Farmers' Association: EU membership poses significant risk to Icelandic agriculture

Icelandic farmers are likely to oppose European Union membership, with the Farmers' Association of Iceland stating that all arguments point towards this stance. The association's formal position will be decided at their agricultural assembly on August 14.

A new report from an inter-parliamentary committee highlights significant concerns for Icelandic agriculture should the country join the EU. The report concludes that securing substantial, long-term exemptions from the EU's common agricultural policy is improbable. Adapting to EU regulations would necessitate a complete systemic overhaul of Icelandic agriculture, impacting its fundamental aspects.

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Iceland is a wealthy nation and there is little, if any, chance that Icelandic agriculture will receive more within the EU than we are currently enjoying. That is simply the nature of the union's agricultural policy and system.

Trausti Hjálmarsson, chairman of the Farmers' Association, views potential EU accession talks as a considerable risk to Icelandic agriculture. He emphasized the need for caution following a potential August referendum. Hjálmarsson noted that Iceland, being a wealthy nation, is unlikely to receive more financial support from the EU than it currently does under its existing system.

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Our greatest concern is the decoupling of agricultural subsidies from actual production, and we believe it is extremely important for an island nation like Iceland to maintain production volume for the domestic market, which is also a matter of national security.

Unlike Iceland's current production-linked support through agricultural agreements, the EU's system primarily supports land use and environmental actions. Farmers are particularly worried about decoupling agricultural subsidies from actual production. They believe maintaining domestic production levels for the internal market is crucial for national security, especially for an island nation.

The report examined Finland's agricultural development post-EU entry in 1995. While Finnish farmers received special support for natural disadvantages, their economic situation worsened. Despite a drop in food prices, producer prices and farmer incomes fell by approximately 40% due to adaptation to the common agricultural policy. The EU has been shifting production southward and eastward, making it difficult for agriculture in regions like northern Europe to thrive.

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The European Union has been systematically shifting production further south and east in the continent, and there is nowhere in the European Union where agriculture in...