A majority of MEPs backed the reform of the Common Agricultural Policy in a vote in Strasbourg yesterday (20 November) but a flurry of them criticised some of the finer points (see Positions).
The votes were on legislative changes to rules governing direct payments to farmers, rural development, the agricultural market, and financing, management and monitoring of the sector.
Portuguese MEP Luís Capoulas Santos, the Parliament’s lead negotiator on the CAP, said the reform was “greener and fairer” than the old policy.
“This reform will get value for public funds not only for farmers but for the whole of society,” he said.
The reform attempts to balance out the direct payments to different EU countries. Member states currently receiving less than 90% of the EU average will progressively get a larger share.
Roger Waite, spokesperson for Agriculture Commissioner Dacian Cioloş, said in an email that "the national envelopes which each member state gets is basically based on production volumes in the 2000-2002 period. This has led to large differences between member states – with average payments per hectare varying from 40% of the EU average to more than 250% of the EU average."
The reform will mean that every member state will receive at least 75% of the current EU average.
The agreement also changes the old payment system within countries, in which farms are funded based on the same system of historical references. Under the 2003 reform, most "old" member states, except Germany and the UK, allocate their direct payments based on production volumes from the 2000 to 2002 window.
"This means that two neigbouring farms may currently receive different amounts of support per hectare on the basis of how intensive their production was back in the reference period," said Waite, adding that "these changes and redistribution will be phased over the 2014-2020 period".
But member states can decide whether to use a national or regional average in deciding where to allocate payments.
Another aspect of the reform is to favour younger farmers and smaller farms, as opposed to a few large businesses.
Under the new rules, member states will be able to transfer money between the two “pillars” of the CAP, direct payments and rural development.
Payments will also be directed to organic farms and those using ‘greener’ agricultural practices. These include the maintenance of permanent grasslands, more land set-asides and crop-diversification.
Farmers will face fines for not carrying out the mandatory environmental measures, as well as losing their greening subsidies. The measures will be phased in during the first four years of the CAP.
"It is a matter of fairness to give farmers more time to familiarise themselves with the new rules,” said the European People’s Party’s Giovanni La Via, the Italian MEP in charge of the CAP’s financing, management and monitoring rules. “No penalties will be imposed in the first two years of the new CAP and only then will the share of so-called green payments withheld gradually rise to a maximum of 25%.”
The new CAP also reforms market measures, such as the old quota system. Quotas for milk expire in 2015, and sugar quotas in 2017.
After MEPs agreed to the reform, French farmers today (21 November) blocked roads into Paris to protest higher taxes and changes to European subsidies, Reuters reported. A fireman was killed in a traffic accident linked to the protest north of the capital.