European Parliament’s position on the CAP 2020 Communication Workshop on « Post 2013 CAP » Nicosia, 30 September 2011

EP position on the CAP Outline - Common Agricultural Policy (CAP) reform : a major priority for the EP Main elements of Dess report - objectives Direct payments and other support schemes Market instruments and risk management Rural development Other issues Next steps

CAP reform : a major priority EP strong supporter of a CAP 1st CAP reform under co-decision procedure Early preparations: –Lyon report 2010 –Dess report 2011 Big number of amendments but… … tradition to negotiate compromises = very broad majorities in Cttee & in plenary

Reform objectives Dess report = EP position on CAP 2020 broadly in line with COM communication … … but warnings: –need for adequate funding for the CAP –need for CAP simplification strong support on objectives of a greener, fairer and more efficient and effective CAP need for a reform in line with challenges

Need for adequate funding Strong & sustainable CAP needs adequate financial resources EU agricultural budget should be "maintained at least” at 2013 level concerns that Multi-annual Financing Framework (MFF) proposal might represent a cut in CAP funding Fair distribution of funds both among Member States & among farmers

Direct payments should be reserved only for 'active farmers'. should reward farmers for providing public goods: –environmental services, –employment, –landscape management, –rural economic vitality, etc.

Direct payments – greening component EP for an EU-wide incentivisation scheme draft EU list of measures applicable to all types of farming: –measures to limit or capture carbon emissions –support for low energy consumption and energy efficiency in farms –maintaining hedges and natural vegetation around fields to preserve biodiversity –permanent pastures –crop rotation, etc.

Direct payments – greening scheme should be 100% EU financed, should balance environmental and economic performance and be relevant from an agronomic point of view, should be built on existing payment structures and be simple to apply for farmers, costs and income foregone for farmers should be covered.

Direct payments – capping seen as an "attempt to address the issue of the CAP's legitimacy and public acceptance" "similar mechanisms" should be considered, ie. "degressivity" in light of farm size take employment & sustainable practices into account

Direct supports – small farmers simplified aid scheme with flexible and objective EU criteria up to MS to decide who should qualify – young farmers attractive measures to encourage the establishment of new entrants: –improved access to land, –grants and favourable loans (ie. for innovation and modernisation)

Market instruments pursue the trend towards greater market orientation review & enhance efficiency and flexibility of CAP market instruments Multi-tiered safety net with 2 levels: –1. for limited market disruptions: private storage and classical public intervention instruments –2. for serious crises: a market disruption instrument and an emergency clause (special budget line)

Risk management risk prevention measures accessible to all farmers national/private insurance schemes: common rules should be devised and their use promoted

Food chain share of farmers' revenues in the food chain decreased from +/-30% in 2000 to less than 25% measures needed to strengthen farmers’ bargaining power ie: –urgent initiatives to achieve greater transparency in food prices –action to address unfair commercial practices –help farmers run short production chains

Rural development multi-annual programming and contractual approach should be more outcome-oriented and flexible to accommodate national / regional specificities should contribute to attaining EU2020 objectives subtantial percentage of agricultural land covered by agri-environment schemes

Speculation on world markets global-level solutions to tackle speculation in agricultural commodities & extreme volatility maintaining stocks of vital commodities at international level, increasing storage capacities & developing market monitoring and surveillance instruments. worldwide notification and coordinated action system for agricultural stocks

Next steps 12 October: D. Cioloş to present Commission proposals in EP EP rapporteurs 7 November: meeting between EP AGRI Committee-Agriculture Council in the EP Cyprus presidency - 2 nd half of 2012 : might be decisive for progress of negotiations towards agreement

More information EP resolution of 23 June 2011 on the CAP towards 2020 (Dess report): getDoc.do?pubRef=-//EP//TEXT+TA+P7-TA DOC+XML+V0//EN&language=EN EP AGRI Committee website: committees/homeCom.do?body=AGRI

EP position on the CAP 2020 Thank you very much for your attention! EP Agriculture Committee Secretariat