Commissioner Wojciechowski presented the Commission’s proposal to Ministers of agriculture in today’s agriculture Council meeting. Worth €56,3 million financed by the agricultural reserve, this support is expected to compensate affected farmers for the economic loss due to increased imports of cereals and oilseeds and limit the impact of market imbalances on their planting decisions.
Farmers in countries bordering Ukraine have been expressing concerns about effects of the increased imports of Ukrainian cereals and oilseeds on local markets. The trade disruptions incurred by the Russian aggression should not take place at the expense of farmers from neighbouring countries.
Based on the assessment sent by affected Member States, the Commission analysed the situation, looking at excessive supply of products at national and regional level, and the possible impact on prices for domestic production. The pressure on logistical chains, weighing on prices and market opportunities for farmers close to the border, was also taken into account, notably for Romania.
The financial aid will be distributed to the three Member States who will then distribute it to farmers as soon as possible. The Commission proposes to allocate €29,5 million to Poland, €16,75 to Bulgaria and €10,05 million to Romania. The three countries can complement this EU support up to 100% with national funds which would amount to a total financial aid of €112,6 million for affected farmers.
The Commission would expect payments to be made to farmers by 30 September 2023, with the three countries also notifying the Commission how the funds were distributed and how they helped farmers, among other things.
The Commission’s draft measure, in the form of an implementing regulation, is currently being discussed with Member States who will vote on it in the committee meeting for the common organisation of agricultural markets scheduled on 30 March. If the measure is approved, it will be published in the Official Journal of the European Union early April and enter into force the day following its publication so that Bulgaria, Poland and Romania can implement it without delay.
The Commission has been helping Ukraine and its farmers in planting and growing cereals and oilseeds, much needed for themselves and for the world, and facilitate their exports, notably through the Solidarity Lanes and the Black Sea Grain Initiative, and by temporarily eliminating all duties and quotas on their exports. The Commission is fully committed to continue supporting Ukraine in these difficult times while monitoring the impact of the Russian aggression against Ukraine on EU farmers.
To mitigate the consequences of the brutal Russian aggression against Ukraine for EU farmers and support them, the Commission has also introduced a comprehensive package of measures, following the Commission’s Communication on Safeguarding food security and reinforcing the resilience of food systems:
- A support package of €500 million, including by making use of the crisis reserve, to support the producers most affected by the serious consequences of the war in Ukraine. It amounted, adding national top-ups, to a total support of €1.2 billion
- An exceptional and temporary derogation to allow the production of any crops for food and feed purposes on fallow land for claim year 2022 and 2023, while maintaining the full level of the greening payment for farmers
- An exceptional measure funded by the European Agricultural Fund for Rural Development (EAFRD) to allow Member States to pay a one-off lump sum to farmers and agri-food businesses affected by significant increases in input costs
- Private storage of pigmeat to reduce the supply-demand imbalance, partially caused by Russian`s invasion to Ukraine.
- Dedicated dashboard presenting detailed statistics on prices, production, and trade of key agriculture commodities [milling wheat, maize, barley, rapeseed, sunflower oil, and soya beans] at EU and global level
- The Commission had proposed last July a suspension of tariffs on certain inputs for fertiliser. This suspension has been adopted and is in force since 17 December 2022.
- A wide range of actions and guidance on how to addresses the availability and affordability of fertilisers in the EU and globally.
- Publication date
- 20 March 2023
- Directorate-General for Agriculture and Rural Development