European Union member state can allocate more aid to their local EU farmers without any legal and regulatory approvals. The rule has been changed, eased, and approved on Tuesday, the European Commission said.
The rules have been eased to help the EU farmers to get higher aids from the states without regulatory issues and problems and extend the repayment period. The step has been taken to support small EU farmers without market competition.
The national aid cap has been increased without regulatory rules and controls for the small farmers from 1.5% to 2%, keeping an eye on the production period and extend the repayment period.
The amount has been doubled from €25000 to €50000 for small EU farmers in the member states without any regulation to support them. The new rules will apply until the 31 December 2032.
Current EU Farmers Aid
EU Farmers can get up to €20000 state aid per beneficiary and €25000 if the EU member state has central register to register de minimis aid. Alongside the maximum amount per beneficiary in the farming sector, every state member has a national cap to avoid extra allocation of funds some sectors to avoid competition.
The change will implement some new rules and regulations in the member state to ensure compatibility and transparency in the member states.
1: Central Register:
A central register is not mandatory for state members of the EU now. But it will be necessary for the state member state to register the state aid allocated to the EU farmers to ensure transparency in the market.
2: Deletion of national cap:
This ensures that the EU state members do not allocate more than 50% of their funds to one product sector.
3: Adjustment to Nation Cap:
The national cap has been increased for EU farmers from 1.5% to 2% based on the average production of the member state in the corresponding period.
4: Increase the aid amount:
The aid amount has been increased to €50000 that was €25000 per beneficiary for the EU Farmers of the state members.
Article 108(3) of the Treaty on the Functioning of the European Union requires Member States to inform the commission about the aid approved for EU farmers by the state members. The changes will affect the article and the member states do not need to notify the commission about the specific aid issued to the farmers.
Most of the EU member states asked to ease the rules for the farmers to get instant funds for crises and problems. They were facing hurdles due to the long process of the aid in EU member states.
The commodity prices are currently changing and the agricultural sector is facing issues in competing with these issues. The eased rules will help the EU farmers to get aid on time.
Many stakeholders asked to revise the rules to ease conditions for the farmers. The farmers can now get easy, fast, and high aids. This will help the farmers hit by climate change to get aid easily to solve their issues.
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