€100 million to support farmers from Bulgaria, Hungary, Poland, Romania and Slovakia

Following the deal reached with Bulgaria, Hungary, Poland, Romania and Slovakia on 28 April, the European Commission presented today its proposal for a support measure worth €100 million to representatives of all Member States. This amount, taken from the agricultural reserve for 2023, will be directed to farmers producing cereals and oilseeds in these five frontline Member States. The support will help the Member States bordering Ukraine to compensate partially the issues related to logistical bottlenecks resulting from the imports of certain agri-food products from Ukraine. In parallel, Bulgaria, Hungary, Poland and Slovakia have committed to lift their unilateral measures on wheat, maize, rapeseed and sunflower seed and any other products coming from Ukraine.

The Commission proposes to allocate €9.77 million to Bulgaria, €15.93 to Hungary, €39.33 million to Poland, €29.73 to Romania and €5.24 to Slovakia. The five countries can complement this EU support up to 200% with national funds which would amount to a total financial aid of €300 million for affected farmers. The allocation takes into account the weight of each concerned country in the Union’s agricultural sector, on the basis of their amount of CAP’s direct payments, as well as the relative growth of Ukrainian imports of cereals and oilseeds into those Member States.

The details of the Commission’s proposal were discussed with Member States’ representatives during an ad hoc committee meeting for the common organisation of agricultural markets. All Member States will vote on the proposal at the next committee meeting.  If the measure is approved by Member States, the Commission will adopt it. It would then be published in the Official Journal of the European Union and enter into force the day following its publication so that the five concerned Member States can implement it without delay.

The authorities from the five Member States will distribute the aid to farmers growing cereals and oilseeds in the affected areas, taking into account the extent of their difficulties and economic damage and ensuring that they are the ultimate beneficiaries of the financial support. Payments should be made by 30 September 2023. Bulgaria, Hungary, Poland, Romania and Slovakia will have to notify the Commission about the details of the measure’s implementation, notably the criteria used to calculate the aid, the intended impact of the measure, its evaluation, and the actions taken to avoid distortion of competition and overcompensation.

Background

Farmers in Member States in the vicinity of Ukraine have been expressing concerns about effects of the increased imports of Ukrainian cereals and oilseeds on local markets resulting from logistical bottlenecks. When increased domestic production has coincided with increased imports from Ukraine, this has led to excessive supplies on the market. These ample availabilities of cereals and oilseeds have caused a significant pressure on the local farmers in terms of prices, storage availabilities and surging transport costs. It has also led to reduced market outlets.

The Commission has been working on a common European solution to address the concerns and support affected farmers. On 28 April, a deal was reached with the four countries and Romania, who is in the frontline of Ukrainian exports via the Solidarity Lanes. On 2 May, the Commission adopted exceptional and temporary preventive measures under the ATM Regulation with Ukraine to only allow the transit of rapeseed, sunflower seeds, maize and wheat through these countries. In parallel, the EU is taking actions to facilitate the transit of UA grain exports via the Solidarity Lanes to the regions that need it most. This includes continued work on lowering overall logistics costs, better coordinating transit and enhancing infrastructure in ports, border interconnections and other conduits under the EU Solidarity Lanes, as well as supporting the Black Sea Grain Initiative.

In relation to the effect of excessive imports from Ukraine, the Commission has already adopted a support measure worth €56,3 million, financed by the agricultural reserve, dedicated to Poland, Bulgaria and Romania. The measure entered into force on 6 April 2023.