Plans for a radical overhaul of EU subsidies for farmers risks unbalancing the playing field, the European Court of Auditors (ECA) has warned.
Under the EU’s budget proposals for 2028 to 2034, the Common Agricultural Policy (CAP) would be merged into a mega fund worth €865 billion.
Money from the new National and Regional Partnership Plans would be used for funding not just farmers, but fishermen, rural development, defence, technology and energy.
The European Commission says at least €300 billion from the pot would be reserved for agriculture, but farmers are worried.
Irish Farmers’ Association believes it will lead to farmers’ incomes being cut. It wants the CAP to be maintained.
Now some of the IFA’s concerns have been validated by the EU watchdog, the European Court of Auditors.
It has just completed a thorough analysis of the European Commission’s proposals and the results are scathing.
“For farmers, such uncertainty is real every single day. Will the sun shine? Will it rain enough? Or too much? These are factors beyond farmers’ control. Policy uncertainty should not be one of them”, said Iliana Ivanova, the ECA auditor who authored the report.
“This is a substantial change to the way agricultural policy will be funded”, she said.
The European Commission says one central fund will be “simpler, more flexible and tailored, to maximise the impact of every euro invested”.
The ECA warns that the impact for farmers could be the exact opposite.
“We identify the following key risks: a complex CAP structure and decision-making process that may delay funding; a potential uneven playing field due to greater flexibility given to member states; continued uncertainty about the final CAP budget, which will only be known after the adoption of the plans; and not very clear payment and reporting rules”, Iliana Ivanova said.
If new flexibilities allow some member states to give their farmers more than others, that could create an imbalance within the European Union.
“The greater flexibility granted to member states, while allowing for a more tailored approach, should not put at risk the ‘common’ elements of the CAP, as that could lead to an uneven playing field for farmers and negatively affect fair competition and the functioning of the internal market”, the ECA warns.
“To mitigate this risk the [European] Commission will need to play its strengthened steering role effectively.”