BRUSSELS, May 20 (Xinhua) -- The European Commission proposed on Friday to mitigate the impact of the Russia-Ukraine conflict on farmers and agri-food businesses in the European Union (EU) by allowing member states to pay them a "one-off lump sum." The aim is to ensure food security and price stability.
Small and medium enterprises (SMEs) specialized in agricultural products could also benefit from the measure.
"After the COVID-19 pandemic, they are now being heavily hit by the consequences of the (Russia-Ukraine conflict)," European Commissioner for Agriculture Janusz Wojciechowski said. "For some, survival is at stake. With this measure ... we support them so they can keep producing the food the world needs, care for their land and provide for their families."
Farmers and agri-food businesses are facing cashflow problems as commodity prices have increased recently due to the Russia-Ukraine conflict.
"Such increases in prices, notably for energy, fertilizers and animal feed, are disrupting the agricultural sector and rural communities, leading to liquidity and cashflow problems for farmers and small rural businesses active in processing, marketing or development of agricultural products," the European Commission said in a press release published on Friday.
EU member states will have the option to use up to five percent of their 2021-2022 budget from the European Agricultural Fund for Rural Development (EAFRD), or 1.4 billion euros (1.48 billion U.S. dollars), to support their farmers and agri-food SMEs.
Payments to the selected farmers and SMEs should be executed no later than Oct. 15, 2023. Each individual farmer and agri-food SME could receive up to 15,000 euros and 100,000 euros, respectively.
Beneficiaries should be those "most affected by the current crisis and who are engaged in circular economy, nutrient management, efficient use of resources or environmental and climate-friendly production methods," according to the press release.
This proposal follows a 500-million-euro support package for farmers announced on March 23, along with other support measures, such as using fallow land for food and feed crops, more advances of direct payments, and support measures for the pig market.
The monitoring of agricultural markets impacted by the conflict is also strengthened, as the Commission wishes to have an up-to-date overview of stocks.
EU member states now have to notify the Commission of their "monthly stocks of cereals, oilseeds, rice and certified seeds of these products held by relevant producers, wholesalers and operators," according to the press release. (1 euro = 1.06 U.S. dollars) ■