Food prices to rise as leaders agree farmers will have to depend on market prices

FARMERS will have to depend on market prices, which is likely to push up the price of food under major reform of the EU’s Common Agriculture Policy agreed by Taoiseach Bertie Ahern and French President Nicholas Sarkozy.

Direct subsidies for farmers are due to end after 2013, but a new plan closely linked to food security, the environment and energy should take its place France as the main beneficiary of the EU subsidies for farmers that totals €55 billion this year has fought to maximise the funds available, and traditionally Ireland has done extremely well as a result.

However, Mr Sarkozy surprised fellow EU leaders earlier this month when he announced a change in France’s attitude to the review of CAP planned for next year.