2015 EU cereals crop set to drop by 8%

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New estimates for EU cereals plantings in 2015 reveal EU cereals production is expected to drop by as much as 8% this year, compared to last year, mainly as a result of the new greening measures under Common Agricultural Policy (CAP) reform

The figures were given to Copa-Cogecas’ Cereal Working Party. Newly elected chairman of the working group Max Schulman said “Latest figures show that EU-28 cereals production will be down 8% this year, to reach 293.9 million tonnes compared to last year and the area will fall by around 4%. This is mainly as a result of the new greening measures under CAP reform. Farmers have been particularly careful this year to avoid the excessive cuts in their payments which apply when they make even a very slight, unintentional error in implementing the new rules. The rules really need to be simplified and made more flexible for farmers to apply in order to be effective and to meet rising world food demand.”

“In addition, farmers and cooperatives have serious concerns about new EU rules governing futures markets (Mifid). Unless the rules are clarified, farmers and cooperatives will be classified as a financial operator despite the fact they are economic operators and deliver physical goods. Implementation of the Mifid II regulation would cause unnecessary red tape and regulation in their work simply due to misinterpretation of a European definition”, he warned. “This must be revised”, he said.

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