Cereals to pick up BSE cost?
26 January 2001
Cereals to pick up BSE cost?
By FWi staff
CEREAL growers may pick up the cost of safety tests to control BSE on the Continent, reports the BBC Radio 4 Farming Today programme.
As the disease continues to spread, the cost of safety controls and testing is getting close to busting the EU farming budget.
There is 800 million-worth of flexibility this year to deal to cope with the surplus of beef in the EU caused by the drop in consumption and exports.
Now farm commissioner Franz Fischler is considering taking the money from subsidies.
EU specialist Roger Waite of newsletter AgraFactssaid Mr Fischler has hinted that the cash could come from the arable sector.
The commissioner questioned this week whether it was correct that 45% of the budget goes to cereals, which employs far fewer people than other sectors.
Mr Waite thought if the budget squeeze continues there will be increased political pressure to reduce arable aid.
He predicted in the short-term this was most likely to take the form of reduced export refunds.
But a review of the Common Agricultural Policy next year could lead to more substantial reforms.