EU proposes aid package to help farmers weather Ukraine war

BRUSSELS (AP) — The European Union's executive arm on Wednesday proposed an aid package of 500 million euros ($549 million) to help food producers in the 27-nation bloc weather the economic impact of the war in Ukraine.

With Russia and Ukraine providing about 30% of the world's wheat, the conflict between the neighboring nations has led to higher food prices globally and already rising production costs.

Fertilizer prices had risen substantially before the war started last month. EU officials are worried the war will cause energy prices to surge and put farmers under more pressure by further impacting fertilizer costs.

The European Commission said the proposed aid would be distributed in national allocations. The commission's plan also would authorize EU countries to supplement the bloc's support by up to 200% through their own contributions, which could generate another 1 billion euros.

To increase agricultural production capacity within the EU, the commission proposed to temporarily allow the farming of any crops for food and feed purposes on fallow land, while maintaining greening payments for farmers at their full level.

“The EU is an agricultural superpower, and we will ensure that our farmers have the commission’s full support to respond to the global needs for food,” Agriculture Commissioner Janusz Wojciechowski said. “We will do this while working towards making our food supply chains more resilient and sustainable to future crisis.”

While the EU does not face an immediate food shortage, the region is a net importer of specific commodities, including feed crops from Ukraine. And European farmers are highly dependent on Russian fertilizers to grow their crops.

“This vulnerability, together with high input costs, such as fertilizers and fossil energy, is causing...