New data released this week by the European Commission shows an increasingly unequal distribution of the EU's farm subsidies. The figures, which relate to the 2005 financial year, show that across the whole EU, 85 per cent of payments go to the largest 18 per cent of Europe's farms. In the previous financial year, 85 per cent of payments was shared among the largest 23 per cent of recipients. The figures also show that there are 910 more farms in the top bracket of recipients who receive more than €300,000 a year compared to the previous year.
There are two drivers of this increase in the uneven distribution of payments. The first is the accession of the ten new EU member states in 2004. The second is the continuing consolidation of farms into larger units. Enlargement of the EU has brought in a large number of very small farms. Moreover, the new member states were only given a partial entitlement to farm subsidies, starting at 25 per cent in 2005 and rising to full parity with the EU-15 in 2013.
The new figures show that there are 2 790 farms receiving more than €300,000 a year, compared to 1 880 the previous year. It is widely expected that a payment cap of €300,000 will be proposed as part of the CAP 'health check' planned for 2008.
Jack Thurston, co-founder of farmsubsidy.org, a network of European journalists and activists who are pressing for more transparency in farm subsidies, said:
"These figures show that the CAP is not a small farms policy. Europe's wealthy landowners and giant agribusinesses scoop up the lion's share of farm subsidies. The more we find out about who gets what, the more we see just how disconnected the common agricultural policy is from the perceptions of the ordinary Europeans who foot the bill."
Other notable points include the following:
In the EU-15, 20 per cent of farms get 80 per cent of the payments. In the CEEC-10 countries which joined the EU in 2005, 7 per cent of the farms get 61 per cent of the payments. The CEECs which joined the EU in 2004 account for 19% of European farm area and 15% of livestock, but got just 5% of the direct payments in 2005.
Germany is the country with the highest number of large farms, with 1 660 receiving more than €300 000, up from 960 the previous year. In the UK, there are 90 farms receiving more than €500 000, and 420 receiving more than €300 000. This is up on last year, when the comparable figures were 60 and 320, respectively.
Unfortunately, the aggregate format in which the Commission has released these figures does not allow for direct comparison of inequality between EU member states. However, it is possible to ascertain the following facts:
In the UK, 55 per cent of payments go to just 11.4 per cent of recipients and 80 per cent of payments go to the top 28 per cent of recipients.
In France the largest 30.8 per cent of farmers get 73.7 per cent of all payments.
In Italy, the top 10.6 per cent of farmers get 70.3 per cent of all payments.
In Poland, 5.6 per cent of farmers get 39.6 per cent of payments.
In Spain, 81.5 per cent of payments go to the top 22 per cent of recipients.
In Germany, 68.6 per cent of payments go to the top 17.7 per cent of recipients.
In Denmark, 73.3 per cent of payments go to the top 27.7 per cent of recipients.
The data can be found on the Commission's website. For information on the country shares of EU farm subsidy spending see this story. For any media enquiries, Jack Thurston can be reached on +44 7973 155 278.
