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