The European Commission (EC) will be releasing a package of measures worth €500m from EU funds to support farmers facing difficulties due to inconsistent prices in the markets, especially in the dairy sector.

The package contains a scheme to incentivise a reduction in milk production, and conditional adjustment aid to be defined and implemented at Member State level out of a menu proposed by the commission.

The package also includes a wide range of technical measures to provide flexibility, cash-flow relief and also to strengthen the safety net instruments.

"Coming at a time of significant budgetary pressures, this package provides a further robust response."

Agriculture and Rural Development Commissioner Phil Hogan has presented the measures to the Council of EU Agriculture Ministers.

Hogan said: "Coming at a time of significant budgetary pressures, this package provides a further robust response, and means that the Commission has mobilised more than €1bn in new money to support hard-pressed farmers.

“Our ultimate goal is to see the much needed recovery of prices paid to farmers, so that they may make a living from their work and continue to provide safe, high-quality food for citizens, as well as their contribution to rural areas and rural jobs and the provision of public goods."

The exact details of all the different measures will be finalised in the coming weeks, in consultation with Member State experts. The proposed measures will be incorporated in an amending letter to the draft budget next year.