Agriculture to benefit from larger EU budget

The European Parliament has approved a EUR122.9 billion (US$176 billion) EU budget for 2010, nearly half of which will go to agriculture and natural resources.

The EU will conduct a major review of the budget next year, with the UK calling for a cut in farm subsidies.

About EUR300 million (US$429.4 million) will be allocated to help dairy farmers, who for a long time have been trapped in a situation of low prices and poor returns.

The 2010 allocation for agriculture and natural resources is EUR58 billion (US$83 billion), compared to EUR52.5 billion (US$75.1 billion) in 2009.

The Lisbon Treaty, which went into effect on December 1, will for the first time give MEPs the power to challenge farm spending figures. France and a number of East European countries are expected to resist any major reallocation of farm support.