Brussels, 19/03/2010 (Agence Europe) - On Wednesday 17 March, the European Parliament agriculture committee organised a hearing on the future of common agricultural policy (CAP) after 2013, i.e. after the end of the EU's current financial framework for 2007-2013. Most speakers - whether MEPs, representatives of agricultural organisations or experts - recommended: - maintaining a common policy, and not introducing co-financing (combined funding from EU and national budgets); - keeping certain tools in place (market measures to meet price volatility); - and rewarding farmers for the environmental advantages they bring (preservation and restoration of soil, water quality management, preservation of biodiversity of land).
Paolo de Castro, Chairman of the committee on agricultural and rural development, said it will be necessary to continue the work of CAP modernisation in future, a task that began 15 years ago and entails “ambitious reform for enhancing the value of rural territory and produce”. He said farmers also provide a public service. Finally, he called for the definition, in future, of a CAP that “meets the expectations of all the challenges that our society has to face”.
George Lyon (ALDE, Britain), who is the EP's rapporteur on the future of the CAP, identified three main challenges: - responding to the economic and financial crisis “with the pressure that that has on budgetary issues and on how much should be given to the EU budget and to agricultural spending”; - ensuring equal treatment of farmers in all member states; - and doubling agricultural production in the next 30 years to meet the growing demand for food (the world population is expected to rise from 6 to 9 billion by 2050). This is a problem of food supply security, with very major environmental constraints (land, water, energy, preservation of biodiversity, etc).
The representative of the European Commission, Tassos Haniotis (DG Agriculture), said first of all that CAP must remain a common policy and keep its two pillars (direct aid and market spending, on one hand, and rural development, on the other), on condition that it adapts to face new challenges. In future, the CAP should adapt to the combined effects of the economic crisis and climate change, in a context of limited increases to budgetary resources. He summed up by calling for certain market measures to be kept as a safety net in the event of crisis, and keeping direct payments to farmers while achieving greater harmonisation of support levels (gradually eliminating traditional references that still largely determine the level of subsidies). Several questions are raised regarding the “convergence” of direct aid levels: - timetable, the taking into account of natural disadvantages, and closing the gap between the status quo and a purely flat-rate system. Member states should also be allowed to choose measures (including direct payments) from a “tool box”, allowing improvements in the environment, the profitability of companies, and the maintaining of rural communities, the Commission states.
Gerd Sonnleitner, Vice-President of COPA (European farmers association), pointed out that the “CAP has already been modernised four times since 2003”. “The basic structure of the CAP, with two pillars and adequate funding, must be maintained”, he said. In future, it will be necessary to “do everything to increase farmers' competitiveness and we shall need specific measures to bring price volatility under control and face the challenge of climate change”, Sonnleitner said. He above all recommended a “safety net” to offset loss of income, and measures allowing outlets for produce. The CAP is often considered as being too expensive, he said. One should therefore underline the advantages of the CAP (quality foodstuffs, territorial maintenance, etc).
According to Rafael Hernandez of European Coordination Via Campesina, CAP has failed. He suggested a “Common Agricultural and Food Policy” (CAFP) based on “food sovereignty”. A CAFP would give priority to the access to food for all, to development of rural work by upholding prices, and a fair breakdown of public subsidies. It would seek to meet the challenge of climate warming and protection of the environment.
Peter Kendall, President of the National Farmers' Union (Britain), called on the EU to give farmers the stability they need to plan investment. In the United Kingdom, farmers often say they do not wish to depend on direct European subsidies for ever and ever. However, since the crisis, “we need these subsidies and we fear we shall need them for some time”, he acknowledged. He went on to underline that reflection is needed on how to get rid of surpluses.
Albert Jan Maat, Chairman of LTO (Netherlands) and former MEP, said the CAP needs to keep a sufficient budget after 2013. The reformed CAP should allow farmers to be paid for the public good that they provide. One must stop dividing up the agricultural landscape, he said, recommending market measures for the cereals sector.
Arlindo Cunha, former MEP and now academic specialist on the CAP, spoke of the challenges facing the CAP and a possible political response, including reform of the single payment system and market mechanisms. (L.C./transl.jl)