IP/05/1023
Brussels, 29 July 2005
Drought in Portugal: New agricultural measures
adopted
To alleviate the situation of Portuguese farmers hit by the drought in certain
areas, the European Commission today adopted a Decision authorising
Portugal to advance the payment of a number of premiums and of the Single
Farm Payment for the year 2005. These measures come on top of those
already adopted.
Commenting on the decision, Mariann Fischer Boel, Commissioner for Agriculture
and rural development, said: "I recently visited the drought-affected regions of
Portugal and saw for myself the serious effect the lack of water is having.
Fortunately, the Common Agricultural Policy provides a number of means of helping
countries hit by serious climatic problems. We will do all we can to assist Portuguese
farmers at this difficult time.”
Today's Decision authorises Portugal to pay, as from 16 October 2005, advances up
to 50% of the 2005 sheep and goat premium and of up to 80% (in stead of 60%) of
the suckler cow premium. It also authorises an advance up to 50% of the decoupled
2005 Single Farm Payment to be paid out as from 16 October (instead of 1
December), subject to controls being carried out.
In the last few months, the Commission already adopted several market measures
to assist Portuguese farmers to overcome the problems caused by the exceptional
drought:
- On 4 March the Commission authorised similar increases in the advance
payments for a number of animal premiums for the 2004 calendar year.
- On 7 April, a Decision allowed Portugal to use set-aside land for animal feeding
in five regions affected by the drought. This area was further extended to the
seven other regions of mainland Portugal on 24 June.
- On 15 June 2005, the transfer and sale on the Portuguese market of a first
tranche of 200,000 tons of cereals (80,000 tonnes of common wheat, 80,000
tonnes of maize and 40,000 tonnes of barley) held by the Hungarian
intervention agency was approved.
Portugal may decide to compensate farmers for income losses resulting from these
specific weather conditions through state aid. In this case, the Portuguese
Authorities have to notify the Commission of such state aid.
Up to now Portugal has notified the Commission two different measures:
- Aid N 293/2005 establishing a credit line for supporting the realisation of
hydraulic investments by stock breeders in order to guarantee/improve the
conditions of watering of their livestock in regions affected by the drought.
- Aid N 291/2005 establishing a credit line for supporting the acquisition of animal
feed. The aim is to compensate extensive cattle, sheep and caprine breeding as
well as bee-keepers of certain regions for the additional costs with animal feed
due to the lack of pasture and forage.
These measures are actually being analysed by my services. A decision on their
compatibility with the Treaty will be taken as soon as possible.
The Portuguese Authorities can also make use of the new “de minimis” Regulation.
Aid up to € 3000 per farmer can be granted over a period of three years without
being notified to the Commission, provided that among other conditions the amount
does not exceed € 17,832,000 over a three-year period. Portugal has not made use
of this possibility.
In the context of the current rural development programme for mainland Portugal,
the Commission accepted on 26 April that drought was recognized as force majeure,
thus derogating to conditions normally applicable to certain agro-environmental
measures. As an example, grazing or cutting forage for animal feeding which would
not be permitted under normal circumstances on land under certain agroenvironmental contracts could be authorized.
Rural development policy offers a long-term solution for supporting farmers in
adopting more sustainable production systems through, amongst other measures,
on-farm investments and agro-environmental aid, aiming at stocking water and
making the most rational and efficient use of this natural resource.
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