'Agriculture crisis reserve must be significantly increased'

The agriculture committee in the European Parliament wants the crisis reserve for the agricultural sector to be increased to €1,5 billion, compared to €400 million. This money should be used to take extraordinary measures when a crisis occurs.

According to the Agriculture Committee of the European Parliament, it is necessary that the crisis reserve for agriculture is increased to €1,5 billion. This amount can be used to pay for extraordinary measures in the event of a crisis. In addition, the private storage of meat or the intervention for the purchase of milk powder can be paid for from this.

Unused credits
The European Commission previously announced that it would pass on the bill for various crisis measures to the member states. This would free up extra money for other policies. The Agriculture Committee of the European Parliament, however, disagrees. Instead, they want unused credits from the European Agricultural Guarantee Fund and the proceeds from administrative sanctions in the agricultural sector to be added to the crisis reserve. 

When working in the above way, the Agriculture Commission expects that around € 1,5 billion will be made available for the crisis measures. Should this amount not be high enough, the financial discipline mechanism, which reduces direct payments to farmers, should be activated. However, this should only be used as a last resort, and with the exception of the first €2.000 in payments.

Not meeting requirements
In addition, the Agriculture Committee announces that agricultural entrepreneurs who repeatedly fail to comply with the legal requirements regarding the environment, animal welfare or food quality in the new proposals will lose 10% of their rights; that is currently a maximum of 5%. As a result, these farmers can be reduced by a total of 15% on the amount to be paid. 

The above proposals still have to be approved by the entire European Parliament. However, this will only happen after the European elections between, which take place on Thursday 23 May and Sunday 26 May.

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

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