1. A "greener" CAP an ever greater need for agri-environmental indicators Working Group "Agriculture and Environment" of the Standing Committee for Agricultural Statistics Luxembourg, February 2013
Gesa Wesseler
Team Leader, Rural Development Analyses
DG Agriculture and Rural Development
European Commission

2. Outline
The CAP reform in a nutshell – challenges, objectives and measures
What is "Greening"?
New framework for monitoring and evaluation
Proposed indicators – links with AEIs

3. Historical development of the CAP
Productivity
Competitiveness
Sustainability
The Early
Years
The Crisis
Years
The 1992
Reform
Agenda 2000
CAP reform 2003
CAP Health Check 2008
Food security
Improving productivity
Market-stabilisation
Product support
Over production
Exploding expenditure
International friction
Structural measures
Reduced surpluses
Environment
Income stabilisation
Budget stabilisation
Deepening the reform process
Competiti-veness
Rural development
Market orientation
Consumer concerns
Rural Development
Environment
Simplification
WTO compatibility
Reinforcing 2003 Reform
New challenges
Risk management

4. CAP reform 2013: What are the challenges for agriculture…
Economic challenges
Food security
Price variability
Economic crisis
Environmental challenges
GHG emissions
Soil depletion
Water/air quality
Territorial challenges
Vitality of rural areas
Diversity of EU agriculture
Economic
Environmental challenges
GHG emissions
Soil depletion
Water/air quality
Habitats and biodiversity
Environmental
Territorial

5. … and how will the CAP address them?
Commission Communication ‘The CAP towards 2020’
Legal proposals
Policy objectives
Challenges
Reform objectives
Europe 2020
Viable food production
Economic
Enhanced
competitiveness
Sustainable management of natural resources and climate action
Environmental
Improved
sustainability
Balanced territorial development
Territorial
Greater
effectiveness
Simplification

6. What CAP instruments to meet the reform objectives?
Enhanced
competitiveness
Improved
sustainability
Greater
effectiveness
Improved economic tools to address market developments
Crises reserve / Risk management toolkit
Improved position of farmers in the food supply chain
Research, innovation and knowledge transfer and an improved Farm Advisory System
New ‘green’ payment in Pillar I
Enhanced cross compliance for climate change
Two environmental priorities for rural development
Research, innovation and knowledge transfer and an improved Farm Advisory System
Redesign of direct payments
Common strategic framework for EU funds
Redistribution of direct payments across and within Member States
Allocation of rural development envelopes
Simplification of the policy
Pillar I
Pillar II
Flexibility

7. The new greening architecture of the CAP
Agricultural Research
Implementation mechanism
European Innovation Partnership
Farm Advisory System
Voluntary
with compensation
for cost incurred
and income forgone
Rural
development
Mandatory
with financial
support
(decoupled “green”
payment per hectare)
Cumulative environmental benefits
Green direct payments
Cross compliance
Regulatory
(Statutory
Management
Requirements and
Good Agricultural
Environmental
Conditions)
Agricultural area
(eligible for direct payments)

8. The proposed green direct payment
Crop diversification on arable land:
Avoid big intensive monocultures often detrimental to the environment
At least 3 crops (min 5% and max 70% of the arable land)
Annual obligation (not pluriannual crop rotation)
Preservation of permanent grassland:
Permanent grasslands are among the main carbon sinks
At farm level (5 % flexibility)
Ecological Focus Areas (on arable land and permanent crops):
Restoring biodiversity and landscapes
At least 7 % of the relevant eligible hectares should be EFAs
Landscape features, buffer strips, terraces, fallow land, certain afforested land, etc.

9. Environmental benefits of the green payment
Measures
Permanent grassland
Ecological focus area
Crop diversification
Soil
Water
Biodiversity habitats
Landscape
Climate change
mitigation
Environmental
benefits
Strong impact
Medium impact
Medium to strong impact
Low impact

10. Breaking news: Greening in the Council conclusions on the next MFF (7
Breaking news: Greening in the Council conclusions on the next MFF (7./8. Feb 2013)
Financed by 30% of annual national ceilings
Clearly defined flexibility for Member States relating to the choice of equivalent greening measures
Implementation of ecological focus area should not require the land in question to be taken out of production
Next:
MFF discussions in the European Parliament
Discussions and votes on the CAP reform proposals in the Council and European Parliament
Detailed provisions in implementing acts
Full implementation: 2015?

11. New framework for monitoring and evaluation of the CAP
Monitoring and evaluation of common agricultural policy: "A common monitoring and evaluation framework shall be established with a view to measuring the performance of the common agricultural policy" (Article 110 of the "horizontal" Regulation on the financing, management and monitoring of the common agricultural policy)

12. Intervention logic for the CAP
CAP general objectives
Viable food production
Sustainable management of natural resources and climate action
Balanced territorial development
CAP specific objectives
CSF*
thematic
objectives
Enhance farm income
Improve agricultural competitiveness
Maintain market stability
Foster innovation
Promote socioeconomic development of rural areas
Meet consumer expectations
Provide environmental public goods
Pursue climate change mitigation and adaptation
Maintain agricultural diversity across the EU
Pillar I specific objectives
Pillar II specific objectives 12
*CSF: Common Strategic Framework including the EFRD, ESF, CF, EAFRD and EMFF

13. Types of indicators Context indicators CAP general objectives
Impact indicators
CAP specific objectives
Result indicators
Situation & trends
Pillar I instruments & Pillar II measures
Output indicators 13

14. Timing, reporting and geographical level
New CAP implementation now likely by 2015 => need to have baseline data before then! Impact indicators for Pillar 1 will be measured at national level. Reporting will be done by the Commission (for the whole CAP). For Pillar 2, the relevant geographical level will depend on the type of programme (national / regional). Reporting at programme level will be done by the Member States.

15. Proposed impact indicators
General objective: Viable food production
Agricultural entrepreneurial income
Agricultural factor income
Agricultural productivity
EU commodity price variability
Consumer price evolution of food products
Agricultural trade balance
General objective :Sustainable management of natural resources & climate action
General objective : Balanced territorial development
Rural employment rate
Degree of rural poverty
Rural GDP per capita
GHG emissions from agriculture
Farmland birds index
HNV Farming
Water abstraction in agriculture
Water quality
Soil quality: Soil organic matter
Soil erosion
~ AEI 19
~ AEI 25
~ AEI 23
~ AEI 20
~ AEI 27
~ AEI 26
~ AEI 21

16. Impact indicators vs. AEIs
7. GHG emissions from agriculture: net GHG emissions from agriculture including agricultural soils (cropland and grasslands);
8. Farmland birds index: no differences in the definitions but some improvements needed
9. HNV Farming: methodologies and data sources may differ among MSs.
10. Water abstraction in agriculture: FSS data on the "volume of water used for irrigation" are proposed as potential/preferred data source.

17. Impact indicators vs. AEIs
11. Water quality: different alternative AEI indicators are proposed and under discussion with MSs (1. GNB or 2. Nitrates in freshwater)
12. Soil quality: the "Soil organic matter" is proposed as indicator.
13. Soil erosion: same definitions, need for data.
For all indicators: Need for improvement of their geographical level and aggregation.

18. Thank you!