CAP Reform Proposals Revealed In Brussels

The European Commission (EC) has today proposed what it describes as a new partnership between Europe and its farmers - and a reform of the Common Agricultural Policy (CAP) for the period after 2013.

In Brussels, a draft reform was presented which, they said, aims to strengthen the competitiveness, sustainability and permanence of agriculture throughout the EU in order to secure for European citizens a healthy and high-quality source of food, preserve the environment and develop rural areas.

"The EC is proposing a new partnership between Europe and its farmers in order to meet the challenges of food security, sustainable use of natural resources and growth.

"The next decades will be crucial for laying the foundations of a strong agricultural sector that can cope with climate change and international competition while meeting the expectations of the citizen," said an official statement.

"Europe needs its farmers. Farmers need Europe's support. The Common Agricultural Policy is what feeds us, it's the future of more than half of our territory," said Dacian Ciolos, Commissioner for Agriculture and Rural Development.

The reformed CAP will make it possible to promote innovation, strengthen both the economic and ecological competitiveness of the agricultural sector, combat climate change, and sustain employment and growth.

"It will thus make a decisive contribution to the Europe 2020 strategy," he claimed this morning.

It will mean targeted income support in order to stimulate growth and employment and to support farmers' income in a fairer, simpler and more targeted manner.

Basic income support will affect only active farmers. It will reduce gradually from €150,000 (degressivity), with a ceiling of €300,000 per farm per year, and will take account of the number of employees created by holdings.

It will also be more fairly distributed among farmers, regions and Member States.

There will also be more responsive and adequate crisis management tools in order to meet new economic challenges

The volatility of prices is a threat to the agricultural sector's long-term competitiveness, so the Commission is proposing more effective and more responsive safety nets for the agricultural aspects of the supply chain that are most 'at risk' of crisis (private storage and public intervention) and to promote the creation of insurance and mutual funds.

Green

In order to reinforce the ecological durability of the agricultural sector and enhance the efforts of farmers, the Commission is proposing to dedicate 30% of direct payments to practices, which enable optimal use of natural resources.

Those practices, which are easy to implement and are ecologically efficient, are: crop diversification, maintenance of permanent pasture, preservation of ecological reserves and landscapes.

In order to put in place knowledge-based farming and competitive agriculture, the Commission is proposing to double the agronomy research and innovation budget and to take steps in order to ensure that the research results are translated into practice by means of a new partnership for innovation.

As agriculture is at the base of the food chain, but it is highly fragmented and unstructured, the Commission proposes to support producer organisations and inter-branch organisations and to develop 'short circuits' between producers and consumers.

Furthermore, the sugar quotas, which have lost their relevance, will not be extended beyond 2015.

Two thirds of farmers are over 55, so in order to support job creation and encourage the younger generation to enter the agricultural sector, the Commission is proposing to create new start-up assistance accessible to farmers under 40 during the first five years of their project.

In order to promote employment and entrepreneurship, the Commission is proposing a number of measures to stimulate economic activity in rural areas and encourage local development initiatives.

For example, a 'starter kit' will be created which will provide support for micro-business projects with financing of up to €70,000 over a period of five years and LEADER local action groups will be strengthened.

Finally, to avoid unnecessary additional administrative costs, the Commission is proposing to simplify several CAP mechanisms, including the cross-compliance rules and control systems, without sacrificing effectiveness. Moreover, support for small farmers will also be simplified.

A flat-rate payment will be created for the latter, ranging from €500 to €1,000 per farm per year.

The sale of land by small farmers who cease agricultural activity to other farms willing to restructure their farms will be encouraged.

(BMcC/CD)