European Union Agricultural Policy Reform Disadvantages Farmers
The European Union’s Common Agricultural Policy is facing a significant challenge as the budget is set to be drastically cut from 2027. This decision will have negative impacts on both producers and consumers, according to Dr. Tibor András Cseh, Secretary General of MAGOSZ and Vice President of the Hungarian Chamber of Agriculture.
Europe boasts the most sustainable agriculture globally; however, the current restrictions on internal border crossing are creating unprecedented challenges for the food production system. The ongoing reform of the Common Agricultural Policy is expected to reduce the quality of production if implemented as planned.
Dr. Cseh highlighted that agricultural subsidies have always been a crucial EU competence, emphasizing the importance of food security. Despite this, the European Commission’s proposal includes a significant reduction in funding, framed as beneficial to European farmers.
Furthermore, concerns were raised about the lack of representation from Central and Eastern European farmers in key agricultural decisions. The proposed changes aim to eliminate area payments for most farmers, while enforcing strict green standards and promoting a shift towards plant-based foods.
The potential inclusion of Ukraine in the EU poses additional challenges for European farmers, with mass bankruptcies predicted if adequate support is not provided. The reduction in subsidies could lead to increased food prices, prompting consumers to turn to cheaper, lower quality imports from third countries.
Hungarian farmers, already grappling with market challenges and rising production costs, rely heavily on subsidies for support. Any alteration to the current support system could have severe consequences, impacting the livelihoods of many.
As European production declines, imports from third countries, particularly Ukraine, are on the rise. The dumping of Ukrainian products poses a threat to the EU’s agri-food economy, underscoring the need for fair trade practices and food safety regulations.
In conclusion, Dr. Cseh stressed the importance of maintaining strategic autonomy in food production to safeguard the interests of both farmers and consumers. The future of European agriculture hinges on finding a balance between sustainability, support for farmers, and market dynamics.
