Farmers’ protest: How the EU promotes agriculture

Many farmers find it easy to swear at “Brussels” – despite the fact that donations to agriculture make up almost a third of the EU budget. Where the money goes and according to what criteria it is distributed.

Europe’s farmers benefit from enormous subsidies: almost one in three euros from the multi-year EU budget goes to agriculture, a total of 387 billion euros over seven years. This is the second largest item in the Community budget. Germany accounts for six billion of this per year. The majority goes to farmers as direct payments. Even after the most recent EU agricultural reform, the amount is based on the size of the farm and is hardly subject to any conditions. Large companies, which are often better off than the average anyway, get more.

German farmers do not receive the money directly from Brussels. Instead, the federal government sets the area premium, which is then transferred by the federal states’ paying agencies. Last year, an average of 156 euros per hectare was paid out. There are also special payments for small businesses or young farmers as well as so-called coupled premiums for suckler cows, sheep and goats.

It’s not just farmers who get money

Because food prices in Germany are low compared to those in the EU, farmers need direct payments to secure their income. But insurance, energy and real estate companies as well as furniture stores also collect area bonuses when they own and manage farmland. A quarter of this funding is reserved for environmental programs. Participation is voluntary; each member state determines the conditions itself.

In Germany, for example, farmers can create flowering areas and strips of old grass or forgo pesticides in order to get additional money. Last year, almost 40 percent of the budget for these so-called eco-rules was not used; the federal government invested the corresponding funds in existing measures.

Big countries get the most money

Because the majority of funds are allocated based on the available agricultural land, the large EU member states receive the most money from the agricultural pot: France is at the top, followed by Spain, Germany, Italy and Poland. However, this says nothing about how high the subsidies are per hectare or farm. These depend on the operating structure and the funding policy of the respective country. In terms of support provided per hectare, Malta, Cyprus and Greece are at the forefront.

Romania has the most people employed in agriculture in the EU; a total of 9.5 million people in the European Union work in this sector. The agricultural sector’s share of gross domestic product was 1.3 percent in 2020. Area funding was introduced in the Community in the early 1990s. Previously, Europe’s farmers had received price compensation payments because they could not compete with the world market due to high costs. However, these state-guaranteed prices had led to overproduction – to the infamous milk lakes and mountains of butter.

Compatible with the Green Deal?

According to critics, the requirements of the Green Deal, the planned sustainable restructuring of Europe’s economy and society, are not reflected in the common agricultural policy. The fact that the EU wants to become climate neutral, drastically restrict the use of agricultural poisons and preserve biodiversity and landscapes – these goals are not anchored in the agricultural reform. Agriculture is responsible for a tenth of EU-wide emissions of climate-damaging greenhouse gases.