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CAP payment limits would hit 0.3 per cent of farms  20 Nov 2007

posted by Jack Thurston

Analysis of the Commission's proposals for limiting the subsidies paid to Europe's very largest farms shows that 23,500 farms would be affected, though most of them only at the 10 per cent reduction rate.

 

The payment limitations proposal published today would involve three bands:

1. Payments between €100,000 and €200,000 would be subject to a 10 per cent reduction. This would affect 17,460 farms.

2. Payments between €200,000 and €300,000 would be subject to a 25 per cent reduction. This would affect 3,070 farms

3. Payments above €300,000 would be subject to a 45 per cent reduction. This would affect 2,790 farms.

 

Taken together, these payment limitations would affect 23,500 recipients of farm payments (around 0.3 per cent all farms). The amount of subsidy cut would be €554 million (around 1.7 per cent of the budget for direct payments).

 

By contrast, the failed Franz Fischler proposal of a hard ceiling of €300,000 would have affected 2,795 recipients and would have cut payments by €750 million (2.3 per cent of the total amount spent on direct payments to farmers).

 

The Commission’s current proposals fall hardest on Germany, which has a large number of very large farms in the areas of former East Germany, where agriculture was collectivised under Communist rule. 5,310 German farms would be affected (1.6 per cent of the total) and total subsidies would be cut by €270 million (5.4 per cent). Other countries that would be impacted most heavily are the Netherlands, the United Kingdom, Italy and Spain. See table below.

 


Country Recipients affected Percentage Savings (€millions) Percentage
Belgium 95 0.2% <1 0.1%
Czech Rep 540 2.9% 4.4 2.1%
Denmark 680 1.3% 14.4 1.6%
Germany 5310 1.6% 269.9 5.4%
Estonia 10 <0.1% <1 <0.1%
Greece 50 <0.1% 1.0 <0.1%
Spain 2720 0.3% 55.7 1.2%
France 3560 0.8% 16.4 0.2%
Ireland 310 0.2% 1.6 0.1%
Italy 2290 0.2% 62.5 1.7%
Cyprus 0      
Latvia 0      
Lithuania 10 <0.1% <1 <0.1%
Luxembourg 0      
Hungary 380 0.2% 5.0 1.6%
Malta 0      
Netherlands 140 0.1% 23.5 4.3%
Austria 60 <0.1% 3.4 0.5%
Poland 100 <0.1% 2.3 0.3%
Portugal 590 0.3% 6.0 1.1%
Slovenia 0      
Slovakia 170 1.4% 1.4 1.7%
Finland 20 <0.1% <1 <0.1%
Sweden 370 0.6% 6.6 1.1%
UK 6100 3.8% 78.5 2.3%
EU-25 23500 0.32% 554.3 1.71%

Farmsubsidy.org calculations by Jack Thurston based on European Commission’s indicative figures on the distribution of farm payments.

Recent comments

Best solution would be to stop the Common Agricultural Policy totally.
Then European taxpayers would save 100%.

The Court of Auditors have never signed of on the CAP budget.

Farmer lobby groups insist that there is to be no limit set on payments.

EU taxpayers,
please input the following words in google

www.google.com

"sws polish property farmers journal"

this is where your taxes go

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