Mariann Fischer Boel (the EU agriculture commissioner) presented a reform package on the 20th of May, in a bid to not only reform the Common Agricultural Policy (CAP) but also to slow down the soaring food prices.
The ’Health Check’ is aimed at modernising the CAP in response to increasing food and feed prices. It is aimed at cutting out of date subsidies that make no sense in today’s world, suffering from a global food crisis. Under the current CAP system, farmers are encouraged to keep land fallow in exchange for subsidies. Whereas under the proposed CAP reforms these subsidies will be cut and farmers will, according to Mrs Boel, be free to "meet growing demand and respond quickly to what the market is telling them". Mrs Boel went on to say that the changes will "simplify, streamline and modernise" giving farmers, "the tools to handle the challenges they face, such as climate change."
Under the new reforms CAP payments will instead of being direct payments made on a basis of yield or hectares but will go, more and more, in the direction of the Rural Development Fund.
The abolition of set aside is a response to the growth in the demand for food and the set aside scheme, introduced as a result of too much supply, is now to be abolished. Milk quotas are to be abolished by 2015 but in the meantime the commission proposes an increase in milk quotas over the next five years to ensure a cushioned transition. Coupled payments are to be removed [1], with the exception of payments for suckler cow, goat and sheep premia.
Other reforms include the movement away from historical payments [2] and on to a flatter rate style of payment.
The SAPS (Single Area Payment Scheme) will be extended to 2013. The commission hopes to offset the the environmental effect of the abolition of set aside by increasing and simplifying cross compliance aid [3].
Several other reforms are to be implemented :
Assistance to sectors with special problems : an increase in flexibility
Shifting money from direct aid to rural development : simplification, less specific
Intervention Mechanisms : intervention abolished on feed grains durum wheat, rice and pig meat, and tendering will be introduced in other areas
Payment Limitations : member states apply minimum payments for small farms
Other measures have been suggested such as abolishing the Energy Crop Premium and further decoupling and removal of support schemes. These CAP reform measures appear to be moving in the direction of increasinglysimplified and standardised payments as well as freeing up farmers to respond to market signals.
EPHA will continue to work with members to ensure that CAP continues to reform consistently with health concerns.
For Further Information
DG Agriculture and Rural Development Website
EPHA related articles
Ahead of the 2008 reform of the CAP : How healthy is the current CAP ?
