European Commission: The Common Agricultural Policy after 2020.
The European Commission in Portugal, issued a Communication on the Common Agricultural Policy after 2020 which talks about “The future of food and agriculture”, leaving the question: Because a new reform is necessary?
The Common Agricultural Policy (PAC) It is one of the oldest policies of the European Union (EU), fully met its original objectives of ensuring the supply of food of good quality, Secure and affordable, supporting, simultaneously, European farmers.
The CAP has undergone several reforms since 1962, and its adaptability is what continues to ensure its relevance. The world is changing rapidly and so do the challenges faced not only farmers but our societies as a whole.
Climate change, price volatility, political uncertainty and economic, the growing importance of world trade: every day, farmers have to learn to operate in a changing environment and it is up to the legislator accompany them during these changes and provide legal clarity and simplicity, medium and long term.
The European agricultural policy made the EU in the agrifood superpower that is currently: the EU is the leading exporter agrifood worldwide, It has an unparalleled reputation with regard to its culinary heritage and food, as well as the know-how of its producers. But the EU can not confine itself to rest on its laurels: the success can also hide many individual difficulties.
The CAP has to lead the transition to a more sustainable agriculture, should contribute to promoting the sector's resilience in times of crisis and supporting incomes and the viability of farmers. You need to fully incorporate the digital innovations that facilitate the daily work of farmers, reduce bureaucracy and may boost the indispensable generational renewal in industry. The CAP should strengthen European rural areas, at the heart of our European traditions and the family farm model.
Today's Communication provides guidance to achieve these goals and to address the emerging challenges, through a less prescriptive approach and greater subsidiarity at the level of Member States, in order to make the nearest CAP of those who puts it into practice on the ground.
How is it possible to discuss the revised policy without knowing what will be the budget or the next multiannual financial framework (QFP)?
Money is a means to an end. The Communication looks at how to improve the cost-effectiveness of the common agricultural policy. It is time to reflect on our goals and the future architecture of the policy. The debate may proceed on this basis without harming the Commission's proposal for the next Multiannual Financial Framework (QFP), scheduled for May 2018.
For that reason Communication does not analyze in more detail some aspects?
The Communication draws attention to the challenges and opportunities ahead, It provides guidance and indicates new avenues to explore. It will be necessary to intensify the debate and further work in the coming months to advance the suggested routes and refine the concepts. In line with the Communication, defining an approach less and more rules based on subsidiarity, the Commission intends to continue the discussion on practical aspects with a wide range of stakeholders and co-legislators.
What are the next steps?
Over the coming months, discussion and work on the concrete objectives, the architecture and the design of future policy will advance in parallel with the work on the next MFF. The work will take, namely, the form of an impact assessment, which will explore different options from the evidence gathered with stakeholders and citizens (for example, public consultation in 2017, the Re-Fit contributions , conferences "Cork 2.0 'and' The CAP: Give your opinion") and intensify the collection and processing of data. Following the presentation of the Commission proposal for the next MFF, scheduled for May 2018, They are planned legislative proposals on the future CAP before the summer 2018.
How the future CAP will be simpler for farmers and administrations of the Member States?
Who wants to measure their hedges because "Brussels said to do»? Why an Italian farmer and a Finnish farmer, They are working in very different conditions, must respect the same environmental requirements?
The future CAP will define common goals and a common set of measures to achieve the. From this set of measurements, Member States, at national or regional level, You can choose the range of options they prefer to achieve the objectives set at EU level.
This transition from a single model for an individualized approach means that EU requirements will be kept to a minimum. The actual needs on the ground will be evaluated and incorporated by the Member States in the CAP's strategic plan approved at EU level. We intend to establish a pact of trust with our rural areas, with our farmers.
Strengthening of farm advisory services for farmers and the full implementation of geospatial aid application will also continue, of course, to support the simplification of aid applications and the implementation of investment measures.
In what consist this approach in practice?
The Union should set the policy of the basic parameters, based on the objectives of the CAP, fulfilling the obligations under the EU Treaty, but also the objectives and targets already agreed, associated, for example, the environment and climate change (COP 21), and the various goals of sustainable development.
Each Member State should establish a "strategic plan of the CAP ', interventions covering the first and second pillars. This plan will allow modular interventions of the CAP in order to maximize their contribution to EU objectives taking into account more adequately the local conditions and needs, meet these objectives and targets. Simultaneously, Member States should also have a say regarding the fulfillment of frame design and control applicable to beneficiaries (including control and sanctions).
These strategic plans are not prepared in isolation but as part of a structured process, and the Commission will assess them and approve them. This will maximize the contribution of the CAP to the priorities and EU objectives and the achievement of the goals of the Member States relating to climate and energy, further reinforcing the added value of the EU and preserving the good functioning of the internal agricultural market.
While Member States should take more responsibility for how it fulfills the goals and targets agreed, the new approach will continue to ensure a level playing field, preserving the common nature and the two pillars of the policy.
This is the first step towards renationalisation of the CAP?
This European added value has never been called into question and the CAP remains the EU's flagship policy. The recognition that the same solution is not appropriate for all shows pragmatism. What are the local realities? What specific circumstances of farmers? It is to recognize the variety of situations in the EU with regard to agriculture, the agricultural production potential and climate conditions, environmental and socio-economic. We have to accept our diversity rather than trying to impose a single model.
The contributions collected during the public consultation carried out online at EU level between February and May 2017 resolutely supported the added value resulting from the management of agricultural policy at European level, since this ensures equal conditions in the single market. a common European approach to agriculture can provide a more effective response to common challenges such as environmental protection and climate action is needed. Another challenge was also often highlighted the need to maintain economic, social and territorial cohesion across the EU, as well as to create a common framework for the exchange of best practices.
Although the modalities for implementing the measures are decided at national or regional level, the EU will provide a well-defined regulatory and fiscal framework to ensure that our common goals are achieved through common tools, in line with the EU treaties, and comply with the EU's international commitments on climate and sustainable development.
What is the relevance of the CAP for the environment?
Agriculture occupies about half the land area of the EU, therefore it works in close relationship with the environment. On the one hand, depends on various natural resources - ie, or only, the water, air and biodiversity - and it is strongly influenced by the weather. For another, agriculture shapes the environment in which it is practiced, not only through the way we use natural resources, but also creating and preserving landscapes that reflect our European diversity and provide essential habitats for wildlife.
The CAP is vital to maximize the mutual benefits of the relationship between agriculture and the environment and climate. In some cases, also provides support to non-agricultural businesses established in rural areas that can influence the environment - for example, the forestry sector and other sectors of the bio-economy.
The future CAP should promote and support climate-smart agriculture, putting sustainability at the heart of its priorities and actions.
How will the future CAP help farmers to protect the environment?
As a basic principle, farmers receiving income support from the CAP will have to implement several practices that respect the environment and climate. Member States shall determine details of these practices - in line with the need to meet the objectives set at EU level, but also taking into account national circumstances, Regional and local. The system will be based on the current strengths of the CAP, but will be based on EU law under complex rules and fewer.
Ecological measures that go beyond this initial level of good practice will be supported through voluntary programs for farmers - at a relatively basic level, and a higher level, through more advanced programs. Once again, Member States will be responsible for the design of programs, in order to meet the EU targets translated into national terms, Regional and local.
The PAC also put emphasis on the exploitation of the research potential, innovation, training and use of advisory services to improve environmental protection and climate action, inter alia through a more efficient use of resources.
If we trust the United States to meet environmental commitments, how to ensure a level playing field for farmers? Let's end 28 different systems?
Today's Communication marks a radical and significant change in the implementation of the CAP. Respecting the commitment to more subsidiarity and less complexity, scrutiny by the Commission of national / regional plans will ensure that the selected options are not manifestly erroneous or inadequate to meet the performance objectives and basic requirements of the EU. The Commission should review and approve the national / regional strategic plans, to maximize the contribution of the CAP to the priorities and EU objectives and the achievement of the goals of the Member States relating to climate and energy. This is important to ensure the maintenance of a common approach to the achievement of objectives relating to the environment and climate in all Member States. Greater ambition is the only viable option in this matter.
The Commission will also maintain its essential function as guardian of the Treaties and responsible institution ultimately by the EU budget management and, as an integral part of the screening process of national / regional plans, the Commission will carefully examine the best way to avoid over-regulation.
will-keep the two pillars (direct payments / market measures and rural development)?
The two pillars are two complementary aspects of the CAP, keep matters, since the CAP structure around two major categories of essential interventions. The first pillar supports farmers on an annual basis, in the form of direct payments and market measures, which are subject to compliance with the basic rules and environmental objectives. The second pillar is a tool of multiannual and flexible investment, adapted to local realities of each Member State, especially intended to support longer-term projects.
How can we ensure that the future CAP will be fair and that small and medium-sized farms will receive the support they need?
In 2015, first year of implementation of the last reform of the CAP, 20 % farmers received about 80 % of direct payments. This raises understandable concerns of economic efficiency and social equity in the public debate.
Indeed, this reflects the concentration of land and nature of support, which is based, largely, on the surface. Besides, more than half of its beneficiaries are farms very small and most of the payments (72% in 2015) intended to family commercial farms medium-sized (5 a 250 He has), that generate most of EU agricultural land (71 %), thus it is primarily responsible for the provision of public goods and environmental benefits.
Yet, the Commission is committed to exploring the possibilities of guiding the direct payments more effectively and ensure a more equitable and better targeted support to the income of farmers across the EU, as pointed out in the discussion paper on the future of EU finances. Para of, suited to explore the following non-exhaustive list of possibilities: A mandatory limitation of direct payments, taking into account the work in order to avoid negative effects on employment; Introducing progressively reduced payments as a way to reduce support for larger farms; Favoring a redistributive payment to enable the provision of support in a targeted manner, for example small and medium-sized farms and ensure support to genuine farmers, focused on those who actively practice agriculture in order to ensure their livelihood.
Farmers will be treated the same way across the EU?
At the same time ensuring that support is directed to the genuine farmers, focusing on those who actively practice agriculture in order to ensure their livelihood, the CAP must also play their part by following the principles of "equality between its Member States, large or small, East or West, North or South », which were recalled by Juncker in his speech on the State of the Union 2017.
In this sense, matter reduce the differences between Member States in the field of CAP support. Although the wide range of costs of skilled labor and land, as well as the agronomic potential differences in the EU should be recognized, all EU farmers face similar challenges with regard to market volatility, the environment and climate.
What is the role of the CAP in promoting rural prosperity?
The action of the CAP aims to not only the agricultural sector, helping to boost local rural economies and increase prosperity in rural areas. Rural development funds can, namely, support the creation of a craft activity. The support Country new value chains such as clean energy, to emerging bioeconomy, the circular economy and eco-tourism, investments in infrastructure, in natural and human capital, including vocational training and programs aimed at the development of new skills, of quality education and connectivity may lead to new job opportunities and increasing the growth potential in rural areas. The new concept of 'smart villages<https://ec.europa.eu/agriculture/sites/agriculture/files/rural-development-2014-2020/looking-ahead/rur-dev-small-villages_en.pdf>»Will help communities address the issues of inadequate infrastructure and employment opportunities.
How can the Commission encourage the establishment of young farmers and generational renewal in the sector?
The renewal of generations must become a priority in a new strategic framework, but it is the Member States that are in the best position to encourage generational renewal, using their powers in land regulations, taxation, inheritance law or planning. The CAP should allow flexibility to Member States to develop systems tailored to reflect the specific needs of their young farmers.
The strategic plans of the CAP could include supporting the development of skills and knowledge, innovation, business development and investment. The CAP should also help to mitigate the risks in the first years after the release of a farm, providing a system at the level of EU aid to the first installation. It should also facilitate access to financial instruments in order to support farm investments and working capital, adapting it better to the higher investment needs and risk profiles of new operators. Support for the new generation of farmers could be combined with appropriate incentives to facilitate the exit of the older generation and transfer of knowledge between generations, and to increase the land mobility and facilitating planning succession.
Why is the CAP needs to support innovation? What is the justification?
The agriculture and our rural areas face a number of challenges for which we must find new solutions. We need better advice and more innovation. Public participation in research and innovation is needed to bridge the gap between rural areas, who want better connectivity and digital innovations, and the suppliers of new technologies.
The introduction of sensors, for example, would detect and prevent animal health problems and reduce the need for treatment. The real-time access to information on the intensity of sunlight, soil moisture, markets, the effective management and other allows farmers to make better decisions faster.
Cooperation in research and innovation at EU level makes sense, as to learn from each other in different parts of the EU can develop better knowledge and adopt faster innovation.
When faced with the volatility and market crises, what support farmers can expect from the future CAP?
Whether SPS crises, events related to climate changes or market volatility, farmers face high risks and great pressures on earnings. The Commission has always supported and will continue to support farmers, as shown by the last two packages solidarity, of 500 million euros each; yet, the highest frequency of risk requires a more systematic approach.
The agricultural sector needs an appropriate framework for risk management, combining support at EU level with the national instruments of the Member States and the private sector tools.
The possibility of creating a stabilization tool of specific earnings by sector, namely, with thresholds lower losses to trigger the compensation should make it more attractive, both farmers and administrations. Simultaneously, it is necessary to carefully consider the need to introduce new instruments or types of support. In this context, should encourage cooperation between farmers and stakeholders throughout the food chain, including pooling and integrated services, for the purpose of sharing risks.
This implies a platform in the field of risk management at EU level?
The reduced information of farmers and other stakeholders about the tools available and their relative lack of experience in their use has been a major obstacle to the acceptance of risk management instruments in recent years.
The platform in the field of risk management at EU level will bring together all stakeholders, from farmers and public authorities, research institutes and private sector stakeholders (insurance, for example) with a view to sharing knowledge and exchanging best practices.
The Commission will, as required, as facilitator and develop the platform on a specific website.
The platform under, expert panels will be arranged, working groups, seminars and events around specific issues related to risk management, for example the calculation of losses by using systems based on indexes. Besides, the platform will offer the possibility of bringing together private and public initiatives in the field of risk management at local level, as well as the relevant work in other policy areas, for example, adaptation to climate change, agrometeorologia, etc.
Why is the CAP should stimulate investment and how financial instruments can support farmers?
A flexible investment instrument under the CAP is essential to support the competitiveness, innovation, mitigation and adaptation to climate change and, in the last instance, the sustainability of agriculture and rural areas. The modernization of a farm, the introduction of new technologies, the renovation of irrigation systems are actions that require a lot of money at the beginning and represent considerable financial efforts that farmers can hardly take much alone. Public funds available for grants are not enough to meet growing industry needs investment. According to rough estimates, the market gap for financing agriculture is between 1,6 billion and 4,1 billion in the case of short-term loans, and between 5,5 billion and 14,8 billion for long-term loans.
Financial instruments such as loans, guarantees and equity funds can facilitate access to finance for farmers (for example, small farmers, newcomers, etc.) or agri-food producers, who have difficulty in obtaining the necessary funds to start or develop activities. The combination of EU funding and private will have a multiplier effect, increasing the volume of investment ("Leverage effect").
