British and EU flags fly outside the Houses of Parliament in London, Britain, January 30, 2019. REUTERS/Toby Melville

DUBLIN (Reuters) – The European Commission has agreed to compensate Irish farmers for a drop in market value in the event of a no-deal Brexit, the Irish edition of the Sunday Times reported, citing Irish government and EU sources.

Farmers could be eligible for hundreds of millions of euros in emergency aid to help offset the collapse in beef and dairy prices, the newspaper reported. That is the amount Agriculture Minister Michael Creed said last month he wanted for Dublin’s farming and fishing sectors.

The details of the plan were finalized between Creed and the commission’s agriculture chief, Phil Hogan, the report said.

The move, which is similar to the measures taken by Russia when it banned EU agricultural products, could also apply to Dutch and Belgian flower producers and Danish dairy and bacon farmers, all of whom export heavily to Britain, the newspaper said.

Irish Prime Minister Leo Varadkar said this week he had warned the commission that Dublin would seek help for businesses if Britain leaves the European Union without a deal next month, among other possible emergency funding from the EU and within the EU. (nL5N1ZT76Z)

Ireland’s export-driven economy is seen as the most vulnerable of the European Union’s remaining 27 member states to a disruptive exit from its neighbour, given its close trading ties with Britain, particularly in labour-intensive sectors such as agriculture and food.

A spokesperson for the Irish Department of Agriculture was not immediately available for comment.

(Reporting by Padraic Halpin; Editing by Janet Lawrence)