Brussels wants to see member states supporting farmers engagement with risk management tools in the wake of two input price spikes in the recent past – that resulting from the 2022 outbreak of war and that which came after the outbreak of war in the Middle East this year.
The European Commission’s plans for the next CAP would allow member states to come forward with supports for farmers in sectors that experience either a drop in income or a drop in annual farm output of 20% or more in both cases.
It has said that countries that already have risk coverage systems in place, such as those with state-involvement in crop insurance schemes as France has, will not have to put these risk management tools in place.
Any payments would require the calculation of specific losses at farm-level under the Commission proposals, which would also allow for separate payment triggering thresholds for young farmers and new entrants than apply generally.
SHARING OPTIONS