The European Commission announced on 27 November a compensation of €467 million to European farmers. The money was dedicated to this year’s agricultural crisis reserve. It was originally deducted from the 2019 budget for farmers’ support under the common agricultural policy.
The crisis reserve mechanism was first applied in 2014. This summer, additional measures were used to help farmers affected by extreme weather, and the crisis reserve for 2019 was not needed.
The EU provides farmers with income support or “direct payments” based on their farm’s size in hectares. The decision means that the amounts deducted from direct payments this year may be reimbursed to farmers by member states as from 1 December.