The Commission acknowledges the depth and duration of the current agricultural crisis as well as the considerable efforts made by the member states to support their farmers. Commission is responding with its own meaningful package of measures.

The series of measures have been outlined by Commissioner Phil Hogan, responsible for agriculture and rural development: the EU complements €500 million support package from last September and shows the Commission's determination to play its full role in assisting European farmers. Commissioner Hogan announced these measures at the Council of Agriculture Ministers’ configuration.

Financial support

In the interest of EU farmers, the Commission is using all EU legal instruments and actions to enable farmers to be resilient in the face of volatility whilst providing immediate assistance to them.

The response is a comprehensive one, taking on board as many of the proposals as can be done, within the EU legal and budgetary constraints: this is a package of measures which, when taken with the full implementation of the September solidarity package, can have a material and positive impact on European agricultural markets and it should now be given the chance to succeed.

In times of numerous crises and budgetary constraints, the Commission has mobilised more than €1 billion over two years, including €500 million support package from September 2015.

The measures are highly adjustable so that the EU states can use them to the best of their capacities depending on their specific national situation. Dairy, pig meat, fruit and vegetable sectors are the main focus of this support package.

Summary of the proposals

= Application of voluntary supply management. The Commission will activate, for a limited period of time, the possibility to enable producer organisations, interbranch organisations and cooperatives in the dairy sector to establish voluntary agreements on their production and supply. Still Common Market Organisation (CMO), which is specific to the agricultural sector, can be applied in case of severe imbalance in the market. The Commission has concluded that strict conditions for the dairy sector would be fulfilled in the current circumstances. This is an exceptional measure, which must also safeguard the EU internal market and was included by the legislators in the 2013 CAP reform but never used before.

= Temporary increase in state aid. The Commission will give its full consideration to a temporary acceptance of state aid that would allow EU states to provide to a maximum of €15,000 per farmer per year and no national ceiling would apply. This can be done immediately and much more quickly than an increase in de minimis ceilings.

= Doubling intervention ceilings for skimmed milk powder and butter. The Commission will increase the quantity ceilings for skimmed milk powder and butter put into intervention from 109,000 tonnes and 60,000 tonnes respectively to 218, 000 tonnes and 100,000 tonnes. In this way the Commission intends to commit to supporting fixed intervention price.

= Strengthening the producer in the supply chain. The role and position of producers in the food supply chain continues to be of great concern. The Agricultural Markets Taskforce, launched as part of the €500 million support package from September 2015, will deliver in autumn conclusions and legislative recommendations to improve the balance in the chain. It was decided that High Level national representatives will meet with the Agricultural Markets Taskforce with the view to specifically look at the dairy sector.

= Support for pig meat sector. In response to the proposals for a new private storage aid scheme for pig meat, Commissioner Hogan will consider the introduction of a new scheme. The details of the scheme, including the timing of its introduction, will have to be confirmed.

= Establishment of a Meat Market Observatory. EU member states recognised and praised the Commission's work in monitoring the market and sharing valuable information on trends. Following the footpaths of the Milk Market Observatory set in 2014, a Meat Market Observatory will be set up, covering beef and pig meat.

= International Trade. In relation to negotiations on TTIP and Mercosur, the Commission is well aware of the agricultural sensitivities. Commissioner Hogan is determined to promote the EU's interests and open up new markets for EU products, while negotiating a differentiated treatment for sensitive products: new markets are crucial for European agriculture, as well as a differentiated treatment of sensitive products.

= Promotion. Promotion campaigns are a key instrument in finding new markets and over €110 million are available for 2016 only to support promotion of EU agricultural produce within the EU and on third countries. Over €30 million are specifically earmarked for the pig meat and dairy sectors, a commitment made last September. An additional amount is added to the €30 million to reflect the market disturbances in those sectors.

= Russian/SPS Bans. The Commission continues efforts to lift the phytosanitary Russian ban. Despite EU efforts to ensure a rapid resumption of trade between the EU and Russia, very little has happened. However, important progress has been made in lifting of unjustified or disproportionate phytosanitary measures by third countries which will contribute to substantially increased trade flows; this includes progress in the US, Japanese, Brazilian and Ukrainian markets.

= Financial instruments/European Investment Bank/European Fund for Strategic Investments. The Commission will prioritise its engagement with the EIB, with a view to developing appropriate financial instruments to assist farmers and processors to invest in their enterprises to improve the competitiveness of those enterprises or to invest in making any necessary structural adjustments.

EU states are also encouraged to make full use of the opportunities offered by the European Fund for Strategic Investment for investment in the agricultural sector and to look into the possibilities of setting up dedicated platforms for EFSI financing.

= Export Credit. The Commission is examining the feasibility of an export credit scheme, which could supplement the schemes which EU states are operating on a national basis scheme. In that regard, the Directorate General for Agriculture is stepping up its contacts with the EIB and the relevant agencies in the member states.

= Fruit & Vegetable Sector. The Commission is considering a prolongation of the exceptional measures for fruit and vegetables, arising from the Russian ban which will expire on 30 June.

= Rural Development. The Commission will work together with the EU states to see where and how rural development programmes can be adjusted to make them more responsive to the current crisis.

More information on the issue:

-  Full speech delivered by Commissioner Hogan at the Council “For more information on the €500 million support package from September 2015”, in Commission’s press release “European Commission activates exceptional measures to further support European farmers in crisis”,

Brussels, 14 March 2016.

Main reference: http://europa.eu/rapid/press-release_IP-16-806_en.htm?locale=en.