28 April 1995

Report calls for 1% support rise

A 1% INCREASE in farm support prices has been demanded in a new report presented to the European Parliament.

The report, presented by Belgian Socialist MEP Jose Happart, rejects the commissions proposed cuts in the grain and dairy sectors. Mr Happart, whose report is due to be adopted by Euro MPs, argued that last years rise in farm incomes owed more to luck than design.

His view is backed by the European farmers organisation COPA. The report also opposes the suggested shortening of the cereal intervention period from seven months to five months and a 10% cut in storage aid. Such cuts would weaken price support by 2.5% and create instability in EU cereal markets, it argues.

COPA says the Commissions proposed 2% cut in the butter intervention price is unwarranted, because of stable dairy markets, low intervention stocks and unchanged levels of butterfat. &#42