Olof S.
Olof S.
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
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
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
CAP budget cost trend from Amber to Green EU-12 EU-15 EU-27 6
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
Recent evolution of agricultural input and output prices Source: Eurostat 8
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
CAP expenditure between pillars (in 2009) Source: European Commission - DG Agriculture and Rural Development 10
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
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
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
CAP reform Consolidate market orientation for Improved Competitiveness Budgetary reasons World Trade Organisation (WTO) 14
CAP reform Market orientation (streamline and simplify safety nets) Direct payments imbalance between MS budget post 2013? Income supports versus public goods 15
Commission proposal 29 June 2011 Commission proposal on Financial Framework 2014-2020 (in million at 2011 constant prices) 2013 2014 2015 2016 2017 2018 2019 2020 2014-2020 1.Smart & inclusive growth 66.354 64.696 66.580 68.133 69.956 71.596 73.768 76.179 490.908 - Cohesion policy 52.406 46.554 47.029 47.428 47.895 48.484 49.041 49.589 336.020 2. Sustainable Growth: Natural resources 59.031 57.386 56.527 55.702 54.861 53.837 52.829 51.784 382.927 - Agri Markets & direct payments 43.515 42.244 41.623 41.029 40.420 39.618 38.831 38.060 281.825 - Rural Development 13.890 13.618 13.351 13.089 12.832 12.581 12.334 12.092 89.895 - Env. & climate action (LIFE+) 362 390 415 440 465 490 515 485 3.200 3. Security & Citizenship inc. food safety 2.209 2.532 2.571 2.609 2.648 2.687 2.726 2.763 18.535 4. Global Europe 9.222 9.400 9.645 9.845 9.960 10.150 10.380 10.620 70.000 5, Administration 8.833 8.542 8.679 8.796 8.943 9.073 9.225 9.371 62.629 Total Commitments 145.650 142.556 144.002 145.085 146.368 147.344 148.928 150.718 1.025.000 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) 429 429 429 429 429 429 429 3.000 Reserve for crises in agricultural sector 500 500 500 500 500 500 500 3.500 TOTAL MFF + OUTSIDE MFF 150.371 152.585 153.391 154.725 155.739 157.372 159.134 1.083.316 As % of GNI 1,13% 1,13% 1,12% 1,12% 1,11% 1,10% 1,09% 1,11% Source: COM(2011) 500 16
Evolution of CAP share in EU budget >50% 17
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
Financial perspectives 2020 29 June 2011 proposal TOTAL CAP budget 2014-20 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
Financial perspectives 2020 29 June 2011 proposal (76%) (24%) 20
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
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
Olof S.
Olof S.