COVID-19: MEPs boost aid for farmers from the EU rural development fund
- Up to €7,000 for individual farmers, up to €50,000 for agri-food SMEs
- Lump sum payable by 30 June 2021, applications to be approved by 31 December 2020
- Ceiling for aid raised to 2% of envelopes for rural development programmes
The Agriculture Committee approved rules to increase the financial support that EU countries could soon give to farmers and agri-food SMEs from the EU rural development fund, on Thursday.
The emergency measure, proposed by the EU Commission as part of a wider package to help farmers deal with the effects of the COVID-19 crisis, would allow EU member states to use money from their rural development programmes for a one-off lump-sum compensation to farmers and small rural businesses. This targeted liquidity support should help farmers and agri-food SMEs remain in business.
To ensure a swift approval of the new temporary measure, the Agriculture Committee decided on 26 May to forward it directly to the plenary. However, as MEPs wish to improve it, today they adopted a set of amendments, informally agreed with the Council, to raise ceilings for the aid and to extend the time to release it.
Higher ceilings, more time to release the money
The compensation payable to individual farmers could go as high as €7,000, which is €2,000 more than originally proposed by the EU Commission. The amendment to this end was approved unanimously by 48 votes in favour, none against and no abstentions. The ceiling for the support for agri-food SMEs should remain at the level of €50,000, in line with the Commission’s proposal.
The total amount to finance the liquidity support measure should be limited to 2% of the total contribution from the European agricultural fund for rural development (EAFRD) to rural development programmes in each member state, and not to only 1% as proposed by the EU Commission. This was approved by 43 votes in favour to five against, with no abstentions.
MEPs also want to give member states more time to release the support. They approved unanimously, by 48 votes in favour, none against and no abstentions, an amendment to extend the 31 December 2020 deadline for making the payment until 30 June 2021. However, applications for support will have to be approved before 31 December 2020.
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"I very much welcome the results of today's vote in the committee. This proves once again that Council and Parliament can work closely and quickly together when EU agriculture urgently needs help. I am confident that the plenary will approve this agreement next week and will thus give EU countries another tool to help farmers financially during the Coronavirus crisis. My thanks go also to the Croatian Council Presidency for their fruitful and straightforward cooperation", said rapporteur and Agriculture Committee Chair Norbert Lins (EPP, DE).
Next steps
The set of amendments adopted today will now be tabled for the next EP plenary sitting, scheduled for 17-19 June. Once approved by both Parliament and Council, the regulation should be published in the EU’s Official Journal and enter into force immediately afterwards.
Contacts:
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Jan JAKUBOV
Press Officer