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Small and medium-sized farms to be placed on a better footing in 2014

The Bundesrat allows respective bill to become law

Many smaller and medium-sized farms in Germany are to receive compensation for cutbacks in direct payments before the end of this year.

The Bundesrat (federal state chamber) endorsed the Act on the granting of a redistribution premium in 2014 in Berlin on Friday. At the end of December this year, farmers will thus receive an additional payment for the first 46 hectares alongside the single farm payment. 6.8 percent of the German ceiling on direct payments has been earmarked for this payment, corresponding to around 352 million EUR in total. While approx. 50 EUR/ha will be allocated for the first 30 hectares, an amount of 30 EUR/ha has been envisaged for the next 16 hectares.

This Act will implement an important part of the reform of the Common Agricultural Policy (CAP) at national level. Federal Minister of Agriculture, Dr. Hans-Peter Friedrich, stressed: "Our smaller and medium-sized farms are the backbone of rural areas. We want to preserve a diverse agricultural sector here in the future as well. This Act marks the successful start of the transposition of the European agricultural reform at national level.

A new system of direct payments will, under the reform of the Common Agricultural Policy, be applied in the post-2015 period. Transitional arrangements will allow Member States to disburse a redistribution payment in 2014. This option is being exercised with the Act on the granting of a redistribution premium of direct payments in the agricultural sector in 2014. The German Bundestag adopted the Act in late January. With the decision passed by the Bundesrat the law-making process is nearing completion. The Act can now be promulgated and take effect in due time before 1 March 2014.

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