IIEA Conference, Dublin, 5 July 2011

Transcription

1 Olof S.

2 Olof S.

3 IIEA Conference, EU Plans for Agriculture in the period to 2020 Lars Hoelgaard, Special Adviser Olof S. DG for Agriculture and Rural Development European Commission

4 Importance of agriculture in the EU territory 13.7 million farms (70% with less than 5 ha) The agrifood sector has 17.5 million employees (7.7% of total employment) 4

5 Income safety net Income Adjusted SPS Markets Direct payments Price support/ Quotas reform GAEC Competitiveness & innovation Environment and land management Rural development Quality of life, diversification 5 5

6 CAP budget cost trend from Amber to Green EU-12 EU-15 EU-27 6

7 While farm incomes remain significantly below the average of the economy Average income Farm income remain below average Source: European Commission - DG Agriculture and Rural Development, based on Eurostat data on national and agricultural accounts. *EU-15 average calculated with: EL, ES, FR, IT, NL, AT, PT; EU-10 average calculated with: CZ, EE, HU, PL, SK; EU-25 average = EU-15 + EU-10 countries. 7

8 Recent evolution of agricultural input and output prices Source: Eurostat 8

9 Average direct payments per potentially eligible area and beneficiary Direct payments net ceilings fully phased-in (in 2016) Source: European Commission - DG Agriculture and Rural Development 9

10 CAP expenditure between pillars (in 2009) Source: European Commission - DG Agriculture and Rural Development 10

11 GREENING Aim: greening of DPs by means of a set of simple environmental actions across the EU territory on the basis of uniform definitions and payment levels Measures Crop rotation: minimum of [3] crops covering with no crop exceeding [? %] of farm area (crop diversification) Permanent grassland: grassland premium [with minimum maintenance requirements] Ecological set aside: [? %] of land not in use at farm level Natura 2000: separate payment Other? Coherence with cross compliance and rural development Administration and controls WTO classification as decoupled payments (green box) 11

12 Targeting of support to active farmers Possible criteria, e.g. Composition of income Proportion of capital invested Professional qualifications / practical experience Residence on or close to the farm Presence of animals or farm machinery or relevant activities Synergy with rural development 12

13 Targeting of support to active farmers Challenges WTO green box compliance (no link to current use of production factors) Equal treatment of farmers in different situations Data availability and controllability issues 13

14 CAP reform Consolidate market orientation for Improved Competitiveness Budgetary reasons World Trade Organisation (WTO) 14

15 CAP reform Market orientation (streamline and simplify safety nets) Direct payments imbalance between MS budget post 2013? Income supports versus public goods 15

16 Commission proposal 29 June 2011 Commission proposal on Financial Framework (in million at 2011 constant prices) Smart & inclusive growth Cohesion policy Sustainable Growth: Natural resources Agri Markets & direct payments Rural Development Env. & climate action (LIFE+) Security & Citizenship inc. food safety Global Europe , Administration Total Commitments As % of GNI 1,12% 1,08% 1,07% 1,06% 1,06% 1,05% 1,04% 1,03% 1,05% OUTSIDE THE MFF (inc. European Globalisation Fund) Reserve for crises in agricultural sector TOTAL MFF + OUTSIDE MFF As % of GNI 1,13% 1,13% 1,12% 1,12% 1,11% 1,10% 1,09% 1,11% Source: COM(2011)

17 Evolution of CAP share in EU budget >50% 17

18 Alternative views on the cost of the CAP CAP cost in 2009 (in absolute terms) CAP cost in 2009 (in relative terms) 41% of EU budget 0.5% of EU GDP Source: European Commission - DG Agriculture and Rural Development 18

19 Financial perspectives June 2011 proposal TOTAL CAP budget Pillar 1 Pillar 2 Food safety Most deprived persons Reserve for crisis Globalisation Fund Research & Innovation 369 billions 281,8 billions 89,9 billions 2,2 billions 2,5 billions 3,5 billions 2,5 billions 4,5 billions 19

20 Financial perspectives June 2011 proposal (76%) (24%) 20

21 Time table CAP reform and EU budget Proposals autumn 2011 Budget Financial Perspective Poland 2/2011 Denmark 1/2012 Cyprus 2/2012 Ireland 1/2013 Lithuania 2/2013 Co-decision EP 21

22 Timetable EU budget New Financial framework 2020 Proposals 29 June 2011 EP - role UK budget rebate F CAP - protect NL + S DE reduced participation Decision? 22

23 Olof S.

24 Olof S.