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Press Release no.16 Agriculture. The food deficit, the primary sector increasingly more at the center of the global economy We are entering an era of food shortages. World demand for food is greater than what the world can produce. This is the picture painted by the chairman of the European Parliamentary Agriculture Commission, Paolo De Castro, speaking today at EIMA International. The commission chairman emphasized that agricultural production has become an issue of extraordinary importance for the markets, as shown by the further increase in commodity prices recently to reach alarm levels. “The world is changing and all this is creating market dynamics but also very strong political worries about what the capacity of the planet will be for satisfying this growing demand,” De Castro said. In the context in which productivity becomes a fundamental factor for improving agricultural yields, the agricultural mechanization sector is thus called on to play a leading role. For the Italian companies, which demonstrate great vitality and an enormous capacity for adapting their production to meet foreign demand, the scenario is chiaroscuro. Exports are growing but the domestic market is still at the starting gate. As De Castro pointed out, though 75% of the tractors in Italy have been on the job for more than 25 years, the country’s machinery inventory is finding no margin for investments. The commission chairman noted that in France and Germany incomes are gaining whereas they are falling in Italy. Even in years when the prices of farm products increase no gains are reported for agricultural income. This is a snapshot of the inefficient organization of the Italian system. In this connection, the measures written into the Rural Development Plans for agricultural mechanization provide important support for the primary sector. However, as underscored by FederUnacoma and ENAMA, more than a few difficulties carrying the risk of the disengagement of these funds are reported. This disengagement mechanism is expected to be definitively changed in the new Regional Development Plans for 2014-2020. De Castro said, “The European Union has already introduced a norm which radically modifies the matter of disengagement in the member states which opt for the RDP at the regional level; in the future plans there will be no regional disengagement. Unspent funds will not be returned to Brussels but go to Rome.” In other words, unutilized funds will be redistributed to the most virtuous regions as awards for the best practices of the more efficient administrations. Bologna, November 9, 2012