copa viitorul pac-28.10.2011

7/30/2019 Copa Viitorul PAC-28.10.2011

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The Future CAP after 2013

Copa-Cogeca proposalsfor green growth


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SUMMARY

In its communication of November 2010, the Commission put forward the idea of

introducing a greening component of direct payments under the 1st pillar.

Greening is nothing new to the CAP. Since the beginning of the 90s farmers have

faced the introduction of a whole range of new regulations and measures to ensure

environmental protection and in 2005 cross compliance was introduced.

As a result, the EU has the highest standards of environmental sustainability and

animal welfare in the world but it has come at a price. Meeting these standards

has led to higher costs, reduced productivity and low protability just at a time

when agriculture faces a whole series of new production challenges. With climate

change, combined with limited land and water resources, it is by no means certain

that world production is going to keep pace with rising demand for food.

The priority now must not be simply to continue further greening of the CAP in

the old way. The aim now must be green growth: imaginative win-win solutions

which contribute to efcient and competitive production as well as having a positive

impact on the environment.

This is also the opportunity to simplify the current measures and to make themmore transparent for the public.

Copa-Cogecas counter-proposals to those of the Commission are as follows:

EU standards of agricultural production#

All compulsory EU standards currently included under cross compliance should be brought together

under one heading called EU standards of agricultural production and it should be ensured that they are

applied in an equivalent way in all Member States.

Measures to promote green growth#

These would take up the Commissions idea of introducing a new greening element but in a way which

ensures green growth, with 3 main themes:

resource efciency, particularly of nutrients and water

carbon sequestration in agricultural soil and biomass

reduction in GHG emissions

The measures should be voluntary, with payment nanced by the EU budget, and applied uniformly across

the EU. The scope of the measures should ensure that all types of farmers, in all regions and sectors, have

the possibility to participate.

Agri-environmental measures#

Agri-environmental measures should be continued and reinforced through the inclusion of measures to

encourage investment necessary to back-up green growth measures.

Simplifcation#

Current measures should be simplied and new green growth measures must not add to the already heavy

administrative burden on farmers or lead to additional farm inspections.


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Copa-Cogecas detailed proposalsfor streamlining current measuresand encouraging green growth*

Introduction

In its communication of November 2010, the Commission proposes a mandatorygreening component of direct payments under the 1st pillar by supporting envi-ronmental measures applicable across the whole of the EU territory.

Greening is nothing new to the CAP. Since the beginning of the 90s farmers havefaced the introduction of a whole range of new regulations and measures to ensureenvironmental protection and in 2005 cross compliance was introduced.

There are now regulations and directives on the protection of surface and ground-water. For example, controls on nitrates. The number of phyto-sanitary productsfarmers can use has been halved and there are extremely strict conditions on theway they are used and stored. Farmers are required to respect good agricultural andenvironmental conditions to protect against soil erosion and maintain soil structure.There are requirements on buffer strips to protect against water pollution, rules onstocking rates and rules on the protection of landscape features and natural habitats.

And, on top of all this, requirements to ensure traceability and a whole range offar-reaching animal welfare rules and regulations have been introduced .

This has been good news for the environment and animal welfare. The EU has thehighest standards of environmental sustainability and animal welfare in the world.

However, this achievement has come at a cost. It has meant huge adjustments forfarmers requiring them to undertake substantial investment and incur higher annualcosts to meet these standards. There has been no way farmers could recoup theseadditional costs via the market given EU trade policy of opening up of our marketto imports which are not even required to meet the same standards.

The overall impact has been an undermining of the competitive position of EUfarmers, increased dependence on imports of food from outside the EU and acontraction in jobs in agriculture and in related input and food sectors. Farmersincomes are very low 50% of average earnings even in moderately good years and, on average, two-thirds of that income is now dependent on budgetary supportprovided via the CAP.

We cannot lose our production capacity in Europe in this way particularly given the

challenges of the future. Globally, climate change combined with limited land andwater resources is going to put severe constraints on production while demand forfood continues to rise and the volatility of supplies and prices is on the increase. It isimportant that the CAP contributes to the maintenance of Europes own productivecapacity. Agriculture must also play its role in meeting the EUs need to increaseeconomic growth and employment and contribute to climate change mitigation.

Of course environmental concerns will continue to be an important element of theCAP but the priority now must not be simply to continue further greening of theCAP in the old way. The aim now must be green growth: imaginative win-winsolutions which contribute to competitive and efcient production (maintainingproduction capacity, resource efciency, productivity growth) as well as having apositive impact on the environment.

This is also the opportunity to see whether current measures can be streamlinedand how best they can t together with new measures to promote green growth.


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Review of existing

environmental measures

Currently there are four layers of environmental measures under the CAP some of whichare compulsory for farmers and some of which are voluntary, some with a payment tocover additional costs/loss of income and some with no payment whatsoever to cover theadditional costs. The Commission is now suggesting adding a further layer of greening

measures to add to existing measures as shown below:

Environmental measures under Pillar 1:

Existing cross compliance measures

5 sets of environmental concerns are covered by SMR (Statutory Management Requirements based on

specic articles of EU environmental legislation) compulsory for farmers, no payment

Good Agricultural and Environmental Conditions (GAEC) which are compulsory for Member States - in

many cases these are simply the translation of EU environmental legislation or other EU requirementsinto specic national obligations compulsory for farmers, no payment

GAEC standards which are optional for Member States - compulsory for farmers & no payment

New measure proposed by the Commission

new greening measures compulsory for Member States and compulsory for farmers but with payment

(paid for by cut in current direct payments)

Environmental measures under Pillar 2:

agri-environmental measures voluntary and with payment.


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This situation is far from satisfactory:

farmers already implement far-reaching environmental measures.However, they currently gain little credit for this partly because

the measures are not publicised and are presented in a way whichis far from clear for the general public - who outside agricultureunderstands the term cross compliance?

the measures under GAEC, in particular the optional ones, varyconsiderably between Member States. In some countries farmersare obliged to meet a measure under GAEC for no compensationfor the additional costs; in other countries farmers can full thesame measure on a voluntary basis with compensation (as agri-environmental measures under pillar 2) and in other countriesfarmers have neither the obligation nor any support if they adoptsuch a measure

there are also sometimes conicts between achieving good

agricultural conditions and good environmental conditions (e.g.maintenance of landscape features which might cause a conictwith the obligation to avoid the encroachment of unwantedvegetation)

almost all measures which appear on the face of it to be environ-mentally benecial will only be so if they are applied in the rightsituation, under the right conditions and at the right time e.g.requiring cover crops on heavy or wet soils will not be environ-mentally benecial. Farmers are in the best position to decidewhich measure is likely to provide the most benets on their farmand so should be allowed to choose from a list of measures.

The current review of the CAP is therefore the opportunity to reinforce

measures for green growth but also to make the CAP clearer for the public,fairer and more effective in providing existing environmental benets.


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Possible new architecture forcross compliance and measures topromote green growth

Environmental measures under the CAP could be streamlined as follows by havingthree layers of environmental measures (instead of the ve layers which would existunder the Commissions proposals):

EU standards of agricultural production1.(i.e. SMR + compulsory GAEC)

These would be compulsory standards (for Member States and farmers) to ensure EU agriculturalproduction meets science-based standards concerning the environment, public, animal and planthealth and animal welfare i.e. the current SMR+compulsory GAEC. The obligation for farmersto meet these standards in order to receive direct payments (cross compliance) would remainand there would be no additional payment to meet the cost of complying with these standards.However, naming them clearly as EU standards of agricultural production rather than SMR or

cross compliance would make the standards more visible to the public. Compulsory standards underGAEC should be included as part of these standards (i.e. as part of EU standards of agriculturalproduction rather than, as currently, under GAEC compulsory standards) in a way which ensuresequivalent requirements in all Member States.

Measures to promote green growth2.

These would take up the Commissions idea of introducing a new greening element but in a waywhich ensures green growth. The new measures under the heading Green Growth would be applieduniformly across the EU but would be voluntary for farmers and with payment. GAEC standardswhich are optional to Member States would no longer exist as such but could be integrated, whereappropriate, as part of the new Green growth measures. This approach would have the advantageof combining a fairer system across the EU while also providing more exibility to take account of

different conditions at sectoral, regional and even farm level. It would also encourage more evenprogress in implementing environmental measures across the EU than under the current system.More specic details as to how these new measures should be implemented is outlined below.

Agri-environmental measures3.

These would remain more or less the same as at present, with the same level of funding. Theintroduction of green growth measures should not weaken the agri-environmental measures interms of funding or payments received currently by farmers.

The objective of agri-environmental measures should be to encourage farmers to provide additionalservices, in their role as land managers, which go beyond statutory and green growth requirements.The same measure can be compensated either under green growth or under agri-environmental

programmes, or from both if the agri-environmental measure requires the farmer to provide anadditional service.

It should also be ensured that agri-environmental measures include measures which provide acomplementary back-up to green growth measures. For example, some green growth measures(e.g. measures to encourage the production of on or off-farm bio-energy or measures to encourageproduction on terraces) may require initial investment (to build bio-energy converters or to rebuilddamaged terraces) as well as annual support.

The take-up of agri-environmental measures could be signicantly improved if farmers weregiven real incentives rather than just being compensated for additional costs or income foregone,as at present.

If necessary transitional measures should be introduced to ensure that farmers currently undertakingmulti-annual commitments can terminate them without loss of income.


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Copa-Cogecas specifc proposalsfor measures to promotegreen growth

Simplication#

The streamlining of environmental measures under the CAP proposed abovewould contribute greatly to the much-needed simplication of the CAP. However,

specic measures currently under SMR and GAEC also need to be simplied.Furthermore, green growth measures must be easily dened and audited andshould be integrated into the current control system. They must not be allowedto add to the already heavy administrative burden on farmers or lead to additionalfarm inspections.

Type measures#

The type of measures on the EU list should be those which promote green growthi.e. contribute both to competitive and efcient production (maintaining productioncapacity, resource efciency, productivity growth) as well as having a positiveimpact on the environment beyond statutory requirements (e.g. on biodiversity,water, soil/air quality and animal welfare).


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Copa-Cogeca therefore proposes three main themes for the

green growth measures:

Incentives for resource efciency with additional benets for1.

biodiversity

Increased nutrient use efciency (organic and mineral fertilisers) and efciency

improvements in the use of plant protection products e.g. through crop rotation,

precision farming, leguminous crop planting, use of new plant varieties with better

nitrogen use/more disease resistance, use of controlled-release nitrogen fertilisers,

better manure/sludge management, more use of agricultural by-products Many

of these measures will also be benecial for biodiversity.

Increased water use efciency through e.g. efcient irrigation (collective management,

drip/sprinkler irrigation, monitoring of water need, use of cleaned waste water);

retention of rainwater on elds/in ponds; efcient use of water for submerged

crops (rice); controlled drainage

Incentives for reduced GHG emissions (carbon dioxide, methane and2.

nitrous oxide) with additional benets for animal welfare

e.g. green cover crops; under-sown catch crops; low protein livestock feeding and/

or use of feed additives; on- and/or off-farm biogas production using agriculturalresidues/manure. In addition to reduced emissions, a changed diet for animals

and the use of manure for biogas could bring benets to animal welfare.

Incentives for carbon sequestration in agricultural soil3.

and biomass with additional benets for biodiversity

e.g. improved soil & grassland management practices including no tillage/reduced

tillage; retention of grassland and grass cover; agri-forestry and orchards/

vineyards/olive trees; perennial energy crops; buffer stripsThese measures also

bring benets for biodiversity.


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Scope of measures choice for farmers#

A list of measures should be drawn up at EU level afterconsultation with Member States. It should be mandatoryfor Member States to offer all the measures on the EU listother than those not applicable (e.g. in the case of Sweden orFinland - a measure to encourage grass cover in vineyards).

A measure may be very benecial for the environment in certainconditions but have a negative impact under other conditions.Farmers are best placed to judge which measure is likely to

yield the most environmental benets given the particularconditions on their farm. It is therefore very important thatfarmers are allowed to choose measures from the list whichthey wish to apply on a voluntary basis.

It is therefore also very important that the list of measures issufciently extensive to ensure that most farmers will be ableto nd a measure which will bring about benets under theconditions on their farm. The scope of the measures should

take account of the different EU regional and sectoral conditionsso that farmers in all sectors, including landless farmers, andregions have the possibility to participate.

The list should include both annual and multi-annual measures(in the latter case the farmers commitment would be multi-annual but the payment would be made annually).

Some agri-environmental measures currently included underaxis 2 may be included under green growth measures. If sotransitional arrangements must be made to ensure farmers canterminate multi-annual commitments under pillar 2 withoutloss of income.


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Eligibility#

Only active farmers should be eligible for green growth funds. This is consistentwith the aim of green growth measures: to promote competitive and efcientproduction which also provides environmental benets.

There should be no additional penalties for not applying green growth measu-res.

Farmers already undertaking a measure on the green growth list (e.g. in order tofull national statutory requirements which go beyond EU statutory requirements)should be eligible for the green growth payment for that measure.

Level of payment and nancing#

It should be possible to set the level of compensation to be paid either per hectareor a lump sum. The aim would be to encourage farmers to undertake at least 1 or2 measures.

Green growth measures should be 100% EU nanced and ring-fenced.

Applications and Controls#

Farmers should be able to apply for green growth payments as part of theirapplication for direct payments.

Controls should be integrated into current controls. Greening should not give riseto additional farm inspections.


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Annex : Overview of Commissions proposals on greening andCopaCogecas proposed alternative option for green growth

Commission proposal Copa-Cogecas alternative option

Cross compliance

SMR GAEC compulsory for MS GAEC optional for MSNo payment to farmers, cut in their directpayment if not respected

EU agricultural production standards

SMR + GAEC measures which arecurrently compulsory for MS (simplifiedand harmonised)

No payment to farmers, cut in their directpayment if not respected

Greening measures

Set of 4/6 environmental actions,mandatory for MS & all farmers receivingdirect payments. MS could restrict the listto 2/3(?) measures. Hectare paymentfinanced from current direct payments

Green growth measures

EU list of measures (more than 5) whichpromote competitive & efficient farming aswell as having positive impact on theenvironment.

Mandatory for MS, voluntary for farmers.Farmers would be able to choose whichmeasures they implement from the EU list

Agri-environment measures

Some measures currently covered by pillar2 would be transferred to greening underpillar 1. This would facilitate theintroduction of more ambitious measuresfocusing on environmental and climate-related improvements beyond the legalbaseline

Agri-environment measures

Agri-environmental measures wouldencourage farmers to go further than greengrowth measures (i.e. meet stricterrequirements than under green growth) orto undertake existing measures with otherspecific environmental objectives which gobeyond SMR. Measures which provide anecessary back-up to green growthmeasures, e.g. to finance investment neededto back-up green growth measures, shouldbe included.

A farmer who undertook a measure whichwas also a green growth measure wouldautomatically be considered to have met onegreen growth measure. The payment to thefarmer would reflect the green growthpayment plus a supplement for meetinghigher environmental objectives.

* Reserve: ASAJA, COAG


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Phone 00 32 (0) 2 287 27 11

Fax 00 32 (0) 2 287 27 00

www.copa-cogeca.eu

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COPA AND COGECA:

THE VOICE OF EUROPEAN FARMERS AND EUROPEAN AGRI-COOPERATIVES

Copa-Cogeca is the united voice of farmers and agri-cooperatives in the EU. Together,they ensure that EU agriculture is sustainable, innovative and competitive, guaranteeingfood security to half a billion people throughout Europe. Copa represents over 13 millionfarmers and their families whilst Cogeca represents the interests of 38,000 agriculturalcooperatives. They have 77 member organisations from the EU member states.

copa viitorul pac-28.10.2011

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