MEP warns farmers face cuts

Ray Ryan, Agribusiness Correspondent

Mairead McGuinness, speaking at the agriculture committee in Strasbourg, warned that farmers must be given clear information about the future status of the new single farm payment regime, which came into effect on January 1.

She said: “The single farm payment regime is to run until 2013, but already its future is in doubt beyond 2007, with budgetary pressures likely to see further cuts in payments.”

The European Parliament agriculture committee was debating the issue of future funding of the EU.

Ms McGuinness said in 2006 payments to the ten new member states will amount to only 30% of the standard rate, which is due to be reached in 2014 following a series of gradual increases.

The commission has not clarified how it intends to fully fund payments to farmers in these new member states or how it proposes to fund the accession of Bulgaria, Romania and possibly Croatia.

“The freezing of the payments at 2006 levels will lead to a relative reduction in the proportion of the total EU budget accounted for by agriculture,” she added.

Ms McGuinness said the EU Commission must indicate how it intends to proceed beyond 2007 and how it intends to make savings. In addition, account has not been taken of the impact of the commission’s proposed reform of the sugar regime, which will require additional funding.

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