A Brussels-commissioned report recommends a “major overhaul” of EU farm subsidies, proposing that farmers be paid based on income rather than land size, according to the Financial Times. The report, prompted by consultations with stakeholders following farmer protests, urges that current subsidy practices are unsustainable and should support “active farmers” based on their financial status. The findings were presented to European Commission President Ursula von der Leyen on Sept. 4.
The report recommends moving away from the current system of subsidies based on land size to one focused on farmer income. This shift aims to:
· Target support to farmers who need it most, particularly small and mixed farms, young farmers and those in areas with natural constraints.
· Ensure more effective use of the €387 billion CAP budget.
· Address criticisms that the current system disproportionately benefits large landowners.
The report also emphasizes the need for greater environmental sustainability:
· It calls for a “new sustainability benchmarking” system to standardize assessments of sustainable practices.
· The proposal includes increasing the portion of direct payments linked to environmental measures.
· A temporary off-budget fund is suggested to assist farmers in transitioning to more sustainable practices.
Von der Leyen has committed to studying the recommendations carefully. She plans to present a roadmap for agriculture and food policy within the first 100 days of her next mandate.
Bottom line: This is a potential paradigm shift in how the EU approaches farm subsidies and agricultural policy, aiming to balance economic support for farmers with environmental sustainability goals.
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