Subsidies boost new EU joiners

BRUSSELS - Farmer incomes in the EU's most recent member countries rose by a massive 54 per cent in 2004, mostly due to improved market prices and also to handouts of Brussels subsidies, the EU's statistics agency said on Friday.

In the EU's previous configuration of 15 member states, incomes

increased by 0,8 per cent, bringing the overall EU-25 rise to 3,3

per cent from 2003, Eurostat said in a statement.

According to the EU's executive Commission, the main reasons for

the revenue rise were sharp production increases in arable sectors

-- particularly in cereals, oilseeds, wine and olive oil -- and

higher market prices in the livestock industry.

 

For the 10 mostly post-communist countries that became EU

members in May 2004, higher producer prices accounted for 60 per

cent of the income rise, with the balance accounted for by recent

access to the EU's system of farm subsidies, it said.

 

In the new member states, farmers in the Czech Republic saw the

largest income rise of 108 per cent in 2004, followed by Poland

with 74 per cent, the Commission said.

 

"There will be a large gap between old and new member states but

that gap is now closing," Michael Mann, Commission spokesman for

agriculture, told a news conference.

 

- Nampa-Reuters

 

According to the EU's executive Commission, the main reasons for

the revenue rise were sharp production increases in arable sectors

-- particularly in cereals, oilseeds, wine and olive oil -- and

higher market prices in the livestock industry.For the 10 mostly

post-communist countries that became EU members in May 2004, higher

producer prices accounted for 60 per cent of the income rise, with

the balance accounted for by recent access to the EU's system of

farm subsidies, it said.In the new member states, farmers in the

Czech Republic saw the largest income rise of 108 per cent in 2004,

followed by Poland with 74 per cent, the Commission said."There

will be a large gap between old and new member states but that gap

is now closing," Michael Mann, Commission spokesman for

agriculture, told a news conference.- Nampa-Reuters

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