Decoupling and Cross- Compliance as Concepts and Instruments in Agricultural Multifunctionality Kenneth J. Thomson University of Aberdeen

“Agricultural Multifunctionality” The resources of farm businesses and/or households (“farms”) used to produce at least one “commodity” (e.g. wheat, B&B) and one (non-traded) “non-commodity” (e.g. landscape, pollution) a political football, used to justify protectionism a policy objective, or a “fact of life”?

Functions and Policy Functions are the production of commodities and non-commodities Farms produce via their “activities”, e.g. grazing, off-farm work Policies affect (encourage, discourage, alter) many of these activities, directly and indirectly, and thus affect functions

A Policy-Function Matrix for Multifunctionality Columns = Policy Areas (or “Policies”), e.g. market support, agri-environmental measures, energy policy Rows = Functions, e.g. food production, landscape provision, social cohesion Cell entries = how farm Activities are affected by Policies in terms of the Function(s) they provide

Market Support Agric. Devt. support LEADERMore … Food Products ++? Biodiversity --? Entre- partnership -++ More …

Matrix Completions (see hand-out) Expert entries for 11 Case Study Areas (mostly NUTS3) in TOP-MARD Partner Countries Most entries for CAP-type measures (market support, direct income aids, agric. devt. support), agri-environmental measures, and LEADER-type projects

Main Policy (column) Entries All “agricultural” policies affect almost all “functions“; but sometimes negative or ambiguous Biodiversity and other environmental policies positive for water, wildlife, etc. Regional Fund and (especially) LEADER generally positive for several agric. functions Energy policy positive for farm production (unprocessed and processed) Forestry policy affects farm production also landscape and wildlife (negatively?)

Main Function (row) Entries Farm product supply affected (positively) by several policies, not all “ agricultural”. Food security, food quality (actual or perceived) and animal welfare generally improved by several policies Tourist facilities promoted by both agricultural development policies and LEADER-type schemes. Landscape and natural resources affected, both positively and negatively, by most policies “Soft” functions promoted by several policies, but other policies have uncertain or negative effects.

Policy Scenarios Time horizon? – 2013, but simulate to 2030? Policies only, or market/other developments? – mostly policy only One-by-one, or joint? – joint “Plausible” or “extreme”? - “plausible” Number of scenarios? – less than 10?

Decoupling and Cross- Compliance Decoupling a “hot” modelling topic –theory (SFP/SAPS as lump sum or coupled) –country-to-country variation (and change) Cross-compliance less analysed? In UK: –Statutory Management Requirements (SMRs) from 18 EU Directives/Regs.Statutory Management Requirements –Good agricultural and environmental condition (GAEC) standards, e.g. land management, other (UK) legal reqts.Good agricultural and environmental condition

More on Cross-Compliance So far, fairly limited; “easy” standards, uncertain policing and penalties In the 10 SAPS NMSs: –limited to permanent pasture –(even) more “agricultural” than in EU-15 –difficult to deal with land abandonment An “excuse” for SFPs/SAPSs? But …

Future of Cross-Compliance? Depends on pace of decoupling Strengthen into a full-scale agri- environmental measure?

A New Scheme in Scotland Tiers 0 (basic), 1 (SFP), 2 (AE), 3 (special) Tier 1: 18 GAEC standards (94pp guide!); Tier 2 Land Management Contracts (LMCs) to comprise most pre-existing schemes via: –20-item menu of options –Individual contracts, mostly five-year –Fixed payment rates, e.g. ~€ /yr for AHW, €1.50/ha moor, €150/visit, €4/m path –Overall max.: e.g. €4500/100ha or €450(+)/ha

Conclusions Multifunctionality: what mix of “functions”? What kinds of farm (household) activities? TOP-MARD policy-function matrix a useful tool? – but need to refine in use Decoupling (SFP/SAPS) creates need for cross-compliance, but: –future strengthening (rules and/or control)? –develop into full-scale AE and other schemes?

Thank you !

Contents Introduction Agricultural Multifunctionality Functions and Policy Policy Matrix Main Functions of Agriculture across Europe Policy Scenarios Decoupling and Cross Compliance Conclusions