The CAP after 2020 - Inra
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the CAP after 2020 MODERNISING & SIMPLIFYING THE COMMON AGRICULTURAL POLICY TARGETED, FLEXIBLE, EFFECTIVE A STRONG BUDGET FOR A STRONG CAP Benjamin Van Doorslaer C.2 Analysis and Outlook Directorate General for Agriculture and Rural Development European Commission #FutureofCAP
• THE FUTURE CAP PRIORITIES AT A GLANCE Simplification and modernisation of the CAP Support to the development of a knowledge-based agriculture Higher ambitions on environment and climate A fairer and more effective distribution of support across MS and farmers Agriculture and 2 Rural Development
• WHY: LESSONS LEARNT FROM ASSESING THE CAP Analysis and wide public consultation confirm major achievements of the CAP… • Increase in EU competitiveness turned the EU into a net agro-food value-added exporter • Positive impact on jobs, growth and poverty reduction spread in all EU rural areas • Relative income stability within a very volatile farm-income and commodity-price environment …but analysis and public opinion also reveal shortcomings to be addressed… • Despite progress, the environmental performance of EU agriculture requires improvement • Productivity growth is mainly driven by labour outflow and less by R&I or investment • Equity, safety net and simplicity questions persist despite CAP efforts to address them …in a changing broader environment within which the CAP operates • Expectations about the level of agricultural and commodity prices changed from CAP post-2013 • The world trade environment has shifted from multilateral to bilateral/regional agreements • New climate change, environmental and sustainability commitments stem from COP21 and SDGs Agriculture and 3 Rural Development
HOW MUCH: CAP BUDGET IN PERSPECTIVE (current prices) in billion EUR as share of GDP 80 0,8% EU-10 EU-12 EU-15 EU-25 EU-27 EU-28 EU-27 70 0,7% 60 0,6% 50 0,5% 40 0,4% 30 0,3% 20 0,2% 10 0,1% 0 0,0% 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Export subsidies Other market measures Coupled support Decoupled support of which direct payments of which green payments Rural development - environment/climate Rural development - other measures Pillar I post-2020 proposal Pillar II post-2020 proposal Current CAP excl UK CAP as share of EU GDP Source: EC-DG AGRI. Note: Budget figures are actual until budget year 2016, programmed from 2017-2020, and based on the MFF proposal for 2021-2027 http://www.europarl.europa.eu/RegData/etudes/BRIE/2018/621864/EPRS_BRI(2018)621864_EN.pdf. Agriculture and 4 Rural Development
WORLDWIDE EXTREME WEATHER EVENTS Natural catastrophes worldwide - number of events 800 700 600 500 400 300 200 100 0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Meteorological events Hydrological events Climatological events Meteorological events: Tropical storm, extra-tropical storm, convective storm, local storm Hydrological events: Flood, mass movement Climatological events: Extreme temperature, drought, forest fire Source: © 2017 Münchener Rückversicherungs-Gesellschaft, Geo Risks Research, NatCatService (January 2017) Agriculture and 5 Rural Development
THE NEED TO DO MORE ON CLIMATE AND ENVIRONMENT Reduction in environmental impact indicators (2010=100) 150 140 130 120 110 100 90 80 70 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Ammonia emissions from agriculture GHG emissions from agriculture Gross nitrogen balance Source: Eurostat. Agriculture and 6 Rural Development
• WHAT FOR: PRIORITIES OF THE FUTURE CAP Strengthening environment and climate action • EU sets wide objectives and list of available types of intervention on air, water, soil, biodiversity • MS Strategic plans define the pertinent actions to meet EU objectives based on MS specific needs • Farmers apply for schemes and comply with stringent environmental criteria defined by EU/MS Better targeting of support • DPs provide an important safety net for farm income lagging behind the rest of the economy • Better targeting of income support improved with internal convergence and redistributive payments • Fairer distribution is improved with degressive cuts above 60 000 € and capping at 100 000 € Relying more on knowledge, innovation and technology • A better link of what we know to what we grow would promote the use of smart agriculture • Anticipating future knowledge needs promoted with more funding for research to address them • Exchange and knowledge transfer relies more on improved functioning of the FAS/EIP Systems Agriculture and 7 Rural Development
THE 9 COMMON OBJECTIVES REBALANCE INCREASE POWER IN FOOD CHAIN COMPETITIVENESS ENSURE CLIMATE CHANGE FAIR INCOME ACTION THE 9 CA OBJECTIVES ENVIRONMENTA L CARE RESPOND TO CITIZENS' P PRESERVE LANDSCAPES CONCERNS in & terms of BIODIVERSITY SUPPORT FOOD & GENERATIONAL HEALTH RENEWAL VIBRANT QUALITY RURAL AREAS 8
Improving water quality Focus on N, modelled through Reduction in N-surplus per ha of UAA (relative to baseline), reduction targets of the gross nutrient Most constraining scenario balance Reduction targets fixed according to actual surplus, lower targets if manure trading takes place Close to 4% N-surplus reduction on average in the EU in the most constraining scenario Farmers adopt more N-efficient technologies (like precision farming) Significant reduction in mineral fertiliser use (with 5% at EU level) Source: JRC, CAPRI model Agriculture and 9 Rural Development
HOW: THE NEW DELIVERY MODEL OF THE CAP ex. foster sustainable development and efficient EU Specific objectives management of natural resources (water, …) EU Set of common Indicators ex. I.15 Improving water quality: Gross nutrient balance on agricultural land Broad types of interventions Identification of needs in MS's CAP Plan Tailor CAP interventions to their needs MEMBER STATES Implementation / Progress towards targets Agriculture and 10 Rural Development
HOW: FOCUS ON PERFORMANCE Multi-annual programming approach for the whole CAP COMMON OBJECTIVES INDICATORS TYPES OF INTERVENTIONS Annual Performance Clearance Assurance Common Output Indicators Linking expenditure to output Annual Performance Review Common Result Indicators Monitoring Checking progress towards targets Policy Interim Evaluation Common Impact Indicators performance Assessing performance towards objectives Agriculture and 11 Rural Development
HOW: THE NEW GREEN ARCHITECTURE OF THE CAP 40% of budget climate Farm relevant Knowledge advisory transfer Level of requirement Cooperation Innovation services Current architecture New architecture Voluntary for Climate & Climate & farmers Voluntary for Environmental Eco‐schemes farmers environmental measures in Pillar II in Pillar I measures in Pillar (AECM, Forestry measures, II investment measures… ) Mandato farmers (AECM, Forestry measures, Greening ry for Mandatory for (3 detailed obligations on crop diversification, New, enhanced conditionality investment measures… ) farmers permanent grassland and EFA) (on Climate/Env, 14 practices built upon EU minima (climate change, water, soil, biodiversity and landscape) for farmers Mandatory Cross‐compliance and requirements from Nitrates Directive, Water (on Climate/Env, 7 GAEC standards (water, soil, carbon stock, landscape) Framework Directive and Natura 2000 Directives) and requirements from Nitrates Directive and Natura 2000 Directives) 12
• FOR WHOM: A FAIRER AND MORE TARGETED DISTRIBUTION Reduction of all direct payments above EUR 60 000 and capping at 100 000 taking into account salaries and labour costs Complementary redistributive income support for sustainability Additional amount per hectare, shift from bigger to smaller and medium-sized farms Complementary income support for young farmers (min 2% of pilar 1 budget) Convergence of income support within Member States: no payment entitlement with a value < 75% of the average (by 2026 at latest) maximum per entitlement Convergence between Member States: for all Member States with direct payments below 90% of the EU-27 average, the gap between their current level and 90% of that average will be closed by half over 6 years Agriculture and 13 Rural Development
THE CAP CYCLE: POTENTIAL RISKS Administrative risks • Inadequate administrative capacity PERFORMANCE Implementation issues Market risks AND ASSURANCE • Insufficient quality of monitoring data IMPLEMENTATION • Un-level playing field between farmers • Insufficient uptake of intervention EVALUATION Timing issues POLICY • Inadequate planning of data monitoring Implementation issues • Timely y evaluation results • Uneven national requirements • Insufficient use of innovative solutions for checks and monitoring • Insufficient performance PLANNING Administrative & timing issues • Inappropriate capacity for planning Lack of vision • Unfair treatment of CAP plans • Lack of support towards modernisation • Delays in approval of CAP plans Inadequate strategy • Lack of ambition with regard to targets • Imbalance between economic, environmental and social dimensions • Complex or incoherent strategy • Inadequate targeting of beneficiaries Agriculture and 14 Rural Development
THE CAP CYCLE: SAFEGUARDS Suspension of payments Performance bonus Financial correction EU audits Action plan for remedial actions PERFORMANCE Interim evaluations (CAP Plan) AND ASSURANCE IMPLEMENTATION Interim evaluation and report EC EVALUATION Reduction in payments Ex-post evaluations POLICY Annual review meetings Conditionality Monitoring committee meetings CAP plan requirements Performance reporting, review and No backsliding rule assurance PLANNING Budget earmarking CAP plan approval EU basic requirements Stakeholder consultation Ex-ante evaluation SWOT analysis EC support Agriculture and 15 Rural Development
• A SIMPLER CAP EU focus on results and performance of the policy Simplification and reduction of administrative burden stems from requirement of the CAP Strategic Plan NEW OPPORTUNITIES Design of a plan adapted to local needs Streamline schemes in both pillars Development of a more targeted framework including for environment and climate-friendly practices Rules defined much closer to their daily reality No EU Commission’s audit on individual beneficiaries FOR BENEFICIARIES Use of technologies for faster, slimmer and more automatic fulfilment of administrative procedures Access to impartial farm advice and assistance in applying for support Less prescription from EU requirements Stability in governance structures (Paying Agencies, Certification Bodies) FOR ADMINISTRATIONS Stability in systems (IACS, LPIS) Streamlining of reporting requirements Agriculture and 16 Rural Development
• A MODERN CAP Huge potential to save time, money: Development of an “area monitoring system” (i.e. a system based on systematic, year-round remote observation of agricultural activities) with potential of replacing classical control methods PUSH FOR NEW TECHNOLOGIES Geo-spatial application (GSA), a digital application that integrates GIS technology, will continue to be the default method of submitting applications Pre-fill of application with as much up-to-date and reliable information as possible (e.g. data from the Land Parcel Identification System) Beneficiaries will get access to improved farm advice Farm advice will cover all requirements of the CAP strategic plan including conditionality Extensive list of new elements in farm advice EXTENDED FARM ADVICE Rural development interventions, financial instruments and business plans (included in CAP Plans), Clean Air Directive, National Emission Ceiling Directive, Animal Health Law, Plan Health Law, Practices against anti-microbial resistance, Risk management, Innovation support (with European Innovation Partnerships), Development of digital technologies Agriculture and 17 Rural Development
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 AVAILABLE AT: MFF Material https://ec.europa.eu/commission/publications/factsheets-long-term-budget-proposals_en CAP legislative proposals https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/future-common-agricultural-policy_en Impact Assessment https://ec.europa.eu/agriculture/policy-perspectives/impact-assessment/index_en.htm https://ec.europa.eu/agriculture/consultations/cap-modernising/2017_en Background AGRI material https://ec.europa.eu/agriculture/index_en.htm https://ec.europa.eu/agriculture/statistics_en https://ec.europa.eu/agriculture/cap-indicators_en Thank you for your attention! Agriculture and 19 Rural Development
• THE CAP IN THE MFF CONTEXT Continuity within new EU priorities in a post-BREXIT MFF • A 5% cut in CAP expenditure, but a more targeted approach to improve efficiency and performance • The "C" in the CAP remains strong, implies a better sharing of responsibilities between EU and MS • Better link to other policies (esp. environment, climate, research, health) improves mutual efficiency Main changes in the CAP • Stronger environmental/climate ambition with conditionality, echo-schemes and strategic plans • Specifying the objectives that add EU value render the CAP more sustainable, simpler and modern • Better targeting of support improves synergies between the economy and the environment Main expected impact from changes • Stronger reliance on research, knowledge transfer and digital economy to modernise CAP and sector • A needs-based approach increases subsidiarity and flexibility to promote common EU objectives • The CAP shift from compliance to performance parallels MFF shift towards more focus on incentives Agriculture and 20 Rural Development
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