Farmers receive CZK 35bn in subsidies in 2012

Prague, Feb 25 (CTK) - The State Agricultural Intervention Fund (SZIF) paid subsidies worth almost Kc35bn to Czech farmers last year, Kc100m lower year on year, SZIF spokesman Petr Hlavaty announced yesterday.

Subsidies from the EU grew by around Kc2bn, while support from the state budget fell in the same way.

The Czech agricultural sector received Kc31.3bn from the EU last year and Kc29.3bn in 2011. State subsidies decreased by Kc2.1bn to Kc3.7bn in 2012.

Direct payments grew by Kc2.5bn to Kc22.4bn. Single payment per area reached Kc19.3bn. Sugar beet growers received Kc1.7bn in a separate payment and farmers also got some Kc650m within supplementary payments from the state.

Support to projects withing the Countryside Development Programme reached Kc11.9bn and Kc740m went for the Common Market Organisation which includes, for example, programmes Fruit for Schools, School Milk and Support to Bee Keeping.

The SZIF administers and controls measures from the European Agricultural Guarantee Fund (EAGF), European Agricultural Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF).

The fund also checks whether farmers are justified to get the money and administers national quality food trademark Klasa and label Regional Food Product.

Czech agriculture has been profitable since the EU accession, mainly thanks to EU subsidies. Payments to farmers from countries that joined the EU in 2004 or later have been lower than those of their colleagues from older EU member states. They are to reach 100 percent this year.

Experts warn that dependence of Czech farmers on subsidies is rising in the long term which is not good. Last year's profit of Czech agriculture, according to the Eurostat's preliminary estimate, dropped to Kc15.7bn. This would be Kc1.4bn lower than 2011's record result.