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France offers angry farmers emergency aid France offers angry farmers emergency aid
(about 5 hours later)
The French government has proposed a €600m (£420m; $655m) package of urgent aid for farmers, who have blocked roads for days in protest at falling prices.The French government has proposed a €600m (£420m; $655m) package of urgent aid for farmers, who have blocked roads for days in protest at falling prices.
Most of the money will help farmers deal with a cash crisis by cancelling or deferring tax payments. But some of the money will help restructure debts.Most of the money will help farmers deal with a cash crisis by cancelling or deferring tax payments. But some of the money will help restructure debts.
Farmers, who have been protesting for weeks, say they will consider the plan. Farmers said they would assess the plan but several routes remain blocked.
They accuse supermarkets and the food industry of keeping prices low, forcing many of them into bankruptcy.They accuse supermarkets and the food industry of keeping prices low, forcing many of them into bankruptcy.
One farmers union leader in Normandy said the measures did not go far enough but another union leader, Xavier Beulin of the FNSEA, said ministers were moving in the right direction. One farmers' union leader in Normandy called for the blockade around Caen to be suspended. But key road bridges in the region remained closed to traffic on Wednesday evening and elsewhere the government's intervention appeared to fall on deaf ears.
In the Loire Valley, some 100 protesters lifted their blockade near Chambord castle, but a union official said it was not because they were happy with the government's offer.
Farmers said they would blockade access to France's second city, Lyon, from Wednesday evening. More action was expected further south around Clermont-Ferrand on Thursday.
Traffic on the A1 motorway outside Lille in northern France was hit by protests from early on Wednesday.
In Brittany, some 200 farmers attacked a supermarket in Lannion late on Tuesday night, dumping manure at the entrance and setting alight to tyres.
Xavier Beulin of the FNSEA union said ministers were at least moving in the right direction.
"We've just accepted measures for Greece; I reckon we can do something for French farmers," Mr Beulin said, equating his members' struggle with the eurozone debt crisis."We've just accepted measures for Greece; I reckon we can do something for French farmers," Mr Beulin said, equating his members' struggle with the eurozone debt crisis.
Major roads have been blocked near Poitiers in the west, but the farmers' anger was most visible in Normandy and Brittany.
Some 200 farmers attacked a supermarket in the Breton town of Lannion late on Tuesday night, dumping manure at the entrance and setting alight to tyres.
Mr Beulin had earlier accused the government of adopting only "trivial measures", warning there was "a sort of exasperation and anger that's been escalating for weeks. This hasn't come out of nowhere".Mr Beulin had earlier accused the government of adopting only "trivial measures", warning there was "a sort of exasperation and anger that's been escalating for weeks. This hasn't come out of nowhere".
President Francois Hollande called a cabinet meeting over the crisis after farmers partially blocked the A1 motorway south of Lille, threatening more severe action if ministers failed to come up with a satisfactory response. Announcing a 24-point plan, Prime Minister Manuel Valls said:
Announcing a list of 24 measures, Prime Minister Manuel Valls said €100m of taxes would be annulled and a further €500m would be set aside to allow farmers more time to pay taxes and other debts.
A fund to help farmers restructure their debts would be increased from €8m to €50m and the public investment bank (BPI) would guarantee up to €500m in loans to the farming sector in a further attempt to alleviate the cash crisis.
"The demonstrations of the past days reflect the anguish and distress that we have seen for some time. We want to respond to this anguish," the prime minister said."The demonstrations of the past days reflect the anguish and distress that we have seen for some time. We want to respond to this anguish," the prime minister said.
The Socialist government estimates that 10% of French farms could be facing bankruptcy.The Socialist government estimates that 10% of French farms could be facing bankruptcy.
Last month, ministers pushed the food industry to raise the prices paid to farms but Mr Foll said last week that pork producers were still being paid below the target price of €1.40 (£1) per kilo.Last month, ministers pushed the food industry to raise the prices paid to farms but Mr Foll said last week that pork producers were still being paid below the target price of €1.40 (£1) per kilo.
Dairy farmers say they are being paid €300 per tonne of milk and need at least €340 to break even.Dairy farmers say they are being paid €300 per tonne of milk and need at least €340 to break even.
"I solemnly call on industry and major suppliers to respect the increase in prices that they committed themselves to. There cannot be a frantic rush to low prices," Mr Valls told reporters."I solemnly call on industry and major suppliers to respect the increase in prices that they committed themselves to. There cannot be a frantic rush to low prices," Mr Valls told reporters.
Supermarkets and suppliers are being blamed for not passing on the recent price rises on meat and dairy products. But prices have been pushed down by foreign competition and reduced meat consumption.Supermarkets and suppliers are being blamed for not passing on the recent price rises on meat and dairy products. But prices have been pushed down by foreign competition and reduced meat consumption.
A Russian ban on EU food imports and reduced Chinese demand have added to the problems.A Russian ban on EU food imports and reduced Chinese demand have added to the problems.