Brussels, 30/06/2011 (Agence Europe) - Although the common agricultural policy (CAP) Single Payment Scheme has contributed to the attainment of two of the main objectives of the CAP its implementation has led to “a number of questionable features”. That is the conclusion reached in the first special report on the Single Payment Scheme (SPS) of the common agricultural policy published by the European Court of Auditors on Wednesday 29 June.
The Single Payment Scheme (SPS) is the main mechanism for providing EU farmers with financial support. It seeks to encourage farmers to better respond to market demand and to promote agricultural practices that protect the environment. The SPS is currently applied in 17 of the 27 EU member states, with related expenditure amounting to some €28.8 billion in 2009.
The Court of Auditors' report focused on the beneficiaries of the policy, the conditions of access to the scheme and the definition of eligible land. It also examined to what extent the scheme contributes to the objectives of supporting farmers' income and to maintaining agricultural land in good agricultural and environmental condition (GAEC). The Court found that the SPS has contributed to the attainment of these two main objectives of the CAP. However, the overall conclusion of the audit is that the implementation of the scheme resulted in a number of questionable features: - the definition of the beneficiaries of the scheme was formulated, and subsequently applied, in a way that permits persons or entities not engaged in agricultural activity, or only marginally so, to benefit from SPS payment: the Court found cases where the system encouraged investment by operators who have little interest in farming as an activity but who exploit the guaranteed returns that the SPS provides; - in some member states the installation of new farmers is often hampered by present conditions of access to payments entitlements (which may entail substantial investment); - the specifications of land eligible for EU aid and of eligible agricultural activity are loosely defined, with the result that farmers may receive payments without having to carry out any maintenance activity and there is no direct link between the level of the SPS aid and the costs incurred in maintaining land in good agricultural and environmental condition; - some twenty different variants of the SPS are applied across the EU: under the main variant (the historical model), aid is calculated on the basis of what farmers received in the years 2000-2002 and, over time, payments have become divorced from current farming conditions in the different regions; - the SPS primarily benefits few but large beneficiaries.
Based on its findings and conclusions, the European Court of Auditors has made a number of recommendations for consideration by the Commission. These include: - directing aid to “active” farmers; - defining eligible land and agricultural activity more clearly in order to exclude activities that do not increase agricultural productivity as well as parcels not devoted to agriculture. It further recommends that consideration be taken of the cost of activities that positively contribute to the preservation or improvement of the environment. The Court also recommends that the value of entitlements be based on current farming conditions in the various regions of the EU and that a more balanced distribution of SPS aid between farmers be sought. (O.L./transl.rt)