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[BUSINESS] · Germany, EU · 4 sources

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NABU study questions role of EU agricultural subsidies in food security

A study by the Nature and Biodiversity Conservation Union (NABU) challenges the necessity of EU agricultural subsidies for ensuring food security. Using the CAPRI economic simulation model, the study analyzed the potential impact of reforming the Common Agricultural Policy (CAP) starting in 2028, including scenarios where direct payments or all subsidies are abolished.

The findings suggest that removing these subsidies would have a minimal impact on production and self-sufficiency levels. In Germany, crop production volumes could decrease by up to 2.8 percent depending on the scenario, while meat production would see a maximum decline of 0.75 percent. Milk production is expected to remain largely unchanged. For wheat, Germany's self-sufficiency rate would only drop from approximately 134 percent to 129 percent, remaining well above domestic demand.

NABU President Jörg-Andreas Krüger noted that the subsidies appear to have little effect on production volumes, suggesting they may be ineffective in their current form. The study also indicates that current direct payments influence land lease prices more significantly than actual agricultural output.

Entities

Alois Rainer · Capri · European Union · NABU