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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

Eurozone and Greece

“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 13th. “The Greek agricultural sector needs political stability at this moment and a new production reform and strategic plan.”

It was also on July 13th 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)

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My name is Michael Wendling. I am a 6th generation farmer in East Central Illinois. We grow white & yellow corn for Frito Lay, and we also grow soybeans. The family farm was established in 1879.