Farmers could receive up to €7,000 in aid from European Union funds after the European Council adopted a special regulation permitting states to apply for compensation funds in this area, former PN MEP candidate Peter Agius told The Malta Independent.
On 24 June, the European Council adopted a regulation which allows member states, as an exceptional measure, to pay up to €7,000 to farmers and up to €50,000 to small and medium enterprises (SME's) active in processing, marketing or development of agricultural products or cotton, except fishery products.
“The aim is to make use of available funds under existing rural development programmes to provide support to farmers and SME's worst-hit by the COVID-19 crisis and to address the liquidity and cash-flow problems stemming from the closures of shops, markets and restaurants”, the Council said in a statement.
This means that member states – including Malta – can identify beneficiaries for such aid dependent on a selection of criteria such as the sector of the recipient, the type of activity, the number of people they employ, and the structures they have in place.
The Council said that the support should be limited to a maximum 2% of the total contribution to the rural development programmes from the European agricultural fund for rural development (EAFRD).
The payments are to be made by 30 June 2021, based on applications for support approved by 31 December 2020, the Council said.
"Living in an island we should not underestimate the importance of food security. It is not wise to rely completely on foreign imports for all our food. That is why we should ensure to apply EU rules in a way to sustain local produce and empower it to compete with imported products”, Agius told this newsroom
“This new EU decision is an opportunity not to be missed. My analysis is that Government may deploy around €2.6million in EU money in aid to farmers most affected by the Covid-19 downturn by compensating their losses”, he said.
“In my view, this amount should be doubled with national budget to widen the effect of this compensation”, he added.
Farmers have struggled as a result of the pandemic, with the potato crop for instance, falling victim especially to restrictions on exportation because of the pandemic and to the closure of restaurants and hotels to whom they supplied ingredients.
The government as a result bought 500 tonnes of potatoes from farmers to be shipped to Namibia to help with a food crisis in the African country. The government paid €187,200 for the potatoes, of which €140,400 was allocated to local farmers.
However, this has only been a small drop in the ocean, with many farmers still struggling.
Under the aid, some 370 farmers can receive up to €7,000 in aid, which equates to just under €2.6 million. The government can also choose to put in a part contribution and extend the scheme to hundreds of others, including part-timers with an active sales record.