EC Farm Ministers to Resume Price Talks

European Community (EC) agriculture ministers resume discussions in Luxembourg tomorrow on tough 1987/88 farm price proposals from the bloc"s executive Commission with only thin hopes of reaching a quick agreement.

Their current chairman, Belgium"s Paul de Keersmaeker, promised at the end of the group"s last meeting that if agreement appeared in sight this week, he would keep his colleagues at the negotiating table for long days and nights.

But one diplomat told journalists: “I don"t think you need to worry about that. We are a long way from the crunch yet.”

The commission has tabled a series of proposals which farm experts say would together amount to the most swingeing attack on overspending on the bloc"s Common Agricultural Policy, and the biggest blow to farmers" incomes, in years.

As well as cuts in common farm prices of 2.5 pct in the key cereals sector, quality standards for farm goods sold into EC surplus stores would be raised and the period of the year when such sales were allowed restricted.

The experts say prices received by farmers would be cut by over 10 pct for many crops if such measures were agreed.

The effects, however, would be mitigated by Commission proposals unveiled on April 14 for generous cash grants to farmers worst hit by the struggle to curb EC food surpluses.

When ministers met on March 30 and 31 in Brussels for initial discussions on the farm price package, several, notably France"s Francois Guillaume and West Germany"s Ignaz Kiechle, said the proposals were unacceptably tough.

Only the Dutch and British delegations gave general support to the Commission line that such drastic measures were necessary to curb surplus food production in the EC and to reduce the massive cost of the CAP.

But even then, the British are among several delegations which oppose the Commission"s controversial plan to raise two billion European Currency Units through a tax on imported and EC-produced oilseeds and fats.

In order to seek common ground, de Keersmaeker plans to spend the whole of tomorrow in bilateral meetings with each of his colleagues in turn.

Diplomats said although the ministers will meet together on Tuesday, de Keersmaeker is likely to conclude that further talks at the level of officials are necessary and that the hard bargaining will have to wait until May.