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EU Reforms Needed To Keep Young Farmers On The Land

Tracts of countryside in Spain are likely to turn into desert or waste dumps unless the European Union provides enough support to young farmers to stop them from leaving the land for the city.

Measures to support young farmers will be part of draft proposals due on Oct. 12 for overhauling the bloc s controversial 55-billion-euro – ($75-billion-) a-year Common Agricultural Policy (CAP) from 2014.

But with just six per cent of European farmers under the age of 35, time is running out to prevent many farms from being abandoned, and the incentives may not be enough to lure young Spaniards to cultivate marginally profitable land.

Cesar Trillo, who grows grains, forage, fruit, vegetables and beans in the northern province of Huesca, grew up in a household of six who worked a small holding, but he is now the only farmer left in his family. He advised his two daughters to study engineering rather than take up farming.

That s the way it is. Farming in this country has been unprofitable and God forsaken for years, said Trillo, who is 64. There won t be a generational handover in my case.

More than 10 per cent of all land in Spain is used to grow grain on land where irrigation is not feasible, and it only yields about one-third as much as fertile parts of northern Europe and the Black Sea basin.

This makes farm profits marginal, and Spanish farmers depend on EU subsidies for 30-40 per cent of their turnover. EU data show that European farmers earn an average of less than 1,000 euros a month, or 34 per cent less than urban workers.

The unirrigated acreage planted to cereals in Spain has already dropped by 11.5 per cent since 2002 as direct subsidies have been cut in previous CAP reviews. Expected further reductions could put young people off farming altogether.

The CAP is less and less supportive of farm economics, and that will wreck competitiveness, for example, of dryland farming. Young people leave because they have no hopes, said

Luis Lopez-Bellido, professor of agriculture at the University of Cordoba.

Consolidation

More fertile farmland in some regions may be snapped up by other producers. Demand by farmers is propping up land values in several parts of the world.

Andres del Campo, president of the 700,000-strong Spanish Federation of Irrigators, Fenacore, noted that farmland is not in demand in Spain s dead property market and needs constant irrigation or tillage to remain productive.

What society in general and politicians must realize is that when farmland is abandoned, especially in the Mediterranean, it does not turn into a forest, say, but rather a desert or dump for the nearest town.

Proposed solutions

Currently under CAP rural development rules, member states and the EU can jointly finance payments of up to 55,000 euros for qualified farmers under the age of 40 over the first five years after they set up business.

The commission will propose raising the maximum installation aid payment for young farmers to 70,000 euros (as part of its plans to reform the CAP from 2014, according to draft proposals due in October.

Del Campo noted that of 630 million euros already earmarked for installation aid between 2007-13 in Europe as a whole, only one-quarter has been allocated and just 8,000 young people have taken up farming.

Mindful of such criticism, the commission will also propose a 25 per cent increase in direct EU subsidies for young farmers in their first five years payments that are fully funded from the bloc s budget and therefore universally applied.

Joris Baeke, president of the EU Council of Young Farmers (CEJA) who is 33 and grows cereals, potatoes, onions, beans and sugar beets in the Netherlands, said new subsidies could be a cost-effective way of reversing the aging of Europe s farm population.

The real problem for young farmers is being able to start up a business. It keeps even some very motivated people out. We are entrepreneurs in the end. You take on loans to be able to run your business, but interest needs to be paid, he said.

The share of young farmers in the overall farming population is quite small, so if you target support to the first five years after they start up, you can do a lot with a relatively small part of the total budget.

Lopez-Bellido was less optimistic.

CAP (installation) aid is not going to solve this, because it is a token gesture, he said. If Spanish farmers depend on subsidies for 30-40 per cent of their income, then you tell me how they will live without those subsidies.

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Facts on young farmers in Europe

Following are key facts about the age of Europeanfarmers, how much they earn and what they produce.

Aging

S ixpercentoffarmersareagedlessthan35inthe27membercountriesofthe European Union.

A lmost half of EU farmers are more than 55, 34 per cent of them are more than 65. Over-55 farmers outnumber under-35 farmers by nine to one.

L atestavailabledatashowed786,000Spaniardsworkedinfarmingin2009,

down from 979,000 in 2004. Grants

U ndercurrentCAPruraldevelopmentrules, memberstatesandtheEUcanjointly finance payments of up to 55,000 euros for qualified farmers under the age of 40 over the first five years after they set up business.

T hecommissionwillproposeraisingthemaximumpaymentforyoungfarmers to 70,000 euros as part of its plans to reform the CAP from 2014, according to draft proposals due on Oct. 12.

Not all young European farmers have access to this installation aid, which is a voluntary measure. Malta, the Netherlands, Slovakia, many German regions and Wales have opted out from the beginning, while Ireland and Latvia have scrapped

the measure due to the financial crisis. Income

T heaverageannualincomeforEU farmersislessthan12,000eurosperyear, or 34 per cent less than for urban workers.

T otalfarmincomeinSpainfellby6.2percentbetween2004and2009, thelatest year for which figures are available. It has been declining steadily since 2003.

Spanish farms

S panishfarmerscangrowaboutthreetonnesofgrainperhectareofdryland, compared with eight to nine tonnes in more fertile parts of Europe and the Black Sea basin.

A griculture in general accounts for 2.8 per cent of Spain s economy.

S panishagriculturaloutputaccountsfor12.5percentofthatproducedintheEU, ranking it third in the bloc after France and Italy.

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Amateur models pose during a photo shoot to promote the 2012 edition of the young farmers calendar (Jungbauernkalender) in Vienna. The calendar features young farmers or farmers daughters and sons, posing in an agriculture environment.Photo: REUTERS/Heinz-Peter Bader

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