Alternatives for land based payments in the EU Martin van Driel, European Commission Directorate General for Agriculture and Rural Development Unit for Enlargement Hvanneyri, 23-6-2011
Structure of the presentation
Introduction
Non land based payments in Pillar I agricultural markets and income
Non land based payments in Pillar II – rural development
Other non land based payments
Conclusion Directorate General for Agriculture and Rural Development
2
EU Agricultural budget 2011
Total budget:
Direct payments: € 40 billion Market management: € 3.5 billion Rural Development: €14.5 billion –
€ 58 billion
For RD: MS add approximately the same amount as co-financing
Directorate General for Agriculture and Rural Development
3
Division CAP expenditure between two pillars (in 2009)
Eerste pijler
Malta
Roemenië
Bulgarije
Letland
Estland
Slovenië
Slowakije
Litouwen
Polen
Tsjechië
Portugal
Oostenrijk
Hongarije
Cyprus
Finland
Luxemburg
Zweden
Ierland
Italië
Spanje
Duitsland
Griekenland
Frankrijk
België
Nederland
Denemarken
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Verenigd Koninkrijk
% van de totale uitgaven
Tweede pijler
Source: European Commission - DG Agriculture and Rural Development
Directorate General for Agriculture and Rural Development
4
Share of direct payments and total subsidies in agricultural factor income (2007-2009 average) 120% 110% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10%
Directorate General for Agriculture and Rural Development
EU-12
EU-15
EU-27
Sweden
Spain
Slovenia
Slovakia
Romania
Portugal
Poland
Netherlands
Malta
Lithuania
Latvia
Luxembourg
Total subsidies
United Kingdom
Direct payments
Italy
Ireland
Hungary
Greece
Germany
France
Finland
Estonia
Denmark
Czech Republic
Cyprus
Bulgaria
Belgium
Austria
0%
5
Non land based payments in Pillar I agricultural market support and direct payments
1 st Pillar: market and income support
Market support (Council Regulation 1234/2007) – –
Price support via public storage, private storage, production limitations, import tariffs, export refunds, producer organisations, wine envelope, disturbance clause, … Reference prices (≠ intervention price and ≠ guaranteed price!) reference price wheat other cereals rice beef/veal butter SMP pigmeat
– –
(euro/tonne) intervention period (months) quantitative limit (tonnes) 101,31 7 3.000.000 101,31 7 0 150,00 4 0 2224,00 12 unlimited 2463,90 6 30.000 1698,00 6 109.000 1509,39
Private storage: (mandatory) butter and (optional) white sugar, olive oil, beef pig meat, sheep meat Production limitations: milk, sugar, wine (until 2015), potato starch (until 2012) Directorate General for Agriculture and Rural Development
7
1 st Pillar: market and income support
Income support (Council Regulation 73/2009) – –
Ewe premium: 21 euro/animal Goat premium or sheep producing ewe: 16.8 euro/animal Supplementary premium 7 euro/animal –
90% of budget decoupled aid linked to eligible land With the exception of ewe and goat premiums and suckler cow premium.
in areas where this production constitutes a traditional activity or contributes significantly to the rural economy: to be determined by the MS.
Suckler cow premium: 200 euro/animal Supplementary premium of max 50 euro/animal –
Provided no discrimination between farmers in MS concerned. Directorate General for Agriculture and Rural Development
8
1 st Pillar: market and income support
Specific support (Article 68 of 73/2009): Use max 10% of national ceiling for decoupled payments to provide specific support: a. i. ii. iii. iv. v.
b. c. d. e.
Specific types of farming important for the environment Improving quality Improving marketing Animal welfare Agricultural activities with additional environmental benefits
To address disadvantages Protect against land abandoning Crop, animal and plant insurance Mutual funds for animal and plant diseases en environmental accidents
3.5% of that may be ‘coupled’ support –
Can be paid per head or other unit, including ha (land based) Directorate General for Agriculture and Rural Development
9
Non land based payments in Pillar II – rural development
Rural development policy 2007-2013 (€ 96.2 billion): Objectives and Priorities « LEADER Axis » local development / governance (Min. 5%) Axis 1: Improving the competitiveness of the agricultural and forestry sector
Axis 3:
Axis 2: Improving the environment and the country side
The quality of life in rural areas and diversification of the rural economy
€ 34.4 billion*
€ 43.7 billion
€ 18.1 billion
Min. 10%
Min. 25%
Min. 10%
* Figures in parantheses are indicative expenditures per axis 2007-13 as programmed by all 27 Member States including expenditures for technical assisstance and DP Romania and Bulgaria
AXIS 1: competitiveness (non land based)
Measures aimed at promoting knowledge and imporving human potential through – – – – –
Measures aimed at restructuring and developing physical potential and promoting innovation through – – – – –
Vocational training and information actions Setting up of young farmers Early retirement Use of advisory services Setting up of farm advisory services
Modernisation of agricultural holdings Improvement of the economic value of forests Adding value to agricultural and forestry products Cooperation for development of new products, processes and technologies Infrastructure related to the development and adaptation of agriculture and forestry
Measures aiming to improve the quality of agricultural products – – –
Meeting standards based on Community legislation Participation of farmers in food quality schemes Directorate General for Agriculture and Rural Development Information and promotion activities
12
AXIS 2: environment and the country side (non land based in bold)
Measures targeting the sustainable use of agriculture land – – – – –
Natural handicap payments in mountain areas and payments in other areas with handicaps (including areas above 62nd parallel) Natura 2000 payments and payments linked to water framework Directive Agri-environment payments: Local breed in danger of being lost to farming (max 200 euro/LU) Animal welfare payments (max 500 euro/LU) Non-productive investments
Measures targeting the sustainable use of forestry land – – –
First afforestation of agricultural land First establishments of agroforestry systems on agricultural land First afforestation of non-agricultural land •
– – – –
70% to 85% of establishment costs
Natura 2000 payments Forest environment payments Restoring forestry potential and introducing prevention actions Non- productive investments
Directorate General for Agriculture and Rural Development
13
Axis 3 quality of life and diversification (non land based)
Measures to diversify the rural economy – – –
Measures to improve the quality of life in rural areas – –
Basic services for the economy and rural population Conservation and upgrading of the rural heritage
Training, skills acquisition and animation – –
Diversification into non-agricultural activities Support for business creation and development Encouragement of tourism activities
Training and information Skills acquisition animation and implementation
Axis 4: –
LEADER: local action groups and area based local development strategies.
Directorate General for Agriculture and Rural Development
14
The three 2007-2013 RD thematic axes in the MS 100% 90% 80% 70% 60% 50% 40% 30% 20%
Axis 1: Competitiveness
Axis 2: Environment and land management
EU-12
EU-15
EU-27
United Kingdom
Sweden
Spain
Slovenia
Slovakia
Romania
Portugal
Poland
Netherlands
Malta
Luxembourg
Lithuania
Latvia
Italy
Ireland
Hungary
Greece
Germany
France
Finland
Estonia
Denmark
Czech Republic
Cyprus
Bulgaria
Austria
0%
Belgium
10%
Axis 3: Quality of life and diversification
Share of each axis of total EAFRD expenditure EU-27* Source: European Commission – DG AGRI
Axis 1: 35.8%
Axis 2: 45.4%
Axis 3: 18.8%
* Including funds allocated for Technical Aid and DP ROM
Directorate General for Agriculture and Rural Development
15
Other non land based payments
Nordic aid
National aid paid form national funds
Maximum aid allowed –
For Finland max amount: 358 Million euro
Maximum average aid allowed – – – – –
per LU (including pigs, poultry and horses Per animal (reindeer) Per m2 (greenhouses) Per kg (milk, wild berries) or Per ha
Maximum number of eligible production
Objective: to maintain agriculture in Nordic areas, not to increase production! Directorate General for Agriculture and Rural Development
17
Conclusion 
Within a common framework, the EU Common Agricultural Policy is flexible enough to accommodate specific circumstances in Member States.
Directorate General for Agriculture and Rural Development
18
The CAP in one click 
http://ec.europa.eu/agriculture/index_en.htm

http://ec.europa.eu/agriculture/capexplained/sustain/index_en.htm
Directorate General for Agriculture and Rural Development
19
Thank you for your attention
Directorate General for Agriculture and Rural Development
20