CAP reform document’s three options

THE European Commission document on reforming the €55 billion Common Agricultural Policy outlines three options, ranging from a gradual change from the present system to a radical overhaul that would phase out direct payments in their current form.

The thrust of the reforms was described by Agriculture Commissioner Dacian Ciolos as making the CAP “greener, fairer, more efficient and more effective”.

The broad policy options, which are being assessed for their economic and other impacts, will form the basis of legislative proposals in June following consultation with stakeholders. The new rules will have to be agreed with the Parliament, as well as by member states.

While the sum of money available for the future CAP has not been decided, it is expected to be roughly similar to the sum available now, although a number of countries are pushing for it to be reduced and the money spent on other policies.

A major conference earlier this year identified three main objectives CAP should achieve: producing safe and sufficient food; rewarding farmers for policies coping with environmental and climate change considerations; recognising farmers’ role in keeping rural areas alive and maintaining a living countryside.

The proposals are designed to ensure small farmers, those in disadvantaged areas and those producing more food receive a larger proportion of the funds than they do currently.

Direct aid should be targeted at active farmers who really need it.

Commissioner Ciolos wants a single direct payment system for farmers throughout the EU as there can be a fivefold difference in payments for farmers in new and old member states. For old member states it is based on production volumes from 2000–2002, while for the newer members it is based on a single amount per hectare.

The future of direct payments could be based on basic income support through granting a decoupled direct payment that provides a uniform level of support to farmers in a member state or region and based on transferable entitlements that need to be activated by matching them with eligible agricultural land, plus fulfilment of cross-compliance requirements.