Impact of Greece’s bailout on agriculture

Could cost €2 billion per year

By Diego Flammini, Farms.com

The Pan-Hellenic Confederation of Unions of Agricultural Cooperatives (PASEGES) estimates that Greece’s bailout could cost the country’s agricultural sector around €2 billion ($2.25 billion USD) per year.

There are many ways Greek farmers could be impacted, including:

• Direct taxation of all subsidies which cancels the current exemption for incomes under €12,000 ($13,193 USD)
• The current tax rate will increase from 13% to 26%, resulting in farmers paying approximately €200 million ($219,985,700 USD) more than before
• Farmers could lose a fuel tax benefit valued at €183 million ($201,309,058 USD)
• Farmer insurance costs could go up by €1 billion ($1.1 billion) per year
• The value added tax for agricultural supplies could increase from 13% to 26%, accounting for another €283 million ($311,636,897 USD) in costs

“Measures required by our country’s bailout agreement with the creditors are very harsh and will overwhelm Greek farmers,” PASEGES President Tzanetos Karamihas said in a press release on Monday, July 13^th. “The Greek agricultural sector needs political stability at this moment and a new production reform and strategic plan.”

It was also on July 13^th that leaders of the Eurozone reached an agreement on an €86 billion ($94,647,284, 627 USD) bailout, the third one aimed at saving Greece from bankruptcy.

Canada’s Top 5 Agricultural Exports to Greece (2010)

1. Raw mink ($15.1 million)
2. Lentils ($7.9 million)
3. Beans, dried ($5.1 million)
4. Pet food (dog/cat) ($1.5 million)
5. Wheat or meslin flour ($910,135)

Canada’s Top 5 Agricultural Imports from Greece (2010)

1. Olive oil, virgin ($10.7 million)
2. Olives, prepared and preserved ($9.1 million)
3. Olives provisionally preserved ($6.8 million)
4. Cheese ($6.3 million)
5.  Fruits/vegetables/nuts ($4.1 million)