The impact of high energy prices on the agricultural sector and rural areas

Key points

The EESC:

• considers the hikes in energy prices a major concern for the EU, particularly affecting rural areas and the agricultural sector;

• urges Member States to utilize National CAP Strategic Plans over ad hoc policies to address crisis resulting from rapid market changes;

• suggests incorporating counter-cyclical elements in CAP instruments post-2027 to tackle rapidly rising production costs;

• supports initiatives for reducing reliance on fossil-based inputs and emphasizes the need for policy coherence in achieving a green transition;

• advocates for fair contractual practices within the food supply chain that consider higher production costs, calling for harmonization and improved statistical data;

• recognizes the impact of high energy prices on business and economic activity in rural areas, stressing the importance of energy infrastructure development for employment opportunities;

• emphasizes the critical role of rural areas in ensuring food security, strategic autonomy, and resilience, urging commitment to the EU's long-term rural vision;

• highlights the significance of recognizing and promoting local and regional energy communities for a fair and efficient energy transition in rural areas, with a focus on renewable energy communities;

• stresses the importance of energy savings and efficiency in both private and public consumption, advocating for measures such as energy renovations, investments, and less energy-consuming agricultural operations.