EU Cuts Farm Subsidies by 22% Amidst Farmer Backlash

The European Commission has announced a significant reduction in funding for the EU’s Common Agricultural Policy (CAP), cutting the budget from €386.6 billion to €300 billion after 2027. This decision, revealed by Commission President Ursula von der Leyen, represents a decrease of over 20 percent, igniting fierce opposition from farmers who view the move as a betrayal of the agricultural sector.

During a press conference on March 6, 2024, von der Leyen defended the budget cuts, asserting that farmers would not face losses. She emphasized the continued availability of funding for rural communities through other programs. “Agriculture will be strengthened. What we have safeguarded are the direct payments to farmers,” she stated, aiming to reassure stakeholders.

In response to the cuts, Agriculture Commissioner Christophe Hansen attempted to clarify the implications of the new budget. He argued that, despite the headline figures, there would be no reduction in the amount reaching farmers, as the missing funds would be accounted for in other parts of the budget. “The €300 billion figure is not a ceiling but a floor,” he explained to the European Parliament, assuring members that the funds would be legally protected from being redirected to other priorities, such as defense.

Despite these assurances, the mood among farmers remains hostile. While Hansen spoke inside the Parliament, hundreds of farmers rallied outside the EU institutions in Brussels, expressing their discontent with banners and chants, including the slogan “Welcome to Vonderland,” a critique directed at von der Leyen. Massimiliano Giansanti, head of Copa, the influential EU farming lobby, condemned the cuts as a “declaration of war” on farmers, emphasizing the historical significance of the CAP since its inception post-World War II.

The core of the controversy lies in the details of the budget. Hansen indicated that not all of the current CAP funding directly supports farmers; approximately €291.1 billion is allocated for income and sectoral support, while €95.5 billion is designated for rural development programs. Critics argue that many farmers still rely heavily on this rural development funding for various forms of support, including investments in environmentally sustainable practices.

Copa-Cogeca, representing major farmers’ and agricultural cooperatives, condemned the day as a “Black Wednesday for European agriculture,” accusing the Commission of implementing “radical, unilateral and cynical” cuts while neglecting meaningful dialogue with farmers. They stressed that family farms, which are vital to the agricultural model, would bear the brunt of these reductions.

In Parliament, lawmakers across the political spectrum voiced their concerns. Herbert Dorfmann, a member of the center-right European People’s Party, criticized the framing of the budget cuts as a success. “Don’t try and sell us a 25 percent CAP cut as a success story,” he remarked. Fellow member Dario Nardella from the Socialists and Democrats questioned the logic of presenting €300 billion as an improvement over €386 billion.

Hansen maintained that EU member states could supplement their national farm budgets, but skepticism surrounds the likelihood of cash-strapped governments providing additional funds. “They’ve got us tied down,” lamented a farmer from Toledo, who wished to remain anonymous. “I wish we could survive without subsidies, but we need them. The Spanish countryside and European agriculture are being ruined from here.”

As the protests concluded, the debate over the EU’s agricultural budget is set to continue, with farmers and policymakers bracing for a contentious discussion in the months ahead. The implications of these budget cuts are likely to resonate deeply within the agricultural community and beyond, influencing both policy and farming practices across Europe.