To reduce fluctuations of producers' incomes 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 9 types of actions:
- training measures and exchange of best practices
- support for the administrative costs of setting up and replenishment of mutual funds (farmer-owned stabilisation funds)
- Investments making the management of the volumes placed on the market more efficient
- Replanting of orchards following mandatory grubbing up
- Coaching to other POs, APOs, PGs or individual producers
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.
POs may spend maximum one third of the expenditure under the operational programme on crisis prevention and management measures.
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 contributions – are set out in Annex IV to 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The ways withdrawn products can be used are determined by national authorities, but one of the options must be free distribution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 shall 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 contributions)
These shall 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 shall 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 or its own members 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 disasters 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 or replenishment of the 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.
Support related to coaching
100% EU financial assistance is available for transfer of knowledge on crisis prevention and management measures from for experienced POs or APOs all over EU to junior POs, PGs or individual producers (the latter located in regions with an organisation rate lower than 20%). In addition, to the improvement of the efficiency linked to the implementation of these measures, it may also promote the setting-up of new producer organisations, merging existing ones or enabling individual producers to join an existing producer organisation; creating networking opportunities for coaching providers and recipients, to strengthen in particular marketing channels as a mean of crisis prevention and management.