Commission proposes €574,000 in funds to support farmers in Cyprus

The European Commission has proposed to mobilise €574,000 in funds, as part of a proposal for a total of €330 million in funds for farmers across the EU impacted by adverse climatic events, high input costs, and diverse market and trade-related issues.

The support package proposed, which was announced on Monday, will consist of €330 million in exceptional support for 22 Member States (including Cyprus) from the Common Agricultural Policy budget (along with Belgium, Czechia, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Austria, Portugal, Slovenia, Finland, and Sweden).

More specifically, Cyprus will receive support amounting to €574,358. Member states, according to the press release presenting the measure, member states may complement this EU support up to 200% with national funds.

Member States had shared with the Commission assessments of the difficulties faced by their respective agricultural sectors. The measure will be voted on by the Member States at an upcoming meeting of the committee meeting for the common organisation of agricultural markets.

The national authorities will distribute the aid directly to farmers to compensate them for the economic losses due to the market disturbances, the consequences of high input prices and rapidly falling agricultural product prices, and, where relevant, for the damage caused by the recent climate events, particularly acute in the Iberian peninsula and Italy. The aid can also fund distillation of wine to avoid further market deterioration in the sector.

Payments for the support package proposed, along with another support package that was approved today (which does not include Cyprus) should be made by 31 December 2023. The Member States covered will have to notify the Commission about the details of the measures' 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.

In addition to this direct financial support, the Commission is proposing to allow higher advance payments of CAP funds. Up to 70% of their direct payments and 85% of rural development payments related to area and animals could be available to farmers as of mid-October to improve their cash-flow situation. Member States will also have the possibility to amend their CAP Strategic Plans to redirect CAP funds towards investments that re-establish production potential following destroyed crops, loss of farm animals, and damaged buildings, machinery, and infrastructure due to adverse climate events.

(Source: CNA)