01 Apr 2017
DIRECT PAYMENTS REDUCTION – 01 APRILBrussels Daily
Commission proposes annual reduction in direct payments to finance crisis reserve
The European Commission has adopted a proposal to reduce spending on support for farmers for the financial year 2018 in order to create a crisis reserve that can be used should the need arise.
The so-called financial discipline proposal is made each year and reduces spending under the common agricultural policy – specifically direct payments that are funded by the European Agricultural Guarantee Fund (EAGF) – in order to set aside €400m (in 2011 prices) to cover potential crises in agricultural markets.
The proposal for 2018 aims to reduce CAP direct payments in excess of €2 000 by 1.388149%, with the exception of direct payments for farmers in Croatia as they are still being phased into the scheme following their country’s accession to the EU. The money saved as a result will be used to ensure that a crisis reserve of €459.5 million (in current prices) is available in the 2018 budget. The rate is slightly higher than the 1.353905% applied in 2017 (for a reserve of €450.5 million). Read Commission proposes annual reduction in direct payments to finance crisis reserve