“The CAP towards 2020: meeting the food, natural resources and territorial challenges of the future”
Dušan Chrenek, Head of Unit for Enlargement Directorate General for Agriculture and Rural Development European Commission
Ⓒ Olof S.
Reykjavik, 22-6-2011
Structure of the presentation
1. 2. 3. 4. 5. 6. 7.
The CAP today Why do we need a reform? Future direct payment Future market support Future rural development Budget Next steps and concluding remarks
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1. The CAP today A substantially reformed policy… • Structured in two complementary pillars • Farm support mainly decoupled and subject to cross-compliance • Role of market intervention mechanisms significantly reduced to safety net level • Rural development policy strengthened with funds and new policy instruments
… better performing… • Surpluses belong to the past • Competitiveness improved • Improved transfer efficiency • More sustainable farming • Integrated approach for rural areas • Contribution to EU budget stability
… and resulting in a territorial and environmentally balanced EU agriculture
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2. Why do we need a reform? To respond to challenges ahead Economic challenges
Environmental challenges
Territorial challenges
• Food security
• GHG emissions
• Price variability
• Soil depletion
• Vitality of rural areas
• Economic crisis
• Water/air quality
• Diversity of EU agriculture
• Habitats and biodiversity
Equity and balance of support Contribution to Europe 2020 strategy
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2a. What are the objectives with the reform? Viable food production
Sustainable management of natural resources and climate action
Balanced territorial development
• To contribute to farm income and limit its variability
• To guarantee the provision of public goods
• To support rural vitality and employment
• To improve sector competitiveness and share in food chain value-added
• To foster green growth through innovation
• To promote diversification
• To compensate areas with natural constraints
• To pursue climate change mitigation and adaptation
• To allow social and structural diversity in rural areas
Common EU response needed
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2b. What policy instruments? Based on two pillar structure
• Direct payments and market measures • Rural development
Better targeted to objectives
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â’¸ Olof S.
Future Direct Payments
3. Direct payments
• Redistribution: between MS/ between farmers • Better targeting: away from historical basis • Redesign: • Greening of direct payments • Capping of payments • Small farmers support • Areas with specific natural constraints • Simplification: cross compliance
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â’¸ Olof S.
Future Market support
4. Market measures • Tools needed for the management of farmers’ income volatility • Risk management tools (EU level?) • Improved functioning of food chain contributing to market stability and distribution of value added across the chain • Market orientation • Avoid disturbing functioning of markets and market signals • Intervention measures needed in times of market crisis to ensure market stability in the most effective way • Streamline and simplification • Be consistent with income support instruments • Comply with WTO obligations
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â’¸ Olof S.
Future Rural development
5. Rural development in the context of the future EU agenda
EU 2020 priorities •
Create growth based on knowledge and innovation,
•
Inclusive growth
•
Green growth
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5. Rural development
• Improved coherence with other EU policies: • Setting of EU level targets (thematic or territorial) • Environment, climate change and innovation as guideline themes • Closer strategic coordination at EU level (EAFRD, EFF, ERDF, ESF) • More effective delivery mechanisms • number and scope of measures • e.g. rules for shared management including area-based development strategies • at the appropriate level: empower local actors • Address risk management • New distribution criteria
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Rural development – objectives post-2013 Preserve natural resources
Foster a competitive agricultural sector Improve resource efficiency:
•Adaptation to climate change and development of renewable energy
•Diversify the rural economy
•Reduce emissions •Carbon sinks •Renewable energy
• Sustainable land management to preserve ecosystems • High nature value farming
• Develop local infrastructure
• Natura 2000 and WFD • Forest systems management • Traditional landscapes
•Mobilize and connect local actors, including public-private partnerships
• Management of natural resources •Biodiversity, water, soil
•Modernisation/restructuring Means: Innovation, technology transfer and skills acquisition
Unlock local potential
Mitigate and adapt to climate change
•Focus on green technologies •Energy and water saving technologies •Emission reducing and waste management technologies for livestock •Technologies reducing use of fertilizer and pesticides
Develop rural areas
Means: Payment to land managers for public goods, training and advisory services
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Means: Social capital (cooperation, networking, place based strategies)
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â’¸ Olof S.
Budget
?
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7a. Next steps Inter-institutional debate on the Communication Preparation of Impact Assessment (IA) • In-depth Commission analysis of new policy settings, options and their economic, social and environmental impacts Preparation of Legal Proposals
Legal proposals will be presented in the second semester of 2011
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7b. Concluding remarks With reform, the CAP needs to: better respond to the new economic, environmental and territorial challenges be more sustainable, balanced, better targeted, simpler, effective and more accountable
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For further information •
The CAP after 2013 http://ec.europa.eu/agriculture/cap-post-2013/index_en.htm
•
The Communication on the future of the CAP http://ec.europa.eu/agriculture/cap-post-2013/communication/ index_en.htm
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Thank you for your attention.
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