European Commissioner for Agriculture Phil Hogan accepted that the crisis in farm incomes has been “much longer and deeper” than he had anticipated and that it will stay that way for some time.
In an address to the European Parliament on Monday night, Mr Hogan described the current situation as “long-lasting and profound”.
The meeting of the MEPs in Strasbourg was called by Mr Hogan to get their input on the topic of farm incomes.
Refusal to intervene
In attendance was Fine Gael MEP Seán Kelly, who said that “given that farmers work to produce product to sell, there is a growing need to sell more internationally."
Speaking to the Irish Farmers Journal, Mr Kelly described the meeting as “worthwhile”.
“There were a clear message on just how difficult the situation is for farmers right across Europe. There was a definite desire to introduce every instrument possible to help farmers right out to 2020 and not just for this year,” Kelly said.
@PhilHoganEU looking for temporary exemption from tariffs on fertiliser imports worth €14/tonne @EP_Agriculture
— Mairead McGuinness (@MaireadMcGMEP) March 7, 2016
The stance from the EU commissioner on intervention remained the same. He refused on intervention, claiming that it would only “encourage production" as it would as it would provide another outlet for the people who want to produce more.
With regards to Russia, he said it was difficult to end the embargo, as the agricultural minister is still “blacklisted” and not allowed to travel within the EU.
Crisis aid packages
He also encouraged farmers to make use of the European Investment Bank and Juncker plan to help alleviate debt and help with debt restructuring, confirming that discussions with them have been ongoing for some time.
“These are issues we are not making the best of. I do think the European bank will have to help us. They are our bank but they are a very cautious bank.
“They’re more concerned sometimes about their risk rating than they are about dealing with a very serious problem that we have now in agriculture so we have to unlock potential here for debt restructuring as well as for working capital for farmers to tide them over these very difficult times.”
Over supply in the dairy sector
Speaking about the dairy sector, Mr Hogan said he was willing to look at regulating supply and evoking article 222 of dairy markets regulation.
He also confirmed that a voluntary arrangement is being considered “which would help cover about 15% to 20% of the total milk production, but it won’t cover everybody. It’s a voluntary arrangement so therefore will it stop member states that are actually over supplying to the extent of others at the moment.”
The lack of competition in the fertiliser market was brought up at the meeting and the EU commissioner confirmed that he had also been in talks for a temporary suspension on the import tariffs on fertiliser prices in order to generate more competition.
“This would have an immediate impact on input costs for farmers within the region of €14 per tonne and that’s a significant reduction if that can be achieved,” said Mr Hogan.
Minute of silence for farmers who committed suicide
A minute of silence was held on Monday evening for all farmers who committed suicide due to their dire situation arising from the ongoing crisis on agriculture markets.
The EU Commission must act right now, they told Mr Hogan, to help EU farmers cope with falling prices for their produce "using all available tools." They insisted that the Commission should not shy away from proposing new ones, even if it entails legislative changes.
"There is something very rotten in our society today if those who produce food are so desperate on their farms that they are committing suicide. We do have to ask ourselves what state we are in that we have to eat food three times a day and those who produce it are so desperate," said MEP Mairead McGuinness.
SHARING OPTIONS: