At the plenary session of the European Parliament, the green light was given this Thursday to the exceptional aid agreed in support of EU farmers who are feeling the impact of the Ukraine conflict on the agricultural sector and rural SMEs involved in processing or marketing agricultural products.
MEP Clara Aguilera, the socialist spokesperson for the Agricultural Committee of the European Parliament, noted that the war has worsened liquidity problems in the primary sector, which was already in a vulnerable state due to rising prices, especially for energy, fertilizers, and animal feed.
The aid, which will be welcomed by many, is intended to alleviate some of the strain facing the sector. It is financed through the European Agricultural Fund for Rural Development (EAFRD) and enables Member States that still have funds available to provide liquidity support to farmers up to 15,000 euros and to agri-food companies up to 100,000 euros.
To distribute the aid, countries with unspent funds in the current programming period can adjust Rural Development Programs to introduce this new measure and select eligible beneficiaries.
Eligible beneficiaries may mobilize up to 5 percent of EAFRD funds for the 2021 and 2022 period.
The measure aims to reach those most affected by the current crisis, with particular emphasis on participants in the circular economy, those involved in food management, efficient resource use, and farming methods that promote environmental and climate-friendly practices.
The measure is expected to come into force from the date of publication, with applications anticipated by the end of March 2023 and payments due by mid-October 2023.