EU farmer aid package to deliver £25m to UK

Published 18 July 16

A €500m aid package for farmers has been announced today (18 July) by the European Commission.

€350m of this will be shared between EU Member States, with the UK expected to receive €30.2m (around £25.4m*). Individual countries then have some flexibility in how they distribute the money between farmers, subject to conditions imposed by the Commission. Member States also have the option of matching the aid with national funds, potentially doubling the amount of support. The Commission has stated there is scope for this money to cover other livestock sectors, not just dairy. More details are expected over the coming weeks.

The remaining €150m will be used to finance a supply management scheme to provide incentives for reducing milk production.

Member States will also be allowed to advance up to 70% of Direct Payments from October this year and 85% of area-based Rural Development payments.

In addition, the Commission intends to extend the intervention and PSA schemes for SMP, from 30 September 2016 until the end of February 2017.

 

*Calculated using exchange rate for 7 days ending 17 July 2016