Farmers, disappointed with their crop this year are looking forward to 2007 and considering options, including sticking with cotton and hoping for better weather, shifting to corn or durum wheat, or even abandoning farming.
Following the recent European High Court ruling in September, 2006, which held that the EU's cotton aid regime must be scrapped, Greek Cotton Farmer Organizations urged the GOG to take action in Brussels.
Farmer organizations in Spain, Portugal, Italy and France have also encouraged their governments to support action in Brussels. The EU cotton program, which was drawn up after difficult negotiations in 2004, favored a subsidy system coupled to production.
According to the press and other sources, the EU-executive bodies will begin working this fall to respond to the ruling, most likely including an impact study.
Greek Cotton Farmer Organizations are closely monitoring any related developments. Reportedly during the week of October 30th, Spanish efforts to pressure for new reform of the cotton CAP broke.
The failure could primarily be attributed to friction between farmers and millers over the low starting prices, reported at 0.21 Euros/Kg.
Such EU policy developments will determine the size of the Greek cotton crop in the coming years, and could result in adverse socioeconomic impacts that are difficult to quantify at this stage.
United States Department of Agriculture Foreign Agricultural Service
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