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EU lawmakers back CAP budget status quo

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Published 26 May 2011, updated 30 May 2011

The European Parliament's agriculture committee said yesterday (25 May) that the EU agriculture budget needs to remain unchanged to enable farmers to meet the challenge of producing enough food while contributing to environmental protection.

Voting on a draft own-initiative report by German MEP Albert Dess (European People's Party), the committee said that the EU's farm budget should be kept at least at its current level when the policy is reformed from 2014, "in order to meet the challenges of food security, environmental protection and climate change".

The CAP budget is currently worth €55 billion a year and amounts to 40% of the bloc's total annual spending.

The report represents the lawmakers' first response to a European Commission paper on the Common Agricultural Policy (CAP) in 2020, published in November 2010.

The draft paper was adopted by 40 votes to one amid four abstentions, and will be discussed and voted upon in a Parliament plenary session next month.

With the resolution, lawmakers are seeking to influence upcoming legislation on reforming and modernising the EU farming sector, a process which runs alongside discussions on the EU's next long-term budget for the period 2014-20, on which the Commission is due to make its proposals next month.

EU countries including France, Poland and the Netherlands have also called for the CAP budget to be kept at its present level, while the UK and Sweden want to see significant cuts in farm spending.

Greening the CAP

The lawmakers backed an EU-wide "incentivisation" system, 100% financed by the EU, to support farmers who opt for sustainable production methods and sound management of resources such as water, soil and energy.

Direct payments to farmers should also be more directly linked to "greening measures" such low carbon emissions, capture of greenhouse gas emissions and low energy consumption, they said.

Fairer distribution

The committee further noted that CAP money should be distributed more fairly between member states and farmers. They demanded that in future "each EU country should receive a minimum percentage of EU average payments," with direct payments reserved for "active farmers", the definition of which is yet to be agreed upon.

The 'old' member states of the EU-15 currently receive more financial support per farmer than the newer member states, and some of the payments go to wealthy landowners who do not necessarily use their land for production.

MEPs also backed Commission proposals to introduce a ceiling on direct payments per farmer and suggested that the size, the employment record and the degree of environmental protection of each farm should be taken into account when deciding on payments.

Positions: 

German MEP Albert Dess (European People's Party), the European Parliament's rapporteur on CAP reform, said that "with an increasing world population and the challenges we are facing in order to protect our environment and climate, we need to continue with a competitive and sustainable EU agricultural policy in the future".

"The CAP must retain its capacity to supply the European population with high-quality and affordable food after 2013, as well as protect the environment. For that, our farmers need fair compensation," Dess said.

Agriculture committee chair Paolo De Castro MEP (Socialists & Democrats; Italy) described the vote as "the outcome of a lengthy work process that, as usual, involved all the political groups and has now set out the main principles to govern the new CAP," namely objective criteria for payments including employment, a new "green" element, more flexibility for member states and a dedicated budget line in the event of market crises.

MEP Luis Capoulas Santos (S&D; Portugal) said his group welcomed "the greening and new criteria for the attribution of direct aid, which enhance the role of farmers and legitimise the CAP to society".

French MEP Stéphane Le Foll (S&D) stressed that "farming is about far more than crops and livestock. We all benefit from its role in maintaining the environment and protecting animal welfare. It gives the EU safe supplies of food at reasonable prices and it creates jobs and growth".

"Paying farmers simply according to how much land they have cannot be justified because it is a system that does not ensure that EU subsidies go to real farmers and to those who really work towards the EU policy's goals. Other criteria need to be taken into account, including the environment and the number of jobs each farmer creates," Le Foll added.

British MEP George Lyon (Liberal Democrats) said that his ALDE group "will continue to argue that driving competiveness through innovation, further greening of the CAP, and fairer distribution through targeted payments will secure a sustainable future for European agriculture".

EU farmers' lobby Copa-Cogeca welcomed lawmakers' demands for continuation of a strong sustainable CAP, and the maintenance of its budget. Copa-Cogeca Secretary-General Pekka Pesonen also welcomed the committee's support for keeping two pillars of the CAP, "with food security remaining the main goal". 

Agriculture is well placed to make a major contribution to tackling climate change, while creating new jobs and supplying renewable energy "are realistic, though ambitious, objectives," Pesonen said.

He said it was crucial for the future CAP to provide a "stable framework for farmers through the maintenance of direct payments and measures which ensure well functioning markets and encouraging efficient viable farm businesses". 

"This is also why it is important to ensure that moves to further 'green' the CAP do not raise costs for farmers," Pesonen added.

The European Council of Young Farmers (CEJA) welcomed the Dess report's "greater focus on young farmers" to ensure generational renewal in EU agriculture.

CEJA welcomes measures such installation aid for young farmers under the second pillar and gearing national reserves more to young farmers, but "we maintain our call for measures in both Pillar I and Pillar II of the CAP to truly prioritise generational renewal," said CEJA President Joris Baecke.

Next steps: 
  • 23 June 2011: Parliament plenary vote on draft resolution.
  • June 2011: Commission to table proposals for EU's next long-term budget from 2014-20.
  • Autumn 2011: Commission to unveil draft legislative package on CAP post-2013.
  • 2012-13: Negotiations with European Parliament and Council.
  • 2013: Drafting of new CAP strategy and programmes.
  • 2014: Implementation of new CAP to begin.
Background: 

The European Commission unveiled its blueprint for reforming the EU's Common Agricultural Policy (CAP) in November 2010, proposing to increase subsidies to smaller East European farmers and to link direct payments to environmental and food security goals.

Totalling around €55 billion last year, farm subsidies consume more than 40% of the European Union's €130 billion annual spending.

Earlier in spring 2010, the Commission argued that the CAP should be reformed in a way that unlocks the potential of rural areas to contribute to the bloc's economic growth strategy for 2020.

The last round of CAP reform efforts was launched in 2003 and featured a 'decoupling' of agricultural production from subsidy payments in order to prevent over-production and waste.

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