More than 80 million euros have not been received by farmers since 2014, stated Commissioner for Agricultural Payments Andreas Kyprianou, before the Parliament's Finance Committee, which examined the KOAG budget for 2025 of 17,3 million euros.
At the same time, he stated that "300 young farmers, in addition to the subsidies they receive as young farmers, have entered rural development programs and this is very encouraging for the future of the primary sector."
He also said that through the Cyprus Agricultural Payments Organization (KOAG), the Cypriot agricultural economy has been subsidized with the amount of 2,21 billion euros since its establishment.
Mr. Kyprianou said that in 2024 they subsidized the Cypriot agricultural economy with 119,5 million euros, an amount that includes rural development programs, as well as direct payments, hectare subsidies and more.
"The prospect of the Cypriot agricultural economy and our farmers, our livestock breeders, our processors is very strong and I am particularly pleased because through the announcement of the rural development program in 2023 we have essentially exceeded the projected amount in relation to young farmers," he added.
At the same time, Mr. Kyprianou said that the problem that exists is the issue of financial tools.
"This is the very big problem and today there is money to be received from applicants in excess of 80 million euros, starting in 2014," he added.
"A major discussion is currently underway by the Ministry with the banking sector to find exactly the ways to enable those who want to enter the profession of farmer, livestock breeder, or agricultural product processor to be financed," he added.
"They may be approved, but in order to receive the money they have requested through the plan, they will have to make the expenditure, bring the invoices to pay their subsidy," he said, adding that the subsidy is usually around 60% on average.
In statements after the Committee meeting, AKEL MP Andreas Kafkalias said that the Commissioner informed them that there are unspent funds of €80 million over the last 10 years.
He added that "this amount concerns applications that were made to the CAPO and have been approved, but because the applicants cannot secure the necessary funding for their share, they do not even receive the sponsorship from the CAPO."
"We have again asked the Government to inform us how it is proceeding to resolve this problem," he said, adding that "because today, representatives of the Ministry of Finance were unable to respond, we have requested that the Government's response be submitted in writing."
The Parliamentary Representative of the Democratic Party – Cooperation of Democratic Forces, Alekos Tryfonidis, said that an amount of around 2,21 billion euros since 2004 has been allocated as subsidies for Cypriot farmers, to support agriculture and the countryside, a very important investment for our country. He added that in 2024, 45 million euros have been paid in hectare subsidies and almost 100 million euros in total.
He stated that it is very positive that 300 young farmers have been added to the beneficiaries of the CAP projects and added that there is enormous interest from young farmers, which is why the available budget is being doubled both for rural development programs that concern young farmers, as well as for the New Farmer's Dowry program, which will be re-launched in 2025.
Mr. Tryfonidis said that the problem is funding and financial tools and added that "they are not finding their own share that they must pay initially, so that they can then utilize the various funds."
Mr. Tryfonidis called on the Organization to continue consultations with the Banks to find a solution, while he expressed the need for proper information for those involved in agriculture and livestock farming to utilize subsidy programs and modernize agricultural production.
Source: KYPE
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