1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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 (Franchise) 0%
5 000 to 2% 3% 4% 5%
Above 6% 7% 8% 9%
SSG WFD/CAP, March 2009

8. 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 billion for budget years : million € 2010: million € 2011: million € 2012: million €
SSG WFD/CAP, March 2009

9. Adressing the New Challenges
Second pillar (Regulation 74/2009)
As of 1 Jan 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

10. 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

11. 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

12. 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

13. 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