Brussels keen to limit EU payments to large farmers

EUOBSERVER / BRUSSELS - The European Commission has indicated its willingness to limit payments to some of Europe\'s largest farmers under upcoming reforms to the bloc\'s common agricultural policy (CAP), a move that could prove controversial in a number of member states.

Launching a public debate on Monday (12 April) on the future shape of the CAP, EU agriculture commissioner Dacian Ciolos said he was willing to take a fresh look at the subject, two years after national governments rejected a similar proposal.

"I will be addressing this problem as part of the debate [on CAP reform] and it\'s something I will put to the council [representing member states] and the European Parliament in due course," Mr Ciolos told journalists in Brussels.

The Romanian politician signaled the move would come as part of wider overhaul of the EU\'s system of direct payment to farmers, with any changes set to kick in from 2014 onwards, once the union\'s current budgetary period (2007-2013) comes to an end.

CAP payments amount to approximately €55 billion a year, more than 40 percent of EU\'s entire annual budget or around €100 a year for each EU citizen, says the agricultural watchdog organisation Farm Subsidy.

While many small-scale farmers rely on the EU funding just to survive, revelations that some large-scale commercial businesses receive annual payments of over €500,000 caused a public outcry last year when details were published on the internet for the first time.

But a commission proposal in late 2007 to limit farm payments to a maximum of €300,000 was not supported by a majority of EU member states, with countries containing large farms such as the UK and Germany raising concerns. A number of smaller restrictions were implemented however.

EU farming umbrella group COPA says it is against any limitations on EU direct aid to farmers, irrespective of farm size. "If farmers deliver public goods [such as land stewardship], then their payments should proportional," the organisation\'s secretary general Pekka Pesonen told EUobsever.

"A payment cap would discourage farmers from increasing the size of their farms, distorting competition and limiting the willingness of farmers to make investments," Mr Pesonen added.

Last week the Dutch liberal VVD party signaled it supported cutting the country\'s EU payments by almost half.