Exceptional temporary support under the European Agricultural Fund for Rural Development (EAFRD) in response to the impact of Russia’s invasion of Ukraine

The European Parliament adopted by 508 votes to 72, with 10 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1305/2013 as regards a specific measure to provide exceptional temporary support under the European Agricultural Fund for Rural Development (EAFRD) in response to the impact of Russia’s invasion of Ukraine.

Parliament adopted its position at first reading under the ordinary legislative procedure, taking over the Commission's proposal.

The objective of the proposed regulation is to remedy the exceptional situation in the EU's agricultural and food sectors caused by the consequences of the Russian invasion of Ukraine.

In order to deal with the consequences of the Russian invasion of Ukraine, the regulation provides for a new exceptional and temporary measure to address the liquidity problems that put at risk the continuity of farming activities and of small businesses that process agricultural products.

The amendment to Regulation (EU) No 1305/2013 of the European Parliament and of the Council introduces an additional measure, financed by the European Agricultural Fund for Rural Development (EAFRD), which will allow Member States to provide liquidity support to farmers and agri-food businesses affected by significant increases in input costs, in particular to feed and fertiliser undertakings as well as energy-intensive undertakings in the processing industry which experience increased gas and electricity costs.

The support, which aims to secure competitiveness of agri-food businesses and farm viability in the EU, should be granted on the basis of objective and non-discriminatory criteria. The support provided by the Member States should contribute to food security or address market imbalances and shall support farmers or SMEs engaging in one or more of the following activities pursuing those goals:

(a) circular economy;

(b) nutrient management;

(c) efficient use of resources;

(d) environmental and climate friendly production methods

The support should take the form of a lump sum payment to be paid by 15 October 2023 at the latest, on the basis of applications for support approved by the competent authority by 31 March 2023 at the latest. The maximum amount of support should not exceed EUR 15 000 per farmer and EUR 100 000 per SME.

The EAFRD support should not exceed 5% of the total EAFRD contribution to the rural development programme for the years 2021-2022.