"Any substantial reduction of the higher level of payments could cause significant undesirable consequences in some member states," the ministers pointed out in a joint statement on 17 March.
Opposition to the Commission’s plans to cut payouts to farmers receiving €100,000 or more by 10-45% was led by Germany and the UK, whose landowners would have been particularly affected by the move. But they were strongly supported by the Czech Republic, Denmark, Hungary, Latvia, Romania and Slovakia.
Many also argued that capping the level of payments would only lead to landowners artificially splitting their parcels into smaller farms in order to be eligible for additional subsidies.
The Commission proposals, presented last November, were non-legislative, but were to set the stage for discussion and deliberation in advance of formal legislative proposals in May 2008.
Ministers also agreed to a 2% increase in national milk quotas as of 2015, although a number of member states voted against. Small farmers have been resisting any change in the way milk production is organised across the bloc, arguing that it will lead to a drop in prices and increased volatility (EurActiv 7/02/08).
In the end though, ministers agreed that the 2% increase represented a "soft landing" approach, capable of ensuring a smooth transition and predictability for producers.
Lastly, the Council called on the Commission to look into new tools to help the agricultural sector adapt to new challenges, such as climate change and water scarcity, saying that "new risks require a wider response", including new financing options.
