The EU’s exceptional one-off lump sum solution announced at the end of May 2022 is not enough, according to IFA Rural Development Chairman Michael Biggins. He said the EU’s lump sum proposal is “robbing Peter to pay Paul” as it only moves an inadequate amount of Pillar II money from 2024/25 to 2023.
“Farmers have been told there is over €15m from the EU Crisis Reserve Fund and it can be topped up with national exchequer funding by up to 200%, which would bring it close to €50m. There’s no indication if this co-financing will happen or what kind of supports are potentially going to be made available from the co-financed funds,” he said.
The extraordinary rise in input costs is making production unsustainable. Already low margins for most farmers are being further eroded as a consequence of these increased input prices.
Michael Biggins said if food security is to be guaranteed, then farmers need adequate support from the Commission to ensure they survive this crisis. The EU should come forward with a significant package for farm families.