Due to the war in Ukraine, grain prices have risen sharply. In the EU, there are currently discussions to suspend the minimum fallow land target of 4 percent, which is planned for the beginning of the new funding period of the Common Agricultural Policy (CAP) in the EU, and instead to extend production to already existing fallow land.
This policy paper on hand shows that a reduction in fallow land would only have a minor effect on the world market price for grain. Therefore, it would be better to provide financial aid to the most vulnerable countries in the Global South to enable them to import food in the short term.
Table of contents
2 EU fallow scenarios
3 Quantity and price effects