EU raises crisis aid ceiling for farmers

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GROSSDERSCHAU, GERMANY - AUGUST 14: In this aerial view combines harvest summer wheat at a cooperative farm on August 14, 2015 near Grossderschau, Germany. The German Farmers' Association (Deutscher Bauernverband) is due to announce annual grain harvest results this week. Some farmers have reported a disappointing harvest due to the dry weather in recent months. (Photo by Sean Gallup/Getty Images)

BRUSSELS, Feb 22, 2019 (BSS/AFP) – The European Commission said Friday it
would lift the ceiling on aid EU member states can pay out to their farmers
without special authorisation.

The limit on the sum governments will be able pay out per farmer in times
of crisis will rise to 25,000 euros ($28,400) over three years, up from the
current 15,000 euros, said EU Agriculture Commissioner Phil Hogan.

“We have had many examples over the last number of years where we felt that
the state aid rules were not generous enough in helping member states deal
with crisis in their country from time to time,” he told AFP.

The new ceiling comes into force in March, he said.

However, limits on the total amount member states can pay out to their
agriculture sector will remain in place.

Hogan said the new measure “struck a balance” between the need for more
capacity to help farmers in need, and any danger of distorting competition
with excessive subsidies.

“We would be blamed for not having a level playing field,” he said.