28 June 2008
Lagos — European Union (EU) tax payers could help finance farming in developing countries by up to $1.6 billion (N1.8tr) by doling out unused agricultural subsidies.
A statement from the EU said the EU farm cash would be sent over the next year or two via international organisations like the United Nations (UN) and World Food Programme to help small producers in developing countries buy seeds and fertilisers.
"There will be savings this year although it's too early to know exactly how much there will be. I don't think they (savings) will attain one billion euros. If it is one billion, I doubt (the scheme) can be just for one year; if it's 500 million, it could be a one-year scheme. The political choice will be between one and two years," the statement said.
The Commission, the EU's executive arm that administers farm and development policy on behalf of the EU's 27 member countries, would present a formal proposal before the summer.
The plan was suggested during a news conference a month ago by EU Agriculture Commissioner Mariann Boel and was presented at a two-day summit of EU leaders in Brussels by Commission President Jose Manuel Barroso.
So far, for the 2008 farm budget, the EU has been heavily under spending on classic market support measures such as export subsidies, public intervention buying of staple commodities and subsidised private storage, officials say.
Agriculture eats up more than 40 per cent of the EU's annual budget.
So far, the plan has not gone down well with many of the EU's farm ministers, who say it cannot be a sustainable solution.
"It's clear that the agriculture ministers don't very much like the idea of using money earmarked for agriculture elsewhere," the statement said.
But the Commission proposal "will probably not be for the (EU) agriculture ministers, rather for development ministers.
"And (European) farmers would not be threatened by this -- themeasure should be temporary," the statement said.
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