The Health Check decisions on the CAP: Water-related measures in first and second pillars Strategic Steering Group WFD and CAP, 19/03/2009 René L‘Her, DG Agri H1, Environment, GMO and genetic resources SSG WFD/CAP, March 2009

Outline of the presentation Existing CAP instruments in relation to water First pillar (Market and income policy) Second pillar (Rural development policy) Health Check decisions First pillar Second pillar SSG WFD/CAP, March 2009

Existing CAP measures related to water (1/2) First pillar: Cross-compliance: Nitrates and Groundwater directives part of Statutory Management Requirements (water quality) Fruit and Vegetables Operational Programmes: Some measures targeted to water SSG WFD/CAP, March 2009

Existing CAP measures related to water (2/2) Second pillar Agri-environment Investments (e.g. to improve efficiency of irrigation) Training Restoring agricultural and forestry production potential damaged by natural disasters (floods) and introducing preventive actions SSG WFD/CAP, March 2009

Health Check: adressing the New Challenges (1/2) The Health Check identified : climate change, renewable energies, water management, biodiversity, dairy accompanying measures as crucial and new challenges for European agriculture.  Support for INNOVATION related to the priorities climate change, renewable energies, water management, biodiversity, may facilitate the strengthening of these priorities SSG WFD/CAP, March 2009

Heath Check: New elements related to water First pillar (Regulation 73/2009) Cross-compliance: Addition of water issue in Good Agricultural and Environmental Condition, with 2 compulsory standards: Buffer strips along water courses (no later than 2012) Compliance with authorisation procedures for irrigation (2010) Decoupling: Full decoupling for arable crops Modulation: Increased rate SSG WFD/CAP, March 2009

Additional funding through modulation (1/2) More funding will be available to the Member States via an increase in compulsory and the introduction of progressive modulation in order to address these challenges, beginning in 2009 (available in RD: from 2010). An overall increase of the basic rate of compulsory modulation by 5 percentage points will be implemented in four steps (+2,+1,+1,+1%) Progressive modulation: additional reduction of 4 percentage points for farms receiving more than 300,000 € of direct payments p.a. Thresholds (in €) 2009 2010 2011 2012 1 to 5 000 (Franchise) 0% 5 000 to 300 000 2% 3% 4% 5% Above 300 000 6% 7% 8% 9% SSG WFD/CAP, March 2009

Additional funding through modulation (2/2) What does this mean in terms of additional funding for RD? Increase in EAFRD funds EU is in total 3.241 billion for budget years 2010-2013. 2009: 479 million € 2010: 691 million € 2011: 912 million € 2012: 1159 million € SSG WFD/CAP, March 2009

Adressing the New Challenges Second pillar (Regulation 74/2009) As of 1 Jan. 2010 Member States shall provide support in their rural development programmes in accordance with their specific needs for types of operations referring to the new challenges. New Annex II : Indicative (!) and non-exhaustive list of types of operations and potential effects related to the New Challenges Examples of types of operations for each priority with reference to respective RD Article and associated potential effect SSG WFD/CAP, March 2009

Annex II: Types of operations and potential effects Priority: Climate change adaptation and mitigation Types of operations Articles and measures Potential effects Flood prevention and management measures (e.g. projects related to coastal and interior flood protection) Article 20: restoring agri-cultural production potential damaged by natural disaster and introducing appropriate prevention actions Reduction of the negative effects of extreme weather events related to climate change on agricultural production potential Priority: Water Management Types of operations Articles and measures Potential effects Water saving technologies (e.g. efficient irrigation systems) Water storage (including water overflow areas) Water saving production techniques (e.g. adapted cropping patterns) Article 26: modernisation of agricultural holdings Article 30: infrastructure Article 28: adding value Article 39: AEM Improvement of the capacity to use water more efficiently and to improve the capacity to store water SSG WFD/CAP, March 2009

Theme: Innovation (1/2) Innovation has been added as a „tool“ to facilitate achieving the objectives related to the New Challenges: It can in particular contribute to the development of new technologies, products and processes Types of operations related to innovation are set out in Annex II of Reg. 1698/2005 SSG WFD/CAP, March 2009

Theme: Innovation (2/2) Priority: Innovative approaches relevant to the priorities under Article 16a (1) (a), (b), (c) and (d) Innovative operations to enhance water management Article 29: cooperation for development of new products, processes and technologies Improvement of the capacity to use water more efficiently and to improve water quality SSG WFD/CAP, March 2009

Conclusions A number of reinforced and new measures favourable to water management: First pillar: cross-compliance, decoupling Second pillar: additional resources for „new“ challenges SSG WFD/CAP, March 2009