for sustainable growth » « Paving the way for sustainable growth » 15 June 2016

Key challenges for Europe Remaining a world champion on all market segments Driving a new green revolution – high-performance agriculture Rural growth : key for growth in Europe

Key challenges for EU Agriculture Being competitive again in an increasingly open world : growth & jobs Face climate change and respond to societal demands. Boost investments for all (small to big, local to global, food to non food) Cope with market crisis and high uncertainty. Need of a more European, targeted and efficient CAP

Do European Farmers compete on a level playing field ?

Farm Bill Stabilisation > 50 b$ US competitiveness Farm Bill Stabilisation > 50 b$

EU trends Very low growth 30 % fluctuation

Need for further adapatations of the CAP ? The capacity to boost investments and better structure the food chain. After nearly 30 years – are decoupled payments still the right policy response ? To cope with volatility/crises Encourage investments Decrease environmental footprint Scope to integrate innovation into the greening of the CAP which could be partially turned into an objective based policy ?

How to address volatility in the EU ? 2 pitfalls to avoid : copy-paste : neither US nor 70’s. Populism. Pragmatism, efficiency & EU fitted 3 misconceptions : Decoupled payments are 100 % right answer  current crisis Countercyclical payments are THE answer for the EU : Budgetary aspects : need to double budget in 2016 for cereals + milk sectors  Is it credible ? Increasing by 50 % minimum fixed EU prices for cereal & milk to limit needs of countercyclical payments ( to x 2 in 2016) and related storage of high quantities  Is it doable ? Impacts of such reviewed EU minimum fixed prices on other sectors : cereals to meat  payments to cereal sectors would imply payments to meat sector etc…. CAP lack of efficiency to tackle volatility means all CAP measures have to be called off

How to address volatility? Farm Europe’s current work Without public support, most of EU farms don’t earn money even under “normal market conditions”. CAP payments for economic & envi public goods are legitimate & needed: territorial and environmental challenges. Climate & sanitary risks: Scope to improve EU Farms protection : Need to increase % of insured areas Need to define suitable thresholds Target of 90 % areas, Cost efficiency Markets risks: Insurance schemes : Turn over or gross margin, sectorial approach, link with futures, indicators based, thresholds Incentive Farmers / precautionary savings : Individual based Mutual or sectorial based-> mutual funds Public supports : National : fiscal European : cofinancing ? Enhanced contractual relations & An ambitious EU policy focused on investments and innovation

Livestock sector : short term European measures European tender : implemented at European level, open to all dairy farmers Volontary reduction of production / 2015 Incitative financial « reward «  European rules limiting national financial support (art222, EU financed or State financed) to producers decreasing volontary their production European plan to assist farmers leaving the dairy sector Strategic plan to structure the EU bovine meat sector

@FarmEurope #GFF2016 14/15 OCTOBER 2016, ITALY info@farm-europe.eu