European Union to Cut Farm Food Prices

The European Union agreed to cut agriculture product prices by up to 20%, though ministers failed to answer the question of how the EU’s $44.6-billion farm subsidy program will be paid for. Farm ministers agreed to cut minimum grain and beef prices by 20% , with a 15% cut in milk prices to follow in four years. The EU’s 7 million farmers will get higher subsidies to compensate them for the cuts. Ministers shied away from deciding how to bring farm spending in line with limits set by EU finance ministers. The EU needs to reduce its export subsidies before World Trade Organization talks this year to head off accusations that EU producers have an unfair advantage in world markets.