EU farmers denounce plans to cut subsidies
BRUSSELS, Belgium (AP) – Eager to keep what they have, European Union farmers on Wednesday denounced proposals for radical change in farm subsidies that the regional group’s head office wants enacted before 10 poor newcomers – mostly East European nations – join in 2004. “The deep cuts proposed are a breach of faith with farmers by the EU,” said John Dillon, head of the Irish Farmers Association.
The European Commission proposed to do away with production subsidies long criticized by the United States, Australia and Canada as distorting trade. The plans would force farmers to do more with less and show more concern for the environment, public health and food safety.
But Dillion of the Irish Farmers group said the plan “will result in job losses … and could force thousands of farmers (many of whom) are full-time beef producers into seeking off-farm employment.”
Luc Guyau, head of the French farm group APCA, said the EU had ignored deals governments have with farmers to protect them from unfair competition.
“At the moment when the EU is preparing for enlargement, and when the United States is reinforcing its arsenal of farm aid, politicians responsible should be sending a message of hope … and not cede to temptation of laissez-faire,” he said.
The European Commission proposed a direct payment system for farmers based on past income, not on future output.
Such payments would be capped at 300,000 euros ($295,000) a year, cut gradually over time and supplemented by simplified subsidies for cereals, dairy products and vegetables that would also be reduced.
EU agriculture commissioner Franz Fischler said farmers must meet tough environmental, public health and food safety standards following food crises in recent years in Europe, including mad cow disease, foot and mouth disease and dioxin contamination scares to receive more aid.
“In future, farmers will not be paid for overproduction, but for responding to what people want- safe food, quality production, animal welfare and a healthy environment,” he said.
The commission said reform will save 200 million euros ($199 million) by 2006, money that would be spent on preserving family farms.
But British environment secretary Margaret Beckett said they seek to “simply recycle money in the (EU) agriculture budget” and lead to no great savings.
EU farm subsidies were created in the 1960s. Initially, they made Europe self-sufficient in food, but led to food surpluses in the 1980s that were then dumped on world markets depressing prices there.
The EU’s farm budget in 2002 costs nearly half of the EU’s 98.6 billion euro ($98.1 billion) budget.
Several EU governments may derail membership talks with 10 candidates that are to be concluded in December.
France, Ireland and southern EU nations oppose reform because EU handouts to farmers and poor regions have long been solid vote winners in rural areas.
Expansion has put the current 15 members in a dilemma: The EU has about 8 million farmers. Poland alone has 10 million.
Separate from the overall farm reform, the European Commission has proposed spending 40 billion euros ($38.8 billion) on farmers and poor regions in the new member countries – Poland, Hungary, the Czech Republic, Slovakia, Slovenia, Latvia, Lithuania, Estonia, Malta and Cyprus – from 2004 to 2006.