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Study warns: EU agricultural reform hits Saxony particularly hard

Study warns: EU agricultural reform hits Saxony particularly hard
Criticism of the planned reform of EU agricultural policy is also increasing in Saxony. (archive picture). / Photo: Jan Woitas/dpa
From: DieSachsen News
Eastern German agriculture is not the only sector to be concerned. Critics say that the planned reform of European agricultural policy would primarily be to the detriment of the sector in the east.

The planned reform of the Common Agricultural Policy (CAP) in the EU is causing growing unrest in Saxony. On Friday, the German Federation for the Environment and Nature Conservation (BUND) joined the ranks of critics and spoke of "high risks for nature and agriculture" in the Free State. "A reform of agricultural subsidies must be socially fair, ecologically effective and adapted to the agricultural structures in the federal states, and in the future, taxpayers' money should only be spent as subsidies for public services such as environmental protection," explained BUND head Felix Ekardt.

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BUND fears reduction in agri-environmental measures

Saxony has built up important agri-environmental measures in recent years - at least to some extent, emphasized Ekardt, referring to biodiversity, insect protection and organic farming. "These programs are central to sustainable agriculture. If new funding rules lead to precisely these measures being cut back, it would be a massive step backwards for agriculture, nature and the development of rural areas."

GAP also finances environmental measures

The CAP provides farms with direct income support. At the same time, it finances environmental measures. The problem is that the planned cuts are heavily dependent on farm size. East German farms would be particularly affected because they have often grown larger historically. In Saxony alone, the 100 largest agricultural companies manage around 30 percent of the agricultural land, BUND clarified. Cuts based on farm size would therefore disadvantage eastern German agricultural structures in particular and at the same time increase the pressure on environmental measures.

Study commissioned by the Greens warns of consequences

A recent study commissioned by the Green parliamentary group in the Saxon state parliament also warned of significant consequences for Saxony: depending on the design of the reform, direct payments could fall by 28 to 51 percent. Instead of around 164 million euros annually, only 82 to 120 million euros would reach the Free State. In addition, the federal states would have to raise more of their own money to finance agri-environmental measures. For Saxony, this would result in an additional funding requirement of around 34 million euros per year.

Günther: Take greater account of East German concerns

Saxony's former Agriculture Minister Wolfram Günther called for greater account to be taken of East German concerns in the European debate. "The EU Commission's reform plans put Saxony and eastern Germany at a structural disadvantage. Anyone who wants a level playing field must not ignore regional differences in agricultural structures," emphasized the former Minister of Agriculture. "If environmental services depend on tight state budgets in future, nature and climate protection will become a bargaining chip. This is the wrong path for sustainable agriculture."

Farms with regional roots would be particularly affected

Alfons Balmann, Director of the Leibniz Institute of Agricultural Development in Transition Economies and co-author of the study, warned of massive distortions, especially in eastern Germany. "The planned capping of direct payments will not affect anonymous large investors, but rather regionally anchored businesses such as agricultural cooperatives, their employees and tens of thousands of landlords in rural regions." Saxony is threatened with value creation losses of around 100 million euros per year.

BUND Saxony supports the demand of the East German agriculture ministers for fundamental improvements to the CAP plans at federal and EU level. In January, they had already warned in the "Berlin Declaration" that eastern German agricultural structures would be disadvantaged by capping and degression. The current study now also shows that environmental and nature conservation programs could also come under pressure, they said.

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