UK farmers allocated €36 million in direct aid

Published 15 September 15

The Commission has agreed an allocation of the €420 million in targeted aid to relieve cash flow difficulties for dairyand pig farmers, which will see €36.1 million allocated to the UK. The majority of the funds were distributed on the basis of quota allocations in the last quota year. It will be up to national governments to decide how these funds will be distributed to their farmers.

The Commission has also agreed to consider requests by Member States to supplement the direct aid with national measures. However, those Member States who wish to do so will be required to agree the level and type of support with the Commission.

Other measures agreed by the Commission include two new PSA schemes and the ability for governments to make advance payments of up to 70% from 16 October, subject to the completion of administrative controls.

Under the new PSA schemes, the aid rate for SMP storage has been increased by over 100% to 36c/tonne/day and the storage period will be fixed for a year. This is an extension to the current storage period allowance of 3-7 months. The PSA scheme for cheese will provide for a total amount of 100,000 tonnes, allocated on the basis of each country’s relative cheese production, giving the UK the ability to put around 4,600 tonnes of cheese into PSA. It has been proposed that any unused allocations will be made available for redistribution after three months to those Member States who want to make greater use of the scheme.

These proposals will be presented to the Council on Thursday (17 September) for agreement.

UPDATED 16.09.15