EU growers face 'dire' cash-flow situation

An EU farming organisation has expressed concern over the 'dire' cash-flow situation many growers are facing.

The EU agricultural co-operative added that with the current market prices producers cannot cover production costs, leaving farmers with cash-flow difficulties.

The co-op blamed the bad weather conditions and the increased presence of insect pests and diseases, which were 'ever harder to combat'.

Jean-François Isambert, chair of the co-op's cereals working party said: "It is essential to address these issues by providing efficient risk management tools and ensuring that at least 60% of first pillar payments are allocated to CAP basic payments.

"If farmers aren't provided with the necessary funds to buy quality inputs, the EU's cereal balance could be impacted even further, increasing the pressure on available supply."

The chair of Copa and Cogeca, Pedro Gallardo, said some European growers were considering quitting the industry.

He said: "It is indispensable that we rethink the European approach to approving plant protection products if we want to avoid producers of oilseeds and protein crops abandoning a crop that is a pivotal element of their crop rotation system."

In the UK, the NFU warned this year's harvest was set to be the worst since the 1980s as it predicted that yields could be down by a third due to extreme weather.

Source: Farming UK