End of stalemate in EU agricultural policy reform

| Foreign Markets |

At the end of September, a long-awaited compromise concerning Common Agricultural Policy was reached. The key EU institutions approved the draft put forward by the ministers of agriculture of the Member Countries. Consequently, EU will be able to undertake such tasks as boosting employment rate in rural areas, improving environmental protection and ensuring food supply safety.

More for the smaller

The new CAP policy involves raising (to 85%) the direct subsidies for farmers from the least developed regions of EU. The necessary funds will be generated by decreasing the subsidies paid to the largest agricultural producers. Those who have been given over 150,000 EUR per year will now receive 5% less. Also, equal opportunities policy means that as of 2019, farmers in every EU country will be getting subsidies worth no less than 75% of the EU subsidy average.

For the young and the environment

Moreover, the compromise has freed up resources for encouraging the young to work in agriculture. Numerous EU countries witness mass migration of the youth from the countryside to the cities. The trend has resulted in decreased agricultural production capacity. Thus, when it comes to supporting young farmers, in 2014-18 EU is planning to allocate 25% more money to this project than today. Additionally, in 2014-20 c. 100 billion EUR will be spent on promoting organic and environmentally-friendly farming.