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European agricultural policy milestone: €390 billion in subsidies for climate-friendly farmers

2021-06-08

Bloomberg Green reported that EU governments reached a preliminary agreement in Luxembourg early on the 21st, requiring farmers to improve the environmental standards of their operations to qualify for agricultural subsidies totaling hundreds of billions of euros. According to the conclusions of the marathon agriculture ministers' meeting, any farmer deemed to be undermining the achievement of EU climate goals will be denied subsidies, with 20% of direct payments reserved for organic farming and other climate-friendly agricultural practices, such as soil carbon sequestration. https://live.staticflickr.com/4339/36716846815_30fd2427be_b.jpg EU governments reached a preliminary agreement in Luxembourg early on the 21st, requiring farmers to improve the environmental standards of their operations to qualify for agricultural subsidies. Photo credit: Jacopo (CC BY 2.0) The EU statement stated: "Farmers must adopt climate- and environment-friendly practices to receive financial support... All farmers, including smallholders, must adhere to higher environmental standards." German Agriculture Minister Julia Klöckner called the agreement a "milestone in European agricultural policy," paving the way for negotiations with the European Parliament before the final terms come into effect next year. The EU aims to include agriculture in its "Green Deal" to achieve its goal of net-zero emissions by 2050. EU member states will decide in December whether to adopt a more aggressive transition target of reducing carbon emissions to 55% below 1990 levels by 2030. Achieving this goal will require sweeping regulatory reforms across all sectors of the European economy, from transport to construction. A raft of legislative and legislative proposals are expected in the coming months, including stricter vehicle emissions caps and building energy efficiency standards. Over the next seven years, EU farmers will receive approximately €390 billion in subsidies, the largest portion of the EU's co-financed budget. Of this, €291 billion will be paid in the form of regular direct payments. Reference: Bloomberg Green (October 21, 2020), EU Wields $460 Billion of Aid to Enlist Farmers in Climate Fight

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