The real value of the CAP “has fallen by 30% due to inflation”


European farmers have once again made their voices heard in Brussels. Nearly a thousand tractors gathered in the European district, causing scuffles. They are demanding additional means to make a living from their productions.

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Scenes of near-battle took place again in Brussels with farmers and the police as protagonists. Approximately a thousand tractors returned to the European Quarter.

The demonstrators burned tires and trash cans to attract the attention of EU agriculture ministers who were meeting at the same time a few dozen meters away. Farmers denounce their low incomes, excessive bureaucracy and the inefficient use of European subsidies.

Euronews interviewed João Pacheco, researcher at the Farm Europe think tank, about the situation in the European agricultural sector.

Euronews :

What measures are possible in the short and medium term for farmers?

João Pacheco :

I think they’re right, because their income has gone down. It’s absolutely incredible. If you look at what has happened over the last 20 years, incomes have fallen by double digits in most member states. So I think it’s important to do two things. The first is to increase demand for their products in Europe. And they must meet increased demand, mainly in the bioeconomy sector. Second, there are a number of practices in the marketing chain that do not take into account that farmers are individuals. There are millions of farmers per country, but three or maximum five large supermarket chains which have extraordinary market power.

Euronews :

Common Agricultural Policy (CAP) funds are accused of benefiting large agri-food companies. Is a reform possible to adjust this situation?

João Pacheco :

The problem is that the real value of Common Agricultural Policy subsidies has fallen by 30% due to inflation. It has not been adjusted for inflation. In real terms, farmers therefore receive less subsidies while Europe asks them to do more in terms of environmental protection, standards, etc. The problem in Europe is that there are a very large number of small and very small farms, which unfortunately are not profitable and never will be.

Euronews :

The EU launched this strategy, “Farm to Fork”, but it has always been highly contested. For what ?

João Pacheco :

The SURE Pesticides Act was proposed, then withdrawn by the Commission. There was to be a 50% reduction in pesticide use, regardless of whether there were alternatives. Another proposal on the theme “From Farm to Fork” was to reduce the use of chemical fertilizers by 20%. The largest universities, the US Department of Agriculture, came to the conclusion that this would reduce production in Europe by 15-20%. The solution would be, in my opinion, to produce more in Europe but in a more sustainable way. And the answer is better technology. We can reduce the use of pesticides, fertilizers, etc., per unit of production.

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