Berlin, Sept 19 - Soaring prices for foodstuffs could create an opportunity to wean EU farmers off subsidies, a deputy German finance minister said on Friday.
"Even if we are currently seeing something of an easing, we can expect that in the medium term prices for important agricultural products will stabilise at a high level," Deputy Finance Minister Joerg Asmussen said.
"This means there is a need for policymakers to act because security of food supplies is not only a question of agricultural policy but also directly affects many areas of policy," he said in the editorial of the ministry's monthly report for September.
"On the other hand, high prices could create a chance for the European farming industry to make an adequate income without subsidies from the European Union," he said.
Asmussen said the situation on international agriculture markets remained tense.
"As well as fluctuations in harvests caused by the weather, rising demand for high-value foodstuffs and the continuing bio-energy boom are contributing to the strong gains in prices for agricultural products," he said.
"The limited farming space and water reserves available are making the situation even more critical," he added.