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| Version 3 | Version 4 |
|---|---|
| EU reaches deal on farm reforms | EU reaches deal on farm reforms |
| (about 1 hour later) | |
| EU farm ministers have agreed to reform agricultural policy by shifting more subsidies away from production and liberalising the dairy market. | EU farm ministers have agreed to reform agricultural policy by shifting more subsidies away from production and liberalising the dairy market. |
| The deal on reforming the Common Agricultural Policy came on Thursday after protracted late-night talks. | The deal on reforming the Common Agricultural Policy came on Thursday after protracted late-night talks. |
| More subsidies will be transferred to conservation rather than providing a safety net linked to farm production. | More subsidies will be transferred to conservation rather than providing a safety net linked to farm production. |
| Milk quotas will be raised in the short term, but later scrapped. The measures will go into effect during 2009-2013. | Milk quotas will be raised in the short term, but later scrapped. The measures will go into effect during 2009-2013. |
| The changes build on a major CAP reform enacted in 2003. The latest deal was reached by a qualified majority vote - it was not unanimous agreement, officials say. | The changes build on a major CAP reform enacted in 2003. The latest deal was reached by a qualified majority vote - it was not unanimous agreement, officials say. |
| The aim is to shift more funding into rural development and conservation measures, and away from the traditional incentives for farmers to produce. | The aim is to shift more funding into rural development and conservation measures, and away from the traditional incentives for farmers to produce. |
| The CAP is the biggest item of EU expenditure, accounting for about 45% of the EU's budget. | |
| Arguments about milk | |
| All farms qualifying for a minimum of 5,000 euros (£4,208; $6,312) in annual EU subsidies will shift 5% of their EU money into rural development projects by 2012, on top of the 5% that is currently obligatory. | All farms qualifying for a minimum of 5,000 euros (£4,208; $6,312) in annual EU subsidies will shift 5% of their EU money into rural development projects by 2012, on top of the 5% that is currently obligatory. |
| So direct aid for rural development will rise to 10% of the EU farm subsidies - not the 13% that the European Commission wanted. | |
| Reform of milk quotas has long been a thorny issue, with France and Germany especially voicing concerns about the plan to remove them altogether in 2015. | |
| Speaking before the deal was reached, French Agriculture Minister Michel Barnier said he would "not allow the milk quotas to be scrapped without accompanying measures, precautions being taken". | Speaking before the deal was reached, French Agriculture Minister Michel Barnier said he would "not allow the milk quotas to be scrapped without accompanying measures, precautions being taken". |
| "Some would like to lift all restrictions on milk production. We know perfectly well that if we produce a lot more, the prices drop, and everyone loses." | "Some would like to lift all restrictions on milk production. We know perfectly well that if we produce a lot more, the prices drop, and everyone loses." |
| In order to cushion the blow to dairy farms the milk quotas will rise by 1% a year from 2009, before they expire in 2015. | |
| Italy, which has overshot its milk quotas, will be allowed to implement the full quota increase from next year. | |
| Meanwhile, extra support is planned for small dairy farms in mountain areas, notably in France, Germany and Austria. | |
| EU Agriculture Commissioner Mariann Fischer Boel said the negotiations had been tough and the talks on milk quotas had been "extremely difficult", the AFP news agency reported. | |
| EU governments co-finance environmental subsidies for farms with the European Commission, and under the new deal, the governments' contribution will be 25% - down from 50%. But the poorest countries' contributions will be cut to 10%, AFP reports. |