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Less Favoured Area (LFA)

An area in which farmers are entitled to financial compensation due to a natural handicap (such as high altitude, difficult climate or poor soil). Farmers in the hills and mountains and in areas with another natural handicap are at a competitive disadvantage compared to other farmers. In acknowledgement of this fact and with a view to maintaining farming in these areas since the 1970s, the European Union has provided farmers in these areas with financial compensation, in the form of ‘compensatory allowances.’

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