EU farmers need urgent support to survive volatile markets, says EESC

European farmers are facing mounting crises, from extreme weather to market instability and unfair competition. The European Economic and Social Committee (EESC) has issued a stark warning: existing EU policies are failing to protect farmers, and urgent reforms are needed to secure their incomes, strengthen their bargaining power, and ensure a sustainable future for European agriculture.

The EESC, in an opinion requested by the Polish presidency and adopted in its recent plenary, calls for a resilient and knowledge-based agricultural system that keeps farmers at its core. The common agricultural policy (CAP), as it stands, is not equipped to handle the growing challenges in the sector. The committee suggests various financial tools to support farmers, including public insurance schemes for natural disasters, counter-cyclical aid, and targeted direct payments. The message is clear: decisions affecting farmers should be made with their involvement.

One major recommendation is the creation of mutual funds, a system already in place in some EU member states, which could provide an additional safety net during economic downturns. These funds, financed collectively by farmers, industry operators, regional governments, and the EU, would complement CAP support and ensure greater financial resilience.

Piroska Kállay, one of the report's three rapporteurs, reflected on the ongoing efforts to support European farmers saying: “We have been working on this issue for many years, and we are pleased that it was a priority during the previous EU presidencies of Hungary and Belgium, as well as the current one held by Poland. The French presidency also during the first semester of 2022  kept it on the agenda. We hope that future presidencies will continue to prioritize this important issue.”

Reforming CAP: fair prices and stronger market power

With the CAP set for review after 2027, the EESC stresses that the budget must be restored to at least 0.5% of EU GDPto meet the challenges ahead. Crucially, the committee is pushing for stricter trade regulations to ensure equivalent standards in all international trade deals. This would protect EU farmers from being undercut by cheaper imports that do not meet the same environmental and labour requirements.

Another key concern is below-cost selling, a practice that puts farmers under extreme financial pressure. The EESC urges EU policymakers to seriously consider banning below-cost purchases to prevent large retailers from squeezing farmers out of business. Spain’s food chain laws provide a model for how this could work across the EU.

To improve transparency and strengthen farmers' bargaining power, the committee proposes establishing an EU digital centre to monitor market prices, production costs, and profit margins across the food chain. It also advocates for new policies that would allow farmers to negotiate prices collectively and calls for increased financial support for cooperatives and producer organisations.

Arnold Puech d’Alissac, rapporteur of the opinion, emphasised the importance of unity and economic strength, stating: “We have to be more independent. We need more income and we need to be more competitive. Nowadays, acting together as 27 countries is vital.”

A green and fair transition

While climate targets are necessary, the EESC warns that farmers cannot be expected to bear the costs alone. It calls for a dedicated sustainability fund to help primary producers transition to greener practices without financial ruin. This should be funded either through the CAP or other EU budgets.

The report also highlights the risk of carbon leakage, where strict EU climate regulations force domestic producers to cut emissions while competitors from third countries face no such restrictions. To prevent this, the EU must support carbon-efficient food production and ensure trade agreements do not create unfair advantages for non-EU producers.

Joe Healy, rapporteur of the opinion, speaking about the significance of farming, said: “Farming is a noble profession with two key objectives: produce top quality safe food to feed the people and maintain and enhance the environment. All we ask for in return, is an honest day's pay for an honest day's work and respect and a fair price for the food we provide..”

The future of European farming

The EESC emphasises that vibrant rural areas are key to Europe’s agricultural resilience. Investment in agricultural research, rural development, and access to finance must be increased to help farmers modernise, innovate, and stay competitive. At the same time, the bureaucratic burden on farmers must be reduced, with simpler CAP subsidy rules and fewer administrative hurdles.

The Polish presidency, which commissioned the report, has signalled its intent to push for stronger crisis management tools and a fairer agricultural policy. With farmers across the EU facing growing uncertainty, the question now is how quickly EU leaders will act before more farms are lost. (ks)