EU Farm Commissioner Phil Hogan presented the EU agriculture ministers in Brussels on Monday details. The aim was “the recovery much needed in prices paid to the farmers, so that they can live from their work,” explained Hogan. Federal Agriculture Minister Christian Schmidt (CSU) assumes that farmers will be “in the fourth quarter of this year,” money.
To get the oversupply of milk in the handle and thus to stabilize prices, the EU wants pay 150 million euros to milk producers to cut back production. Currently, many farmers can no longer do business cover costs. The aid is intended to flow between the beginning of October and end of December, according to Hogan. Farmers who are willing to reduce their production can apply from September. “I hope that there is considerable interest,” Hogan said. “Because if that is so, then this means that prices will rise (the shortage) 2017th”
The remaining 350 million euros will go to the EU countries for distribution, of which the largest amount of nearly 58 million euros in Germany. “The 58 million (…) to get the dairy farmers substantially,” promised Minister Schmidt.
The federal government could double that amount from its own resources still. Schmidt has already announced that he would later this week with Finance Minister Wolfgang Schäuble (CDU) talk about a national increase in resources. The German Farmers’ Association claimed that the aid “quickly and efficiently” pay. “In order to support the dairy farmers in good time, a payout in the fall of this year is imperative,” said association chief Joachim Rukwied.
Each state can decide exactly how he used his share of 350 million. For example you can promote small businesses or farms, cut back on production. Of which could not only dairy farmers benefit, but also for instance farmers who breed pigs or other animals.
Lower Saxony Agriculture Minister Christian Meyer (Green) was disappointed. “That would lead in nationwide around 71 000 holdings to just 800 euros per dairy farm out”, he calculated for Germany before. “So much loses a dairy farmer in Lower Saxony on average currently every week.” Meyer argues for a temporary cap on production in Europe. This rejects Commissioner Hogan from however. The EU regulated the amount of milk for over 30 years with a predetermined ceiling. Last year, the EU milk quota ran out.
The EU wants to engage not only with financial help and incentives to reduce production. The European Commission in Brussels would continue to assume costs for the storage of skimmed milk powder. Since summer 2014, the EU thus contributing to the shortage of milk supply, the program is now to be extended to February 2017th Actually, it was due to expire in late September.
With the new package, the EU provides farmers for the second time within a year cash injection of 500 million euros. One package to the same extent they had already decided last September. Details of the new aid package, the European Commission intends to develop in the coming weeks, together with the EU Member States.
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