The European Commission has put forth a proposal to allocate €574,000 in funds as part of a comprehensive package totaling €330 million, aimed at supporting farmers throughout the EU who have been affected by adverse climatic events, high input costs, and various market and trade-related challenges.

Announced on Monday, the support package is designed to provide exceptional assistance to 22 Member States, including Cyprus, by utilizing the Common Agricultural Policy budget. Belgium, Czechia, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Austria, Portugal, Slovenia, Finland, and Sweden will also benefit from this initiative.

Specifically, Cyprus will receive €574,358 in support. Member states have the option to complement this EU support with national funds, up to 200%, as stated in the press release accompanying the measure.

The Commission has received assessments from Member States regarding the difficulties faced by their respective agricultural sectors. The proposal will be subject to a vote by Member States during the next committee meeting for the common organization of agricultural markets.

National authorities will directly distribute aid to farmers to compensate for economic losses caused by market disruptions, high input prices, declining agricultural product prices, and, where applicable, damage resulting from recent climate events, particularly severe in the Iberian Peninsula and Italy. The aid can also be utilized for wine distillation to prevent further deterioration of the sector.

Payments for both the proposed support package and an additional approved package (excluding Cyprus) must be made by December 31, 2023. The Member States covered by these measures will be required to inform the Commission about the implementation details, including the criteria used to calculate the aid, the expected impact of the measure, the evaluation process, and actions taken to prevent competition distortion and overcompensation.

In addition to direct financial support, the Commission is suggesting an increase in advance payments of CAP funds. Farmers may be eligible to receive up to 70% of their direct payments and 85% of rural development payments related to area and animals by mid-October, improving their cash-flow situation. Member States will also have the opportunity to adjust their CAP Strategic Plans to redirect funds toward investments aimed at restoring production capabilities following crop losses, loss of livestock, and damage to buildings, machinery, and infrastructure caused by adverse climate events.