March 24, 2022

European Union provides aid and more land to farmers to grow crops

The European Union will provide EUR 500 million (~US$550 million; EUR 1 = US$1.10) to assist farmers and permit them to grow crops on fallow land to alleviate rising food prices and possible shortages caused by Russia's invasion into Ukraine, Reuters reported.

The proposals by the EU's executive European Commission also includes EUR 330 million (~US$362 million) of emergency support aid to Ukraine to assist their farmers.

Ukraine is a major player for wheat, barley and maize, and the biggest supplier of sunflower oil.

The EU executive said there are no immediate threats to food safety in the region. Aid will provided to farmers because they face higher fuel and feed prices.

Farmers will also be allowed temporarily to grow crops on close to 6% of EU agricultural land that is set aside to boost biodiversity.

The EU commission said these initiatives will cover some of the 20 million tonnes of wheat which Ukraine normally exports.

Roman Leshchenko, Ukraine's minister of agrarian policy and food, said they will limit agricultural and food production for domestic use. Prior to the Russian invasion, they exported 80% of agricultural and food output.

He said sea ports have been destroyed or blocked so their grain and harvest production cannot be exported. Ukrainian farmers are also struggling with the spring sowing campaign amid shelling by Russian troops.

-      Reuters