EU may give €1 billion to Third World farmers

EU taxpayers could help finance struggling farmers in developing countries by up to €1 billion by doling out unused agricultural subsidies, a senior EU official said. In theory, the EU farm cash would be sent over the next year or two via international organisations like the United Nations and World Food Programme to help small producers in developing countries buy seeds and fertilisers.

"There will be savings this year although it's too early to know exactly how much there will be," a senior European Commission official told reporters, adding that the range was likely to be between 500 million and €1 billion.

"I don't think they (savings) will attain €1 billion. If it is one billion, I doubt (the scheme) can be just for one year; if it's 500 million, it could be a one-year scheme. The political choice will be between one and two years," he said.

The Commission, the EU's executive arm that administers farm and development policy on behalf of the EU's 27 member countries, would present a formal proposal before the summer.