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Europe Daily Bulletin No. 10468
Contents Publication in full By article 17 / 28
GENERAL NEWS / (ae) eu/agriculture

Greening of 30% of subsidies poses problem for sector

Brussels, 06/10/2011 (Agence Europe) - The European Commission's proposal for “greening” of the common agricultural policy (CAP), accounting for 30% of direct payments to famers, is challenged by those in the sector. It is also criticised in a number of capitals, e.g. in Germany. The Commission is to present, on Wednesday 12 October, its proposals on the post-2013 CAP.

During a seminar on Thursday 6 October on the future of the CAP, Gerd Sonnleitner, who heads the Copa (European farmers), said the new CAP reform “must be used to refocus on reinforcing the production role of farmers”. In his view, “direct payments to farmers must continue in the future”. Those working in the sector remain concerned by the Commission's proposals on the compulsory “greening” of certain CAP payments, which would depend on compliance with environmental conditions. Sonnleitner said this “will add more costly burdens onto EU farmers, thus threatening their competitiveness and economic viability”. He finds it “does not make sense” to require every single farm to stop producing on a certain percentage of the land (ecological set-aside), in the wake of growing world food demand. “We are consequently calling for measures which will promote green growth. Measures must be economically viable and voluntary for farmers to apply”, he said. Furthermore, Copa considers that the Commission is moving in the right direction concerning the redistribution of direct payments and the move away from historic payments “but the need for fair and equitable treatment of all farmers taking into account differences in conditions must be respected”.

Paolo Bruni, the president of Cogeca (European agri-cooperatives) highlighted the need for effective and flexible market management measures. Such measures, he said, are essential to combat increasing market volatility. However, he added that market measures proposed by the Commission (as part of the reform) and the introduction of an emergency fund are to be “explored further to see if they will provide adequate stability in an increasingly volatile market”. Bruni believes it is essential to strengthen the producer organisations' position in the food chain to meet the growing world food demand. Farmers currently receive only a fraction of the retail price. The role of producer organisations was reinforced with the reform of the EU fruit and vegetable and EU dairy regimes, but “this must be done in other sectors”, he said. Copa-Cogeca “wants to ensure in the future the maintenance of a strong common agricultural policy, a strong single market backed by a strong EU budget”, Bruni said.

During a press conference after the seminar, the chairman of the European Parliament agriculture committee, Paolo De Castro (S&D, Italy) supported the principle of greening but not at any price. He called for a future CAP that is stronger and less bureaucratic. Also, he said, companies must be strengthened and sectors stabilised. On price volatility, he claimed that farmers cannot hold up against a price fall if there is no compensation. The CAP must meet global food security. “Increasing agricultural potential while polluting less, that is the great challenge facing us in tomorrow's world”, De Castro opined. (LC/transl.jl)

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