Farm minister: Fast action needed to ease cashflow crisis

Defra minister George Eustice has called for the swift implementation of support measures from Brussels to help farmers battling cashflow problems.

Mr Eustice was speaking ahead of a two-day informal farm council meeting of European agriculture ministers in Luxembourg on Monday and Tuesday (14-15 September).

It follows the announcement of a €500m (£367m) support package announced by the European Commission for farmers across all 28 EU member states last Monday (7 September).

See also: Farm ministers in talks over €500m support package

Mr Eustice said: “We want to see the commission move quickly to introduce the support measures they announced last week to help the many farmers suffering cashflow problems.

“We are still waiting for details about the aid scheme, which needs to be distributed fairly among member states and available quickly to help those most in need.”

In addition to the aid package, Brussels has unveiled proposals that will allow member states to start making partial basic payments to farmers six weeks early this year.

Brussels says member states can pay up to 70% of direct payments from 16 October, rather from than the usual start date of 1 December.

The commission says payments can be made early provided that member states adhere to all the necessary controls regarding their administration.

Defra has ruled out making partial payments, arguing that doing so would be overly complicated and risk farmers having to wait longer for the rest of their money.

“I will also be continuing to push the commission to relax controls around the basic payment scheme so that more farmers can be promptly paid”
George Eustice, farm minister

Instead, it wants Brussels to relax administrative rules so Defra can make full payments to more farmers soon after the regular 1 December start date.

Mr Eustice said: “I will also be continuing to push the commission to relax controls around the basic payment scheme so that more farmers can be promptly paid.”

Brussels should also speed up other measures, added Mr Eustice.

“A futures market for dairy is something we have long argued would benefit the dairy sector,” he said.

“Now that the commission is introducing a high-level group to take this forward, we need a commitment they will make rapid progress.

“Improving transparency and fairness in the supply chain is a priority for the UK and I am happy to share more information on our Groceries Code Adjudicator for a potential EU-wide approach.

“I will also continue to push for further action from the commission on country-of-origin labelling, which would help consumers know when they are buying quality British produce.”