EU To Give 500 Million Euros To Help Farmers & Allow Them Grow Crops on Fallow Land

To combat food price hikes and probable shortages caused by Russia's war in Ukraine, the European Union would provide 500 million euros ($550 million) to farmers to assist them and allow them to grow crops on fallow land.

The EU's executive European Commission's proposals, which were published on Wednesday, include aid to Ukraine's farmers in sowing corn and sunflower seeds and tending to wheat.

Ukraine is a major worldwide player in sunflower oil, accounting for more than half of global commerce, and also has large holdings in wheat, barley, and maize, causing price spikes and fears of shortages.

Given that the EU is a net exporter of cereals, the EU executive reiterated on Wednesday that there was no imminent threat to food security in the 27-nation bloc.

Recognizing that farmers would face increased fuel and feed prices as a result of the crisis, the EU will allocate 500 million euros to help farmers who have been struck the hardest by the crisis, particularly those who are involved in more environmentally friendly production.

The Brussels-based Commission will also allow farmers to produce crops on the nearly 6% of EU agricultural land designated aside to promote biodiversity for a limited time.

The Commission estimates that this, together with record Indian shipments, will help cover part of Ukraine's typical wheat exports of 20 million tonnes.

The Commission also said it supported EU countries utilising options to minimise blending of biofuel - normally created from crops like cereals, vegetable oils and sugar - in road fuel as a method of alleviating pressure on supply of food and feed commodities.

It also recommended a 330 million euro emergency aid package for Ukraine, with some of the funds going to farmers.

Ukraine's minister of agrarian policy and food, Roman Leshchenko, told EU lawmakers this week that his nation regularly exported 80 percent of its agricultural and food products but was now restricting that to feed its own population.

He said that most of Ukraine's grain and harvest production used to be shipped through sea ports, which have since been damaged or closed, and that farmers were battling to complete the spring planting season under bombardment.

"We must do everything possible to avoid a global food system breakdown and a hurricane of hunger," he warned.

Ursula von der Leyen, President of the European Commission, spoke to the chamber on Wednesday and echoed Leshchenko's proposal to open Ukraine's wheat sea exports.

"From Lebanon, Egypt, and Tunisia to Africa and the Far East, the ramifications will be felt. I urge (Russian President Vladimir) Putin to release the ships. Otherwise, he will be held accountable for both war and hunger."

Moscow claims that its "special military operation" is aimed at disarming its adversary. It denies targeting people and claims that Western sanctions on Russia are equivalent to declaring war on the country.