AGEA payments to the livestock sector

Subject: AGEA payments to the livestock sector

Since 2004, the Italian livestock sector has received subsidies to compensate for the removal and destruction of carcasses, for weather-related risks to facilities and for the risks associated with the spread of animal diseases.

Over the years, this instrument has continued to be popular amongst farmers, bringing huge benefits to society, as it has greatly curbed animal burials and other unauthorised practices.

In 2015, the introduction of a new IT management system, run by the Italian Agricultural Payments Agency (AGEA), led to a backlog in the payment of subsidies for the disposal of carcasses and for greenhouses over the 2015-2017 period.

In the light of the above:

1. Is the Commission aware of the AGEA’s difficulties in running the national IT system?

2. Will it urge the AGEA, as the agency responsible for managing EU funds, to take swift action to simplify procedures and pay all overdue subsidies?

Answer given by Mr Wojciechowski on behalf of the European Commission (10 March 2022)

The instruments indicated by the Honourable Member fall under different management systems.

For funds in ‘shared management’, the Commission entrusts Member States with the allocation of funds to final beneficiaries. Member States have a primary responsibility for setting up a management and control system and ensuring that this system functions effectively.

The Commission plays a supervisory role, verifying that arrangements governing the management and control system are compliant with EU Regulations.

On the specific issues of carcass removal and disposal due to the occurrence of a disease, the costs incurred by the Member States are eligible to be partly reimbursed by the EU.

In Italy, current European agricultural fund for rural development subsidies cover insurance premia for production losses at the livestock sector caused by an adverse climatic event or by animal diseases (1).

The Commission is aware of delays by the Agricultural Payments Agency in making such payments and is monitoring the development with the national authorities.

These payments constitute however a minor part of the payments mentioned by the Honourable Member, the main part being concerned by purely national or regional schemes.

The management of those latter schemes falls entirely within the competences of the Member States. The Commission does not have any competences in that regard.

⋅1∙ Article 37 of Regulation (EU) No 1305/2013. | | ( | | )