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Spain May Lose 16 Per Cent of Funds from CAP

23 November 2012, at 1:16pm

SPAIN - The Coordinated Agricultural Organisations (CAO) have said that the Common Agricultural Policy (CAP) budget for 2014-2020 could reduce the nation's funding by 16 per cent.

The worst case scenario, posited by Herman Van Rompuy, President of the European Council, is that Spain's support from the CAP will suffer a reduction of 16 per cent. This figure accounts for the inclusion of Croatia in the EU as the 28th member.

Another possibility that the CAO have sighted as a potential problem for farmers is the the EC proposal that still reduces funding but only by 11 per cent. The CAO are expecting a compromise between the two possible outcomes to occur.

Meanwhile the CAO is urging the government to act in the best interests of the farmers. Also of note for the CAO is the issue of inactive farmers receiving CAP funding. The CAO say there are 100,000 people holding farms and producing goods but 500,000 reveiving funds.

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