France moves forward with an agricultural support plan of more than 1,000 ME

“ ANDthis plan sends a very strong political message because “more than EUR 1 billion in the current budgetary context represents massive support,” said Genevard at a press conference, referring to the pressure that the country is under due to the public deficit and debt interest rates at the highest level since 2008.

The responsible explained that, in the case of some crops or territories, “some productions have fallen by more than 50% due to drought and heat and estimated that there are between 30,000 and 35,000 farms, about 10%, that are “in a situation of fragility or in danger”.

The plan is based on two pillars: the first is to cover losses through the National Solidarity Compensation, a mechanism that will cover “exceptional losses” and will initially have a package of EUR 520 million “to cope with the direct consequences related to drought”.

The Minister explained that she asked the State services for speedy management of these compensations and stressed that the mechanism was changed to reach 80% of the advance payments compared to 70% above.

Another measure to alleviate the financial situation of farmers will be the total exemption from rural tax of EUR 330 million.

There will also be a reduction of EUR 20 million in social contributions from those in great difficulty.

The second pillar of the programme will consist of “relaunching agricultural production”, so that farms do not stop sowing and do not reduce the number of livestock, because “the agricultural sovereignty and the maintenance of the entire economic chain are at stake.”.

Genevard indicated that, for this purpose, “an agricultural restructuring fund” with EUR 235 million will be created.

Although it is not new funds, the payment of EUR 426 million of the common agricultural policy (CAP) will still be anticipated.

The French minister said that she wrote to all the counterparts of the European Union (EU) asking which countries could make fodder available to French cattle farmers who failed to harvest this year due to drought and who received a reply of three, without specifying which.

“ Let’s see how European solidarity is organized,” he said.

It also pointed out that, from 2027 onwards, compensation for losses will be calculated on the basis of the average over the last eight years, not the last five as it has so far, after negotiating this measure with the European Commission.

Asked about the financing of the plan, Genevard said that some items have been frozen and that next year, “there will be efforts in all budgets”, even if the losses in agriculture are very significant.

In addition, the deadline for requesting aid for the purchase of fertilizers, made available due to the increase in the prices caused by the war in the Middle East, will be extended from the end of September until 31 December.