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European Union

European Commission's Budget Proposal Sparks Outrage Among Farmers

Strategic Insights

— 2 min read

As the European Commission presents its EUR 2-trillion budget blueprint for 2028-2034, farmers and agricultural organizations across the continent are up in arms, warning that the proposed changes to the Common Agricultural Policy (CAP) and budget cuts will have far-reaching consequences for food security, rural development, and the livelihoods of millions of farmers.

The proposed merger of the CAP's two pillars into a single fund or integration into a broader cohesion policy has sparked criticism from farmers' associations, with many expressing concerns about the potential loss of funding for climate adaptation, sustainability, and direct aid to farmers. The Commission's reassurance that support for farmers will be better targeted has failed to alleviate concerns, with some farmers' organizations labeling the proposal a 'disaster waiting to happen' and a 'dangerous turning point'.

Key Takeaways:

  • The European Commission's proposed budget for 2028-2034 eliminates the two-pillar structure of the CAP, merging the two main funding areas into a single fund or integrating it into a broader cohesion policy.
  • The proposed changes would transfer decision-making power over agricultural funds to individual member states, potentially creating inequalities among farmers across the EU internal market.
  • Farmers and agricultural organizations are objecting to the abolition of the two-pillar structure, citing concerns about drastic cuts to the CAP budget and the potential loss of funding for climate adaptation, sustainability, and direct aid to farmers.
  • The proposed merger would transfer EUR 300 billion to support farmers, but this is significantly less than the current budget of EUR 387 billion, of which 270 billion is in direct payouts.
  • Farmers' organizations are warning of potential negative impacts on food production, food security, and rural development, as well as increased reliance on lower-quality imports from third countries.
  • The budget cuts and changes to the CAP have sparked protests from farmers' organizations, with demonstrations planned as negotiations on the MFF proposal continue.

Statistics:

  • Current CAP budget: EUR 387 billion
  • Proposed CAP budget: EUR 300 billion
  • Direct payouts under the current budget: EUR 270 billion
  • Proposed direct payouts: not specified
  • Share of EU budget dedicated to agriculture: 75%
  • Proposed share of EU budget dedicated to agriculture: 60%
  • Number of farmers across the EU: 45 million
  • Number of family farms in the EU: 15 million
  • Value of EU agricultural production: EUR 1.2 trillion

Sources:

  • European Commission's budget proposal for 2028-2034
  • Ursula von der Leyen, President of the European Commission (speech in Brussels)
  • Piotr Serafin, EU Budget Commissioner (speech in Brussels)
  • Christophe Hansen, EU Agriculture Commissioner (speech in Brussels)
  • Ger Koopmans, chairman of LTO Nederland (statement)
  • Coldiretti, Italian agricultural organization (statement)
  • Cia-Agricoltori Italiani, Italian farmers' association (statement)
  • Andrej Gajdos, chairman of the Slovak Agricultural and Food Chamber (statement)
  • Martin Pycha, chair of the Agricultural Union of Czechia (statement)
  • Alois Rainer, Germany's Minister of Agriculture (statement)
  • FNSEA, French agricultural union (statement)
  • Bulgarian Association of Agricultural Producers (statement)
  • Spanish farming organization COAG (statement)

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