Farmers could receive a once-off lump sum payment to offset cost increases they’ve had to shoulder since the outbreak of war in Ukraine. This is if a proposal by the European Commission bears fruit. This direct cash injection could see farmers receive up to €15,000, with SMEs potentially securing €100,000.
To be formalised, the proposal must get approval from the Council of Ministers and the Parliament. The proposal is to allow member states to make the one-off payment from the European Agricultural Fund for Rural Development. If agreed on, the lump sum payment can be made until October 2023.
Meanwhile, the Ulster Farmers’ Union (UFU) has commented that the Ukrainian situation has highlighted the fragility of food security both at home and abroad. David Brown, UFU president, said that, “Farmers are seriously struggling to manage unprecedented inflationary costs. Over the past year input prices for diesel, electricity, steel and concrete have doubled. Fertilisers, along with agri chemicals, have tripled in price over the same time period. If government as well as retailers don’t step in to ease the pressure, our food security is going to take a massive hit impacting the availability of locally produced, affordable food for consumers.”
The union added that “Governments in EU countries are stepping up and supporting their farmers and growers, we need the UK government to do the same. This summer will be a critical time in the production calendar, both for livestock and dairy farms planning their forage in the autumn and for crops in 2023. This is a key time to signal confidence for smooth ordering of inputs and reliable outputs for the next 18 months.”