EU Increases Financial Aid to Farmers Amid Protests Over Climate Rules

The European Commission announced that EU member states are allowed to increase the financial advances given to farmers, raising them to 70% for direct payments and 85% for rural development interventions. This decision follows farmer protests and addresses issues like extreme weather, high interest rates, and expensive agricultural inputs.

In response to farmer protests, the European Commission has approved an increase in financial aid for EU farmers. The new policy allows member states to raise advances of Common Agriculture Policy funds, offering up to 70% in direct payments and 85% for area and animal-based rural development interventions, effective from October.

This adjustment comes after farmers faced significant liquidity issues, exacerbated by extreme weather, high financial market interest rates, and rising costs for agricultural inputs. Previously, such payments were capped at 50% and 75%, respectively.

The EU has previously implemented similar measures during the COVID-19 pandemic. The recent policy changes follow widespread farmer protests targeting low income, cheap food imports, and stringent regulations. Consequently, the EU has rolled back some climate-related policies, such as pesticide reduction laws and emission reduction targets.

(With inputs from agencies.)