Germany eases its strong CAP stance

GERMAN support for a strong farm budget cooled this week, with the EU’s biggest paymaster saying all financial decisions have to be seen within the overall context of the EU budget — which Germany wants to limit at no more than 1% of the EU’s GDP.

France and Germany have led calls for a strong EU farm budget. They have been backed by Austria — the first member state to support the stance of the two EU heavyweights.

German state secretary for agriculture, Robert Kloos, emphasised general fiscal restraint at last Monday’s EU agriculture ministers meeting, but Germany and France still agree that moves to distribute CAP subsidies more equally between old and new EU states must be gradual, and not be on a hectare-based rate across the EU.

Polish and British stances in CAP reform talks have also been clarified. Polish agriculture minister, Marek Sawicki, said that older member states pick up too much subsidies, and he insists on fixed-rate subsidies. He wants unchanged CAP funding after 2013, but has called for it to be split equally between direct farm subsidies and rural development.

British agriculture minister, Jim Paice has called for reduced direct subsidies to farmers, and increased funding for rural development and diversification.

“We have a great deal of sympathy for the Polish position, wanting to see much greater equalisation of payment rates across Europe. Whether it is achievable to get to a flat rate, I have my doubts,” said Paice.

Irish Agriculture Minister, Brendan Smith, told last Monday’s EU meeting a strong and adequately resourced CAP is needed, to focus on security of supply of safe, high quality and sustainably produced food.

EU farmer leaders this week also urged ministers to reinforce food production and security, and maintain 28 million agri-sector jobs.

COPA president, Padraig Walshe, said direct payments to farmers and EU market management measures must continue. He welcomed commission proposals to target direct support to active farmers, and to develop the EU farm advisory system. Speaking to Belgian farm minister Sabine Laruelle, he said EU farm incomes plummeted 12% last year and the decline in farmer numbers continues. Farmers could not take further pressure on their livelihoods, and were concerned that the commission’s plans would raise production costs. New proposals for mandatory “greening” of the CAP could only be considered if there was a CAP budget increase.

The Belgian presidency has scheduled a general debate of CAP reform proposals by agriculture ministers for later this month. So far, agriculture ministers, in general, have favoured a sufficiently flexible two-pillar CAP.