European Union ministers have agreed to grant a billion euros in agricultural aid to developing countries.
African farmers are set to benefit from cash earmarked for the purchase of seed and fertiliser.
European Commission President Jose Manuel Barroso’s plan to provide the cash had run into trouble over financing. It will now be funded mainly from budget reserves.
The deal was reached as negotiators meeting in Brussels fixed the bloc’s overall spending for next year.
Member states have been keen on a lean EU budget as they need to secure funds to boost economic growth amid the financial crisis.
A figure of just over 116 billion euros was set.
It is more than governments proposed but less than the sum advocated by the EU parliament which will give its verdict on the matter next month.