The COMMON AGRICULTURAL - FutureofCAP

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The COMMON AGRICULTURAL - FutureofCAP
The COMMON
AGRICULTURAL
POLICY post-2020
Legislative
Proposals

#

FutureofCAP
The COMMON AGRICULTURAL - FutureofCAP
Index
 1. The context
 2. The budget proposals
 3. The legislative proposals for the future CAP
 4. The next steps

                           2
The COMMON AGRICULTURAL - FutureofCAP
1. The context

                 3
The COMMON AGRICULTURAL - FutureofCAP
THE ROAD TO A FUTURE CAP AFTER 2020

  7 JULY   29 NOVEMBER    FROM      JAN-MARS   2 MAY   1 JUNE   FROM

                         DECEMBER                               JUNE

   Public            Consultatio      Proposals for a          Inter-
conference            ns on the        Multiannual         institutional
 “The CAP,          Communica            Financial         negotiations
Have yourAdoption of     tion        Framework post
                                             Presentation of the
   say!”                       Impact      2020
             the                            legislative proposals
                             assessment
          Communica
             tion
                                       4
The COMMON AGRICULTURAL - FutureofCAP
2. The budget proposals

               5
The COMMON AGRICULTURAL - FutureofCAP
THE PROPOSAL FOR A MULTI-ANNUAL
          BUDGETARY FRAMEWORK

Source: European Commission
                              6
The COMMON AGRICULTURAL - FutureofCAP
THE CAP BUDGET BY MEMBER STATE

70 000

60 000

50 000

40 000

30 000

20 000

10 000

    0
         FR ES DE IT   PL RO EL HU IE      PT AT CZ BG DK SE FIN NL LT HR SK BE LV EE      SI   CY LU MT

                              Développement rural   Autres (marchés…)   Paiments directs

                                                        7
The COMMON AGRICULTURAL - FutureofCAP
3. The legislative proposals for
   the future CAP

                8
The COMMON AGRICULTURAL - FutureofCAP
THE MAIN PRIORITIES OF THE
        FUTURE CAP
1. Modernisation and simplification of the policy framework

2. Innovation and knowledge for tomorrow’s agriculture

3. Resilience of European agriculture, with a more equitable & more
   efficient distribution of public support through a better targeting of aids

4. Strengthening of environmental and climate action

5. Growth and jobs in rural areas and encouraging generational renewal

6. Addressing citizens’ concerns on sustainable agricultural production

                                      9
The COMMON AGRICULTURAL - FutureofCAP
1. A NEW GOVERNANCE
                                                                               Annual and
                     Development of a national CAP                             multiannual
The EU will assess   Strategic Plan (MS)                                       monitoring
and approve the      Identification of needs, selection of tailored            (MS, EU)
                     interventions and quantified objectives,                  Annual report on the
plans and monitor    responsibility for the implementation                     performance of the
                                                                               policy implementation
progress.

                                                   Implementation tailored to local
  Definition of the European
                                                   realities (MS)
  framework (EU)                                   In order to improve the economic, social and
  9 objectives, indicators to monitor              environmental performance of farms
  implementation, types of possible
  measures (interventions)
                      Stability in national governance structures
                      (paying agencies, certifying bodies and systems in the
                      management of agricultural plots)

                                                   10
THE 9 COMMON OBJECTIVES

               INCREASE                      REBALANCE

     COMPETITIVENES                          POWER IN FOOD CHAIN

                     S
     ENSURE                                            CLIMATE CHANGE

     VIABLE                                            ACTION

    INCOME
                                  THE 9
    KNOWLEDGE &                                            ENVIRONMENT
    INNOVATION
                                  CA
                                OBJECTIVES
                                                           AL

                                                           CARE

                                                       PRESERVE
 RESPOND TO

  CITIZENS'                          P                 LANDSCAPES

                                                       &
CONCERNS in
                                             SUPPORT   BIODIVERSIT
    terms of
                                             GENERATIONAL
                                                     Y
    FOOD &
                      VIBRANT                RENEWAL
    HEALTH                            11
GUARANTEES IN TERMS OF
               IMPLEMENTATION
                            Performance bonus                         Suspension of payments

                             EU audits                                      Financial correction

                                                        PERFORMANCE
         Action plan for                               AND ASSURANCE
                                                                                            Interim evaluations (CAP Plan)
         remedial actions
  Reduction in payments            IMPLEMENTATION                                             Interim evaluation and report

                                                                               EVALUATION
                                                                                              (EC)
Annual review meetings
                                       POLICY

                                                                                               Ex-post
 Monitoring committee                                                                          evaluation
 meetings

  Performance reporting,                                                                                    Conditionality
  review and clearance                                                                                    CAP plan content
                                                                                                          requirements
                                                          PLANNING                                     No back-sliding rule
                                                                                                     Budget earmarking
                 CAP Plan approval                                                               EU basic requirements
                Stakeholder consultation                                   SWOT analysis
                                                    EC support        Ex-ante evaluation
                                                                                                            Agriculture and

                                                                                                            Rural Development
                                                                 12
2. DEVELOPING A KNOWLEDGE-
                    BASED AGRICULTURE
Cross-cutting objective on knowledge,Strengthening of the Agricultural Knowledge

innovation and digitalisation        and Innovation System

                                                             Specific budget of EUR
Each CAP strategic plan will
                                    Advice, training,
                                                             10 billion in Horizon
include a section on how to
                                    innovation and
                                                             Europe for food,
stimulate the exchange of
                                    knowledge support
                                                             agriculture, rural
knowledge and innovation & the
                                    in Rural Development
                                                             development and the bio-
development of digital
                                                             economy.
technologies in agriculture
                                                                          Continuation of

                                                                          the agricultural

                                                                          European

                                                                          Innovation

                                                                          Partnership

                                        13
3. ENSURING A FAIRER AND MORE
            EFFICIENT SUPPORT
    Priority to support small and medium-sized holdings and young farmers:

                      l   Reduction of direct payments above EUR 60,000 per
                          holding and capping beyond EUR 100,000 (taking into
                          account the cost of labour)
                      l
                      l   Compulsory redistributive payment and internal
                          convergence of the amount of aid per hectare
                      l
                      l   Minimum of 2 % of the national envelope for direct
                          payments reserved specifically for young farmers

                      l   ‘External convergence’ (rebalancing the level of aid per
                          hectare between countries)
l   Allocation of income support to ‘genuine’ farmers (to be defined by MS)
l
l   Coupled income support for sectors in difficulty to increase competitiveness,
    sustainability and quality
                                           14
OVERVIEW OF NEW DIRECT PAYMENTS
                                                      Reduction of all direct payments
                                                       Above EUR 60 000 and capping                                      To DP (primarily for redistributive income support
                                                  at 100 000 (labour cost taken into account)                            for sustainability) and/or to RD

                                                             Coupled income support
                                                    •       Wide range of sectors (new: non-food crops with potential to replace fossil material
Enhanced with regard to environment and climate

                                                            in the bio-economy)
                                                    •       Up to 10% (+ 2 % for protein crops) of DP envelope, to be decided by MS

                                                     Complementary income support
                                                                                                                         Eco-schemes
                                                           for young farmers
                                                    •       Additional payment per hectare              •       For practices beneficial to
                                                                                                                                                                Round–sum
            Conditionality rules

                                                    •       For young farmers who are newly set                 environment and climate                         payment for
                                                            up for the 1st time                         •       Requirements and amount per                    small farmers
                                                                                                                hectare to be determined by MS

                                                             Complementary redistributive income support for sustainability

                                                        •   Additional amount per hectare                   •    Amount(s) per hectare, ranges of
                                                        •   not exceeding national average                       hectares and max number of
                                                                                                                                                           •   Round sum
                                                        •   From bigger to smaller and                           hectares to be determined by MS               payment to be
                                                            medium-sized farms                                                                                 determined by
                                                                                                                                                               MS
                                                                       Basic Income support for sustainability (BISS)                                      •   Replacing all
                                                        •   Possibility for uniform rate per eligible       •    If with payment entitlements (PEs):           DPs
                                                            hectare or differentiation by groups of              - further internal convergence (no PE     •   Optional for
                                                            territories facing similar socio-economic            value < 75% average by 2026 at                farmers
                                                            or agronomic conditions                              latest)
                                                        •   Minimum requirements (min. farm size)                - maximum value of PE
                          •

                                                  Definitions (specified by MS): Genuine farmers, young farmers, agricultural activity,
                                                  eligible hectare, agricultural area (arable land, permanent crops, permanent grassland)
                                                                                                                    15
ADJUSTMENTS TO THE COMMON
       MARKET ORGANISATION
The CMO instruments remain largely unchanged: safety net comprising
public intervention and aid for private storage and exceptional measures, but
also marketing standards and rules on the cooperation of farmers, etc.

                              Integration of the existing sectoral
                               programmes (for fruit and vegetables, wine,
                               olive oil, apiculture and hops) in the
                               framework of the CAP Strategic Plans

MORE EFFICIENCY               Extension of the possibility of setting up
      AND
      AND                      new sectoral programmes covering
SIMPLIFICATION
SIMPLIFICATION                 additional agricultural sectors (financed by
                               up to 3 % of the direct payment envelope)

                              Amendments of some rules on GIs in order to
                               make them more attractive and easier to
                               manage

                                      16
4. INCREASED AMBITION FOR ENVIRON-
                   MENTAL AND CLIMATE ACTION
                                                                                             Farm                                 Innovation
                                                               Level of                                       Knowledge                &
                                                                                            advisory           transfer
                                                               requirement                  services                                Co-op'n

                                                                                                                                                 Investment
                     Current architecture                                                          New architecture

                                                Climate &                                                Climate &

                                                                                                                                                Voluntary for
                                              Environmental

                                                                                                                                                  farmers
                                                                                          Eco-schemes environmental
                            Voluntary for
                              farmers

                                             measures in Pillar                             in Pillar I measures in
                                                    II                                                    Pillar II
                                              (AECM, Forestry measures,
                                                                                                                     (AECM, Forestry
                                               investment measures… )
                                                                                                                   measures, investment
              Mandatory
              for farmers

                                              Greening                                                                 measures… )
                                                                                         New, enhanced conditionality

                                                                                                                                               Mandatory for
                                   (3 detailed obligations on crop

                                                                                                                                                 farmers
                              diversification, permanent grassland and                     (on Climate/Env, 14 practices built upon EU
                                                  EFA)                                   minima (climate change, water, soil, biodiversity
                                                                                         and landscape) and requirements from Nitrates
for farmers
Mandatory

                                        Cross-compliance                                 Directive, Water Framework Directive, SUD and
                  (on Climate/Env, 7 GAEC standards (water, soil, carbon stock,
              landscape) and requirements from Nitrates Directive and Natura 2000
                                                                                                     Natura 2000 Directives)
                                          Directives)

                                                                                    17
INCREASED AMBITION FOR
                                        ENVIRONMENTAL AND CLIMATE ACTION
Voluntary for farmers

                                Compensation for agri-                                         Every Member State to develop an

                                environmental and/or                                           “eco-scheme” to support and/or

                                climate commitments                                            incentivise farmers to observe

                                undertaken by farmers that go                                  agricultural practices beneficial for

                                beyond mandatory                                               the climate and the environment
  Compulsory for farmers

                                New conditionality: strengthening
                                requirements                                                   New obligations (for the
                                of the requirements to be met by
                                                                                               conservation of carbon-rich soils,
                                farmers in order to ensure their
                                                                                               to improve water quality)
                                contribution to achieving ambitious

                                environmental and climate
                                                                                               Integration of the greening
                           30 %objectives
                                of rural development funding          Possible transfer of 15 % from the first pillar to the second to
                                                                                              measures
                           will be allocated specifically to the      finance specific actions in favour of the environment and
                           environment, climate and                   climate
                                                                           18
5. SPECIFIC FOCUS ON YOUNG PEOPLE
                                                    Top up Payment in P1
                          Minimum 2 % of value of
                            DP envelope for YF
                                                    Installation grants P2
                                                       Up to € 100 000
                               Investments
                             (Grants/Financial
                               Instruments)

MS Strategy for Young
                          Knowledge & Innovation
Farmers (incl. national                             Land Mobility Schemes
                                 Support
    instruments)

                                                     Retirement Planning
                               Co-operation
                                                      and exit payments

                                                     Farm Partnership –
                             Risk Management
                                                       Mentoring etc.
6. CITIZENS' EXPECTATIONS

     Specific objective to improve the response to citizens'
     expectations on food and health, including food waste,
     healthy, nutritious and sustainable food, as well as
     animal welfare. Monitoring to be ensured by relevant
     indicators.

     Stronger conditionality regarding animal health, plant
     health and animal welfare

     Fruit and milk school schemes kept

     Support to organic farming and for participating in Union
     quality schemes

                     20
TO SUM UP

1. A modernised and simplified CAP

2. Supporting the development of a knowledge-based
   agriculture

3. Fairness and efficiency in the distribution of support
   between Member States and farmers

4. Higher ambitions for environment and climate

5. Ambition for rural areas intact and increased for young
   farmers who enter the sector

6. Addressing societal demands regarding sustainable food
   and health
                          21
5. Next steps
A TENTATIVE OUTLOOK

2018 - 2019   Debate in the European Parliament and in the Council on
                                the CAP proposals

Spring 2019    Possible agreement of the next MFF 2021-2027 by the
                         Heads of States and Governments

Spring 2019   Possible adoption of the next CAP 2021-2027 by the co-
                                     legislators

  May 2019             Elections of the European Parliament

                      Preparation of the CAP implementation

                    Possible entry into force of the new CAP
     2021
REPORTS AND MORE INFORMATION :
On CAP legislative proposals, Impact Assessment and Background
https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/fut
ure-common-agricultural-policy_en

                                    On MFF Material
 https://ec.europa.eu/commission/publications/factsheets-long-term-budget-proposals_en
                        http://ec.europa.eu/budget/mff/index_en.cfm
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