The EU agriculture budget for the upcoming financial year has been given a trim.

Outgoing Commissioner Dacian Ciolos had requested a budget giving him scope to deal comprehensively with the market crisis caused by the political decision to impose a trade ban with Russia.

However, his proposal was narrowly defeated on a vote by his fellow commissioners.

The central issue surrounded how the €450m “assigned revenue” fund, which included the 2013-2014 superlevy windfall money, would be utilised. This extra money has effectively already been spent within DG agri on measures addressing the Russian crisis, mostly to the fruit and vegetable sector.

Now, however, they are being re-allocated to humanitarian crises and to countering the spread of the Ebola virus – both important issues. However, the superlevy is meant to be a dairy market control measure, so surely this money will remain in the sector, particularly as we move to a post-quota situation.

This will probably trigger the crisis reserve fund to be utilised to address the considerable fallout from the Russian trade ban. If that €440m fund is exhausted, it would leave little scope for dealing with an extended slump in general dairy markets as we move into a post-quota situation. Ironically, the budget commissioner who blocked Ciolos’s proposals is Polish, given that Poland, along with Finland and the Baltic republics of Latvia, Lithuania, and Estonia, are most affected by the trade ban.

At Commissioner Phil Hogan’s hearing before the agricultural committee two weeks ago, the Polish representatives focused almost exclusively on this issue. The incoming commissioner will be disgruntled to note that the outgoing Irish commissioner, Maire Geoghegan-Quinn, sided against agriculture on the vote.

It means Hogan will be strapped for cash next year and will require support from Parliament and the ministerial council for funds.