1 Implementing the Common Agricultural Policy in the New Member States and Candidate Countries Tomas Ratinger Institute for Prospective Technological Studies, Seville Presentation for the Workshop on Inventories and Projections GHG and NH 3 emissions in CEE Ispra, June, 2005

2Outline Introduction Introduction Adoption of CAP (Full Scheme, SAPS) Adoption of CAP (Full Scheme, SAPS) Implementation (2004) Implementation (2004) CAP Reforms in New Member States CAP Reforms in New Member States Rural Development Plans and the other Measures Rural Development Plans and the other Measures Conclusions Conclusions Introduction CAP Adoption Implementation Policy Reform RDPConclusion

3Introduction Directly addressing the issue Directly addressing the issue –Regulations - taxes –Payments for changing practices –Support to innovation Or indirectly Or indirectly –Affecting extent and intensity of production Number of animals, crop intensity, etc.Number of animals, crop intensity, etc. –Changing practices (when aimed at other issues) Introduction CAP Adoption Implementation Policy Reform RDPConclusion

4Introduction Directly addressing the issue Directly addressing the issue –Regulations - taxes –Payments for changing practices –Support to innovation Or indirectly Or indirectly –Affecting extent and intensity of production Number of animals, crop intensity, etc.Number of animals, crop intensity, etc. –Changing practices (when aimed at other issues) Introduction CAP Adoption Implementation Policy Reform RDPConclusion

5 Adoption of CAP in NMS In the framework of Agenda 2000 In the framework of Agenda 2000 –Council decission (EC) No 281/2004 Not full payments, but Not full payments, but –gradually increasing from 25% in 2004 to 100% in 2013 –the possibility to grant additional support: Complementary National Direct Payment (CNDP, called top-ups) Schemes Schemes –Full Agenda 2000 (grand cultures, headage premiums, set-aside) –Simplified: Single Area Payment Scheme a flat rate calculated from the national envelope per hectare of UAAa flat rate calculated from the national envelope per hectare of UAA in good agricultural conditions i.e. Good Agricultural Practices have to be defined. in good agricultural conditions i.e. Good Agricultural Practices have to be defined. –No hybrids Introduction CAP Adoption Implementation Policy Reform RDPConclusion

6 Adoption of CAP Top-ups (CNDP) Top-ups (CNDP) –To meet specific needs of NMS –Up to 30% of the EU 15 level –Independently if SAPS or not –Financed from the national budget or transfers from RD funds possible (20, 20, 20) or (25, 20, 15) percent transfer schemes from the RD funds for 2004, 2005, 2006 respectively(20, 20, 20) or (25, 20, 15) percent transfer schemes from the RD funds for 2004, 2005, 2006 respectively –Commission (will) authorises them each year Introduction CAP Adoption Implementation Policy Reform RDPConclusion

7 Implementation of CAP in NMS (2004) EST SAPS, CNDP (4) LV SAPS, CNDP (8) LT SAPS, CNDP (6) PL SAPS, CNDP (4) CZ SAPS, CNDP (5)* SK SAPS, CNDP (1) HU SAPS, CNDP (10) CY SAPS, CNDP BG, RO: SAPS and CNDP? – or directly SPS SI, MA: full scheme Introduction CAP Adoption Implementation Policy Reform RDPConclusion

8 Specific support to livestock in CNDP EST Suckl. Cows, Bulls LV Suckl. Cows, Slaug.P., Milk LT Suckl. Cows, Bulls, Slaug.P PL CZ LU of bovine, Suckl. Cows SK HU Suckl. Cows, Beef, Milk, Ewe CY? BG, RO:? SI, MA: part of the full scheme Introduction CAP Adoption Implementation Policy Reform RDPConclusion

9 Transfers from RD funds to CNDP ESTMaximumLV Less than maximum LTMaximum PLMaximum CZ SKMaximum HU CY? BG, RO: ? SI Almost maximum Introduction CAP Adoption Implementation Policy Reform RDPConclusion

10 Implementation of SAPS in 2004 Introduction CAP Adoption Implementation Policy Reform RDPConclusion Differences due to: Differences due to: The share of supported production The share of supported production –Grand cultures x other crops and grasslands –Intensity of livestock (on grasslands) The share of abandoned land The share of abandoned land –in the reference period –and the number (and area) of farmers applying

11 CAP Reforms and NMS Introduction of SPS (Single Payment Scheme, EC 1782/2003): Introduction of SPS (Single Payment Scheme, EC 1782/2003): Slovenia and Malta (Full scheme) Slovenia and Malta (Full scheme) –may delay the introduction of the SPS in 2006 or 2007 (Slovenia 2007) The other 8 countries The other 8 countries –may continue SAPS until 2008 –CZ, SK, LT, PL have indicated to keep SAPS until 2008 Expected implication of the adoption of reforms in NMS Expected implication of the adoption of reforms in NMS –Further decoupling – eliminating direct incentive to raise livestock unless livestock remains partially coupled (LT) –Cross compliance –indirect effect (direct only if some MS include) Small farmers might find difficult to invest and will have to quitSmall farmers might find difficult to invest and will have to quit Introduction CAP Adoption Implementation Policy Reform RDPConclusion

12 RD and the other measures in NMS SAPARD, OP and RD Plans for SAPARD, OP and RD Plans for Relevant measure Relevant measure –Investment in Operation Programmes –Extensive livestock, certain practices in Agri-environmental schemes State aid State aid –Specific support to address animal waste management (e.g. LT) Adoption of the Nitrate Directive Adoption of the Nitrate Directive Introduction CAP Adoption Implementation Policy Reform RDPConclusion

13 RD measures in NMS Modernisation Modernisation –New investment should be more environmentally friendly in general –But may lead to more livestock –Specifically targeted investment support - ?uptake? Organic farming Organic farming Introduction CAP Adoption Implementation Policy Reform RDPConclusion EST Investment in improving manure storage, livestock housing, OF CZ Investment in improving manure storage and management, OF HU Investment in Agriculture (aimed at livestock), IF, OF LT Animal breeding, Improving waste management (investment), OF LV Investment in FH (aimed at Livestock), OF PL Investment in FH (aimed at livestock), IF and OF SIOF SK Modernisation of manure storages, improved manure management, OF FH farm holdings, OF organic farming, IF Integrated farming

14Conclusions Although emissions of GHG and NH 3 are not among the main objectives of agricultural policies in NMS they are addressed indirectly (joint effect of the other measures) Although emissions of GHG and NH 3 are not among the main objectives of agricultural policies in NMS they are addressed indirectly (joint effect of the other measures) In the most cases, GHG emissions are mentioned in programming documents/ countries are aware. In the most cases, GHG emissions are mentioned in programming documents/ countries are aware. While related (direct and indirect) measures (e.g. investment) exist – we do not know the uptake. While related (direct and indirect) measures (e.g. investment) exist – we do not know the uptake. Introduction CAP Adoption Implementation Policy Reform RDPConclusion