Cyprus adds €2m to youth farming scheme as demand rises

The government approved an additional €2 million to ensure that all young people who have expressed interest in entering Cyprus’ primary sector can benefit from a new support scheme, President Nikos Christodoulides has announced. Speaking at the 10th Rural Culture Festival organised by the Cyprus Agricultural Payments Organisation (CAPO) in Protaras, Christodoulides said interest in the sector, particularly among younger people, had increased significantly and pledged continued government support. “I know that the funds under the new scheme have been exhausted and that another €2m is needed so that everyone can benefit. Our government is approving this €2m so that all young people who have expressed an interest will be eligible,” he said. At the same time, Christodoulides said the primary sector was facing a series of pressures, including the effects of climate change, the need for a green transition, the protection of natural resources and growing requirements for safe and high-quality food. He said the government’s responsibility was “to turn these challenges into opportunities for a more modern, competitive and sustainable primary sector”. Turning to the Common Agricultural Policy (CAP), the president described it as the most important tool available to the state for strengthening agriculture. He said this was particularly important for Cyprus, where agriculture represents a relatively small share of GDP but carries a significance that goes well beyond its direct economic contribution. For that reason, he said, the government must work on the basis of a clear plan aimed at further strengthening the sector. Within this framework, the CAP Strategic Plan provides €454m in funding, he added. Christodoulides also referred to the ongoing discussions at EU level over the future of the CAP, noting that formal consultations on the next programming period will begin on October 8. He said the government’s objective would be to ensure that the eventual agreement responds to the needs of Cyprus’ farming community. Meanwhile, referring to CAPO, Christodoulides said the organisation has been responsible during its 22 years of operation for paying direct support to farmers, including area-based payments, sector-specific assistance and support provided under Common market organisation measures. He said CAPO had evolved and modernised its operations and was now functioning more effectively, while fully respecting European and national rules. On compliance, he stressed that there was “zero tolerance” in such matters. Since its establishment, CAPO has paid more than €2.5 billion in grants to farmers, while Cyprus is this year recording what Christodoulides described as the highest absorption rates among EU member states. However, he said government intervention could not be limited to financial support obtained from the EU, particularly when exceptional circumstances place production and farmers’ incomes under pressure. As an example, he pointed to the recent foot-and-mouth disease crisis, saying that more than €20m has already been paid to deal with its consequences. At the same time, work is continuing on the safe resumption of operations at affected livestock farms. Furthermore, the government has secured an additional €4.6m to support farmers affected by last year’s drought. Christodoulides also referred to the impact of geopolitical developments, the war in Ukraine and the situation in the Middle East, saying these had placed significant pressure on production costs. Higher prices for fuel, fertilisers and other essential agricultural inputs had prompted the government to introduce an immediate €2.5m support scheme, he said. More recently, an additional €1m scheme was approved in response to further needs in the primary sector. Looking ahead, Christodoulides said the government’s objective was to create a more competitive and resilient sector, with greater water security, stronger protection and sustainable use of natural resources, better adaptation to climate change and improved services for both producers and the public. He said the revised strategy for the primary sector covers 11 areas, including modern technological applications, attracting younger people into the profession, agricultural education and the creation of better conditions for fair and stable incomes. The strategy also covers the production and marketing of high-quality products. Concluding, Christodoulides said the government would continue supporting both CAPO and the agricultural sector and would do everything possible to assist farmers. He linked the government’s ability to provide further support to what he described as responsible economic management, pointing to Cyprus’ economic growth, unemployment levels, sovereign credit ratings and fiscal position. He said Cyprus currently has one of the highest growth rates in Europe, while unemployment has fallen to levels last seen in 2008. Christodoulides also noted that Cyprus is now rated in the “A” category by all major credit rating agencies and is running a fiscal surplus. These gains, he said, are being channelled into areas affecting everyday lives of citizens and farmers.