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The “Health Check” of the CAP reform: Legislative proposals

The “Health Check” of the CAP reform: Legislative proposals. DG for Agriculture and Rural Development European Commission. Assessing and adjusting the CAP today (1/3). The present context Significant increase in food prices re-focuses attention on agriculture

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The “Health Check” of the CAP reform: Legislative proposals

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  1. The “Health Check” of the CAP reform: Legislative proposals DG for Agriculture and Rural Development European Commission

  2. Assessing and adjusting the CAP today (1/3) • The present context • Significant increase in food prices re-focuses attention on agriculture • CAP already introduced short-term adjustments to respond to crisis • “Health Check” proposals fine-tune the CAP reform

  3. Assessing and adjusting the CAP today (2/3) • CAP is today a radically reformed and better performing policy • Support is now mainly decoupled, and subject to cross-compliance • Role of intervention mechanisms is significantly reduced • Rural Development policy is strengthened with funds and policy instruments

  4. EU-10 EU-12 EU-15 EU-25 EU-27 CAP expenditure and CAP reform path

  5. Assessing and adjusting the CAP today (3/3) • The “Health Check” fine-tunes CAP reform to • Make the Single Payment Scheme more effective, efficient and simple • Adapt market instruments to meet new market opportunities • Respond to new and ongoing challenges (climate change, bio-energy, water scarcity, biodiversity)

  6. Direct support (1/2) • Flatter rate in Single Payment Scheme (SPS) • MS allowed to move to flatter rates of support • For new MS, possibility to apply Single Area Payment Scheme (SAPS) until end of 2013 • Simplification of the SPS including abolition of set-aside • Set-aside entitlements abolished, become normal entitlements • Rules of direct payments simplified • Lower payment limitations introduced • Cross compliance • Deletion of redundant provisions and articles not relevant to farming activities • Addition of provisions in list of Good Agricultural Environmental Conditions (GAEC)

  7. Direct support (2/2) • Partially coupled support and other aid schemes • Full decoupling to a series of sectors from 2010 • MS allowed to maintain coupled support for suckler cows, sheep and goats • Abolition of energy crop premium • Revised Article 69 measures • Extend financing of revised Article 69 • Target measures to economic/environmental disadvantages in certain regions/sectors • Allow MS to support risk management measures

  8. Market measures • Milk quotas • Increase milk quotas by 1% annually from 2009 to 2013 • Review clause in 2011 to assess market developments • Cereals • Bread wheat intervention remains with no quantitative limits • Quantitative ceilings set to zero for all coarse grains • Durum wheat intervention abolished • Other intervention measures • Rice and pig meat intervention abolished • Dairy intervention through tendering also within fixed ceilings • Specific support schemes • Decoupling of processing aid with transitional periods

  9. Rural Development • Address new and ongoing challenges: climate change, bio-energy, water scarcity, biodiversity • MS should use additional modulation exclusively to reinforce existing measures for these challenges • aiming for at example reducing emissions, improving water management, protecting wildlife • More funding via additional, progressive modulation

  10. In conclusion, the Health Check… • Simplifies and better targets direct support to farmers • Responds to market opportunities and price crises by removing supply controls • Strengthens Rural Development policy to respond to new challenges

  11. For further information • CAP Health Check http://ec.europa.eu/agriculture/healthcheck/index_en.htm • EU agriculture and CAP reform http://ec.europa.eu/agriculture/index_en.htm • Economic Analysis and Evaluation http://ec.europa.eu/agriculture/analysis/index_en.htm • Agricultural Policy Analysis and Perspectives http://ec.europa.eu/agriculture/analysis/perspec/index_en.htm

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