EC Seeks To Make Farm Subsidy Payments More Equitable, But Also “Greener”

Hoping to update and make more fair its Common Agricultural Policy (CAP) of subsidies for farmers, the European Commission has proposed a restructuring plan. The proposal calls for increasing subsidies to smaller East European farmers, but linking payments to environmental and food security goals. The EU several Central and East European countries in 2004, but the subsidy amounts are calculated based on production volumes of EU members in 2000-2002. Payments between old and new member states vary from €500 per hectare in Greece to less than €100 in Latvia. Debate on the new plan will start next July when the Commission proposes its budget for 2014-2020. The Commission said its other major priority is to promote the diversity of European agriculture with a rural policy that features "a green component".