| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : EU Economy Last Updated: Apr 26, 2011 - 1:03 AM

US farm subsidies face cuts; Europe's sacred cows safe despite rising food prices
By Michael Hennigan, Founder and Editor of Finfacts
Apr 12, 2011 - 4:45 AM

Email this article
 Printer friendly page

With the US farm economy booming, Washington is set to tackle some sacred cows including farm subsidies. However, in Europe there is no appetite to tackle the farming lobby despite rising food prices. The biggest battle there is dividing up the Common Agricultural Policy budget - - one of the the world's premier socialist programs  -- that accounts for over 40% of Brussels' annual budget.

In a signal of business as usual in Europe, last month agriculture ministers refused to cap payments to big farmers and companies, which take the lion's share of the welfare budget. However,  there was a concession on a fairer share-out of funds between farmers in eastern and western Europe.

French Agriculture Minister Bruno Le Maire said negotiations on a new share-out would likely be "very tough."

Multinationals and big landowners are the biggest beneficiaries and in 2009, 434 Irish-based individuals and companies received more than €100,000 each under the welfare scheme. Across the whole EU, it is the big farmers and companies at 20% of the population who receive 74% of funding.

Glanbia Ingredients received over €3m in 2009 and total Irish receipts were €1.9bn.

Europe's agriculture commissioner Dacian Ciolos said in an interview last month that "it is difficult to explain to outsiders that a few farmers are paid hundreds of thousands, or even millions of euros."

Farm payments account for roughly €55bn of the EU's €120bn annual budget and every year around €42bn is given in free handouts to farmers in Europe. Beef baron Larry Goodman received more than a half million euros in 2004 and the direct payment is made even if only for watching the grass grow on his 1,600 acre estate.

In the UK, the Queen gets a welfare cheque to support her Sandringham estate.

Finfacts article: Large Farms in EU: Less than 1 % of European farms occupy 20 % of usable land

The OECD says subsidies provide 23% of farm income in the EU compared with 9% in the US and 61% in Japan.

France is the biggest recipient of CAP funds at about 20%, with Spain, Germany, Italy and the UK all receiving significant amounts (two-thirds of the total between these five countries in 2006). Greece and Ireland receive the largest per capita payments.

Member countries that joined from 2004 initially receive 25% of the rate of the older members. However, payments will converge by 2013.

The Wall Street Journal reports that Republican House Budget Committee chairman Paul Ryan's blueprint for the fiscal 2012 budget puts agriculture subsidies in the cross hairs, seeking to cut $30bn over a decade - - starting when the next farm bill is passed in 2012 - - out of a total of some $150 billion in total expected spending on farm subsidies.

The Journal says $5bn in direct payments to farmers accounts for a third of the roughly $15bn in total farm subsidies last year, according to government data.

The US Department of Agriculture estimates net farm income this year will be the second-highest in 35 years and who has heard that Irish farm income surged 39% in 2010? There were no tractorcades to hail this good news!

Irish State Secret!: Ireland's farm incomes rose a stunning 39.1% in 2010

Global food prices rose for eighth straight month in February; Real food cost at lowest since Great Depression

Government support to farmers rises slightly in OECD countries to $252.5bn or 22% of total farm receipts in 2009

Number of EU Common Agricultural Policy millionaires rises 20% in 2009

Some Irish land will have to be dezoned says planning board head; Ireland has 88 planning authorities for population of 4.4m

Irish Farmers and Sacred Cows

Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

EU Economy
Latest Headlines
Spain's strong recovery to slow in the next few years
Italy's Mezzogiorno is Achilles' heel of Euro Area - lowest birth rate since 1862
Euro Area GDP grows at weak 0.3% in Q2 2015
German GDP up 0.4% in Q2 2015; France's GDP stagnates
Germany's Surplus: Lots of critics; Credible solutions scarce
Euro Area industrial production dips in June and May after a flat April
Greece faces two years of recession according to EU officials
High EU youth unemployment rate not as bad as it seems
Eurozone retail PMI surges to highest since January 2011
ECB monetary policy still tight for Southern Europe
German exports fell in June — surplus at record; Exports up 13.7% year-on-year
Eurozone manufacturing sector continued to expand in July
Weak euro unlikely to have significant impact on Euro Area growth
Is Euro Area Ireland's top trading partner?: EU28 is overwhelmingly UK's
German car firms boost exports from Spain, UK, Portugal, Czech Republic, Slovakia, Hungary and Romania
Flash Eurozone manufacturing/ services PMI close to four-year high despite Greek crisis
Krugman calls euro a Roach Motel; Hotel California gets 1-star grade
Greece & Euro Crisis: July 2015 articles from Finfacts
Greece and other poor countries in Euro Area will not become rich
Euro Area manufacturing/ services PMI hits four-year high in June
Western European car market: Recovery continues
Greece could become a failed state like Venezuela
Multinational companies pay on average 30% less tax than domestic competitors in EU
EU's list of 30 tax havens omits the biggest 4 in Europe
China to invest in Juncker's European investment fund
Greek talks collapse; Game theorists gambling with future — Germany's vice-chancellor
German exports and industrial production in strong rises in April
Tackling Inequality: Scandinavian countries have the most successful welfare systems in Europe
Eurozone unemployment fell by 130,000 in April 2015 — down 849,000 in 12 months
Eurozone service sector business activity slowed during May
German 2015 GDP forecast cut; Jobless level at 24-year low
Eurozone manufacturing in modest acceleration in May
FDI into Europe at record in 2014; UK on top: Germany location for future investment
Eurozone economy loses growth momentum; Jobs growth rises
Athens leak suggests Juncker has plan for Greece
Draghi will not end QE early but warns of risks
Eurozone grows faster than US and UK in Q1 2015
German GDP at slower pace, France faster in Q1 2015
Germany may cut income tax; Germans still shun risky investments
Germany had record exports and imports in March 2015