Press Release: Global Food Price Rise: Commission proposes special financing facility worth €1 billion to help developing country farmers

On 18 July, 2008, the European Commission proposed to establish a special 'facility for rapid response to soaring food prices in developing countries'. The fund would be worth €1 billion and would operate for two years, 2008 and 2009. This money would be in addition to existing development funds and would be taken from unused money from the European Union's agricultural budget. It would be provided to developing countries which are most in need, based on a set of objective criteria. The facility would give priority to supply-side measures, improving access to farm inputs such as fertilisers and seed, possibly through credit, and to safety net measures aimed at improving productive capacity in agriculture. The support would be paid via international organisations, including regional organisations. The proposal fell under the co-decision procedure and the Commission hoped that Council and Parliament can reach agreement by November in order not to lose the unused 2008 money.