3 May 2024

2 minute read

By: Global Ag Media

The European Union will extend subsidy allowances by six months until the end of 2024 to support the region's agricultural sector following protests from farmers seeking better pay and working conditions, reported Reuters.

Farmers across Europe have demonstrated against increasing regulation placed upon them by the EU's green agenda, which they say has driven up costs, as well as what they see as unfair competition from foreign imports, particularly from Ukraine.

The European Commission said on Thursday that its decision to extend the 'Temporary Crisis and Transition Framework' (TCTF), which also applies to the fishing sector, means member states have more leeway to offer financial support until December 31.

The looser rules to help farmers and fishermen were initially adopted in March 2022 after Russia's invasion of Ukraine, and they have been extended and tweaked since then.

EU members will be able to provide up to 280,000 euros ($299,040) per firm for agricultural companies affected by market disturbance, including sanctions, and up to 335,000 euros in the fisheries sector.

EU antitrust chief Margrethe Vestager said the Commission was acting quickly to provide necessary support to a sector still facing challenges from market disturbances due to Russia's war in Ukraine.

The Commission said it would also review the maximum support level for which states do not have to notify the Commission for approval. A number of EU members have called for this to rise to 50,000 euros from 20,000 euros now.

($1 = 0.9363 euros)