€686m to be reimbursed to European farmers

European farmers are to be reimbursed €686 million following a decision by the European Commission to return money that was deducted from their direct payments during the 2021 budget year.

Irish farmers are set to receive in excess of €21 million, the Commission has confirmed.

During 2021, €879.8 million was deducted from direct payments under the Common Agricultural Policy (CAP) to finance the agricultural crisis reserve.

The money was also deducted to ensure that the overall ceiling of the European agricultural guarantee fund (EAGF) was not overrun, the Commission said.

However, the crisis reserve of €487.6 million was not used in 2021 and, together with some “additional appropriations” available for reimbursement, a “large share of the amounts deducted from direct payments this year will be reimbursed” according to the Commission.

What is the EAGF?
The EAGF helps Europe’s farmers to provide a secure supply of safe, healthy and affordable food. Through this, EU countries must offer:
1. A basic payment scheme for farmers;
2. Green direct payments (for sustainable farming methods);
3. A payment for young farmers.

These reimbursements commence from today (December 1, 2021).

Аgriland.ie

Tags: subsidies, EU