site.btaEC Allows European Farmers to Receive Higher Upfront Payments under CAP Budget

The European Commission (EC) said Friday it had authorized EU Member States to provide higher upfront payments to farmers from the Common Agricultural Policy budget to tackle liquidity problems.

From October 16, farmers will be able to receive up to 70% of direct payments in advance, as they used to receive 50%, the EC said in a statement. Similarly, upfront payments for rural development could be increased to 85% instead of the usual 75%.

European farmers have liquidity problems due to adverse weather events that have impacted yields in recent years, as well as high interest rates in European financial markets and high commodity prices for their operations. EC's Friday decision follows a request from several EU countries.