The CAP towards PDF Free Download

The CAP towards 2020 Legal proposals on the scmo DG Agriculture and Rural Development European Commission C Olof S.

Outline 1. The CAP reform process 2. The main policy challenges, objectives and instruments 3. MFF proposals on support for European agriculture 4. Challenges and objectives specific to markets and the scmo 5. Overview of scmo proposals 2

The CAP reform process 12 April 11 June 2010 19-20 July 2010 18 November 2010 23 November 2010 25 January 2011 29 June 2011 12 October 2011 Public debate (EU citizens and organisations) Public conference Commission Communication The CAP towards 2020 Consultation on Impact assessment (stakeholders) Commission proposals on the EU budget 2014-2020 Commission legal proposals on the CAP The legal proposals are accompanied by an impact assessment that evaluates alternative scenarios for the evolution of the policy on the basis of extensive quantitative and qualitative analysis 2011-2013 Debate in the European Parliament and the Council Approval of Regulations and implementation 3

Challenges and how the CAP will address them Commission Communication The CAP towards 2020 Legal proposals Challenges Policy objectives Reform objectives Europe 2020 Economic Environmental Viable food production Sustainable management of natural resources and climate action Enhanced competitiveness Improved sustainability Territorial Balanced territorial development Greater effectiveness Simplification 5

The future CAP at a glance Enhanced competitiveness Innovation, knowledge transfer, risk management, cooperation in the food supply chain, market orientation Improved sustainability Green payment, enhanced cross compliance, resource efficiency, research and innovation Greater effectiveness Improved targeting, redistribution, Common Strategic Framework, simplification 6

MFF proposals on support for European agriculture in billion EUR Real 2011 (2011) prices Current Nominal prices prices (2013) prices «Nominal freeze» of CAP amounts at 2013 level Heading 2 of MFF - Pillar I - Direct payments and market-related expenditure 281.8 317.2 - Pillar II - Rural development 89.9 101.2 Total CAP 371.7 418.4 Additional amounts available for agriculture - in other Headings of MFF, and - outside MFF Other Headings of MFF - Heading 1: Most deprived persons 2.5 2.8 - Heading 1: Research and innovation on food security, bioeconomy and sustainable agriculture 4.5 5.1 - Heading 3: Food safety 2.2 2.5 Outside MFF - Reserve for crises in the agricultural sector 3.5 3.9 - European Globalisation Fund Up to 2.5 Up to 2.8 Total additional amounts Up to 15.2 Up to 17.1 Total amounts for 2014-2020 Up to 386.9 Up to 435.5 8

Challenges specific to markets and the scmo Increased exposure to external factors Increased price volatility (income and consumer effect) Climate change (increased risk of plant diseases, drought, etc. variable production) Increasing production costs Food supply chain issues Slow and asymmetric transmission of price changes, lack of price transparency (negative impact on production decisions) Uneven distribution of value added Uncertainties surrounding market prospects Macroeconomic (credit, exchange rates, inflation, crude oil price, etc.) Policy (trade negotiations, trade limitations, etc.) Market (supply shocks, demand shifts implications on trade, stocks, etc.) Articulated and complex system of market instruments 10

Continued market orientation Objectives to improve competitiveness and benefit from a continuous growth in (global) food demand by dismantling limitations on sugar production, Abolishing / adjusting aid schemes that affect production decisions and increased financing for research and innovation while providing an effective safety net for farmers in the context of external uncertainties for a broader set of sectors with the possibility to act quickly while providing a minimum income for farmers (direct payments) and including a set of options for risk management (rural development) 11

Improving producer cooperation Objectives (continued) for a more effective positioning in the food supply chain, achieve greater price transparency and improved price transmission, and fair distribution of value added along the food supply chain for all sectors with clearly defined objectives and co-financing for the setting up of producer groups for all sectors in all Member States (through Pillar II) Simplification and streamlining of the scmo to achieve greater clarity regarding the available measures and their efficient and effective implementation 12

Market orientation Abolition of sugar quotas as envisaged in existing scmo Quotas end in 2015 Abolition of the minimum sugar beet price, production charge and withdrawal Compulsory contracts maintained Sugar eligible for optional private storage aid Removal / adjustment of certain aid schemes Silkworm aid funding transferred to SPS envelopes Abolition of hops PO aid Reduction of maximum co-funding for olive oil PO/IBO aid (to 75% and 50%) and removal of support for market follow up and dissemination of information Abolition of aid for skimmed milk/smp as feedingstuff and SMP processed into casein and caseinates Maintaining earlier decisions on production limitations and excluding relevant provisions from scmo Milk quota Production limitations in the wine sector 14

Safety net Public intervention has been streamlined sorghum and durum wheat removed as eligible products automatic opening of tendering (above fixed quantities) for butter and SMP optional opening for beef and veal Aid for private storage streamlined and expanded optional for all products (incl. butter) SMP and flax for fibre become eligible More responsive to market developments Exceptional measures updated and modernised a single animal disease provision for all animal products loss of consumer confidence provision expanded to all sectors in the existing scmo a general market disturbance provision for all sectors in the existing scmo Possibility to act under urgency procedures 15

Crises reserve Safety net to provide additional support in case it cannot be financed within limits of EAGF sub-ceiling in circumstances going beyond normal market developments in particular, exceptional measures, public intervention, private storage and export refunds with a maximum annual amount of 500 million euros in real (2011) prices 16

Producer cooperation Facilitating the setting up of Producer Organisations (POs) and their Associations (APOs), as well as Interbranch Organisations (IBOs) Setting up aid for producer groups expanded to all Member States and sectors in second pillar Mandatory recognition Streamlining and simplification of available provisions Extension of rules extended to all sectors and harmonised across PO/APO/IBO Anti-trust exemptions harmonised across all sectors and PO/APO/IBO 17

Other School milk and school fruit schemes Raising the funding for school fruit schemes to 150 million euros Extending the measures eligible for EU co-funding Most deprived scheme removed from scmo Promotion separate initiative 18

For further information The CAP after 2013 http://ec.europa.eu/agriculture/cap-post-2013/index_en.htm Commission Communication The CAP towards 2020 http://ec.europa.eu/agriculture/cap-post-2013/communication/ index_en.htm Impact assessment on market measures (Annex 5) Legal proposal on the scmo http://ec.europa.eu/agriculture/analysis/perspec/cap-2020/impactassessment/annex5_en.pdf http://ec.europa.eu/agriculture/cap-post-2013/legalproposals/com626/626_en.pdf 19

Thank you 20