Subsidies for mountain dairy farmers to encourage special interest pleading

Dairy farmers in mountainous regions could get special payments tied to production, under plans being discussed by member states that could set off copycat requests from other sectors.

On Monday (18 February) farm ministers from the EU states will discuss how to support dairy farmers in difficult regions after milk quotas are ended in 2015. In November, the European Commission proposed broadening the scope of current regulations to keep dairy farming in regions where farms would struggle to maintain a minimum level of production. At present farmers in difficult regions can get extra payments from member states if their activities are linked to food quality or environmental protection. Discussions will focus on extending these provisions to preserve dairy production in some regions, especially mountainous regions.

The idea was floated by the Commission as part of its ‘health check’ of the Common Agricultural Policy (CAP). The Commission had said that it would look at further de-coupling (making payments to farmers independent of production) on a case-by-case basis. Another option is to make special payments to dairy farmers using rural development funds, although these are not designed to maintain production.

France, Austria and Finland are among the countries supporting the idea, but even some countries that do not use the existing provisions, such as Germany, have an open view. According to EU sources, other member states are interested in applying these ideas to other sectors. Italy and Spain would like such measures to help tobacco farmers.

Dairy farmers in mountainous regions could get special payments tied to production, under plans being discussed by member states that could set off copycat requests from other sectors.