'Unthinkable': Farmers unhappy as EU proposes 5 percent CAP reduction

The European Commission has proposed a 5% cut to CAP, seeing a budget of €365b
The European Commission has proposed a 5% cut to CAP, seeing a budget of €365b

The European Commission has proposed a 5 percent reduction in Common Agricultural Policy funding in its first multi-year budget after Brexit.

The Commission has examined where savings can be made and efficiency improved as the UK's exit from the EU leaves a hole in its finances, of up to €15bn per year.

The Commission is proposing that funding for the Common Agricultural Policy (CAP) is reduced - by around 5% - to reflect the "new reality of a Union at 27".

The CAP will, however, be modernised to ensure it can still deliver with less and even serve new priorities.

Farm subsidies are to be better balanced, benefiting medium-sized and smaller farms. The Commission has also proposed a subsidy cap per farm.

“The overall cut in the CAP budget is 5 percent and I regard this as a fair outcome to farmers, particularly given the challenging backdrop of a 12 billion euros Brexit,” European Commissioner for Agriculture and Rural Development Phil Hogan told reporters.

'Unthinkable'

France, an agricultural powerhouse and the largest beneficiary of the CAP, has swiftly condemned the new measures, calling it "unthinkable".

“For Stephane Travert, the Agriculture and Food Minister, such a drastic, massive and blind cut is simply unthinkable,” the ministry said in a statement.

“It poses an unprecedented risk to farms’ viability by seriously impacting farmers’ incomes, for whom direct aid is an essential safety net. France cannot accept any decline in direct income for farmers.”

EU agricultural co-operative Copa and Cogeca reacted with "strong disappointment" to the cuts.

“A strong budget is needed for a sustainable, modern EU agriculture sector delivering on various fronts,” the group said.