Aid arrives for the sector, paralysed by the soaring prices of raw materials
European aid is coming for the agricultural sector paralysed by the increase in raw material costs. The European Commission has presented an exceptional measure, financed by the European Agricultural Fund for Rural Development (EAFRD), to enable Member States to pay a one-off lump sum to farmers and agri-food businesses affected by significant increases in the costs of production factors.
Once adopted by the co-legislators, the measure will allow Member States to decide to allocate the funds available up to the limit of 5% of their EAFRD budget for the period 2021-2022 direct income support for farmers, small and medium-sized enterprises involved in the processing, marketing or development of agricultural products. Member States should allocate this support to the beneficiaries most affected by the current crisis and engaged in circular economy, nutrient management, resource efficiency or environmentally and climate friendly production methods.