To reduce fluctuations in producers' income caused by crises, EU funding is available for crisis prevention and management measures implemented by producer organisations (POs) under their operational programmes.
Funding is available for 6 types of actions:
- support for the administrative costs of setting up mutual funds (farmer-owned stabilisation funds)
National authorities must determine, in their national strategy, which of these instruments can be funded in their country.
POs may take out loans on commercial terms to finance crisis prevention and management measures. The repayment of the capital and the interest on those loans may be eligible for financial assistance under the operational programmes of POs.
This means withdrawing products from the market (not putting them up for sale).
For 16 main products, the maximum amounts of support for withdrawals – including both the EU and PO contribution – are set out in Annex IV of Regulation 891/2017.
If any country decides to allow withdrawals of other products, they must set maximum amounts of support for them.
For each product, withdrawals cannot exceed 5% of the volume of production marketed by the PO (volumes going to free distribution are excluded from this calculation).
The volume of marketed production is to be calculated as the average of the previous 3 years or, if this information is not available (e.g. for newly recognised POs), on the basis of the volume of marketed production for which the PO was recognised.
The ways withdrawn products can be used are determined by national authorities, but one of the options must be free distribution.
It may be possible to use them in the processing industry, if this does not distort competition for the industries concerned (in or outside the EU).
Green harvesting / non-harvesting
- Green harvesting – totally harvesting non-marketable (but not damaged) products on a given cultivated area, before the normal harvest.
- Non-harvesting – not taking any commercial production from the cultivated area during the normal production cycle. Does not include destruction of products due to climatic event or disease.
Both measures have to be additional to and different from normal cultivation practices.
They cannot both be used for the same product and area in any given year, or in any 2 consecutive years.
Countries that allow green harvesting / non-harvesting must adopt detailed rules on implementation and control (that may not have any environmental or phytosanitary impact).
Compensation amounts (including EU and PO contribution)
These must be set per hectare by national authorities, to cover either:
- only additional costs generated by the harvesting (including environmental and phytosanitary management), or
- not more than 90% of the maximum support level for withdrawals.
Countries that allow these measures must adopt detailed rules on their implementation.
Any action under promotion/communication measures must be additional to any ongoing promotion/communication action being applied by the PO concerned.
EU funding is available for harvest insurance managed by a PO to help safeguard members’ incomes and cover market losses caused by natural disasters, climatic events, diseases or pest infestations.
National authorities must adopt detailed rules on harvest insurance, especially to ensure it doesn't distort competition in the insurance market.
They may also contribute additional national financing. However, the total public support for harvest insurance (EU + national) cannot exceed the following percentages of insurance premiums paid by producers:
- 80% of the premium for insurance solely against losses due to adverse climatic events that can be regarded as natural disasters
- 50% of the premium for insurance against natural desasters and other losses due to adverse climatic events or against animal / plant disease or pest infestations.
Harvest insurance measures may not cover insurance payments that compensate producers for more than 100% of the income loss suffered, taking into account any compensation from other related support schemes.
Support for the administrative cost of setting up mutual funds
EU funding is available in the first 3 years of the mutual fund's operation – covering the following proportions of the PO's contribution:
National authorities must adopt detailed rules for implementing this measure. They may fix ceilings for the amounts that may be received by a PO.