CAP boost for small and medium-sized German farms
Total subsidies of €6.2 billion per year will go to German farmers, following a 10% cut in the reform. Support programmes for rural infrastructure and eco-farming will benefit from €220 million (4.5%) redistributed from direct payments. Up to now, Germany’s large producers, particularly in the east, were the main beneficiaries. In the new plan, these companies continue to receive support to recover from their disadvantaged position after German reunification in 1989, but this “bonus” will expire in 2020.
The latest agreement will provide an extra €50 bonus for each of the first 30 hectares of land, thus helping small farmers. This concession allows Germany to avoid overall capping of subsidies. Farmers aged under 40 will get an additional €50 per hectare, limited to the first 90 hectares and a maximum of five years.
