid programs towards sectors such as wine, fruit trees, vegetables or olive trees growers have been relaxed. The idea is to limit the available offer to balance prices.
Moreover, the Commission has decided to allow the derogation of some rules of competence in force in all the Union. This will benefit some sectors such as dairy industry, flower farmers or potatoes ones. According to this change, the operators will be able to reorganize their markets and take measures such as the collective planification of the production. Thus, the volume which will be launched for sale will be better controlled and the withdrawal of some products of the market will be allowed.
Increase the flexibility of the CAP (Common Agricultural Policy)
Since some decades the agricultural policies of the Union are articulated by means of the CAP, an organizational instrument which allows that the European farming sector bears the competence coming from third countries farming sectors. Thanks to it, the producers can get access to the markets, aids, subsidies and other benefits. In exchange, the farmers must follow strict rules of effectiveness and quality.
To enable an easy access to all these advantages, the EU has decided to extend the period terms to request aids. And, what is more important, the number of inspections on the fields has been reduced so that an access to the aids by the producers can be guaranteed.
Who can request them
Any primary producer from the farming sector inside the EU territory can request these aids of the European Union against the effects of the COVID-19. In addition, the processing SME can request them too.
In conclusion, even though the uncertainty and difficulties that the epidemy has brought up at worldwide scale still affect the farming sector, these decisions can help the farmers, on a European level, to be better protected.
