Brussels, 10/10/2011 (Agence Europe) - On Wednesday 13 October, the European Commission is expected to propose changes to the common agricultural policy (CAP) after 2013 to bring it more into line with environmental requirements, make it fairer in the way aid is shared out, and more acceptable to European tax payers. Macro-economic conditionality (suspending payments in countries which infringe stability and growth pact rules), already applied to the structural funds, may very well be extended to agricultural funding, at least to payments under the second pillar (rural development).
It is planned that 70% of direct payments go to supporting farmers' basic income (payments separated from production). The Commission will propose reducing the amount of direct payments to farmers: a 20% reduction for payments between €150,000 and €200,000, a 40% reduction between €200,000 and €250,000, and a 70% reduction between €250,000 and €300,000. Because of capping, aid will not exceed €300,000. Calculation of the capping will be done by subtracting total emoluments. The Commission will propose that 30% of direct aid should be allocated to agricultural practices that re good for the environment (no capping and aid proportionate to the size of the farm). The three climate- and environment-friendly agricultural practices that have to be respected are: - diversification of crops; - permanent grasslands; - an ecological reserve (at least 7% of land must be given over to ecological ends). The Commission will also propose an optional simplified (no checks) schedule for small farms (up to 10% of all direct payments) in the form of flat rate aid set at between €500 and €1,000; - a supplementary payment (of up to 5% of the national direct payment allocation) for young farmers setting up (for five years); - an optional additional payment (up to 5% of the national allocation) for farmers in less-favoured rural areas; - coupled aid (that is, retaining the link between the amount of aid and quantities produced) may be paid to farms facing difficulties.
To redistribute aid, countries which have higher payments will be penalised by a reduction (which will not, however, be more than 10% of the country's envelope). Redistribution is planned towards countries which have less than 90% of the average payments per hectare. For the countries where direct payments are less than 90% of the EU average, it is planned to reduce this variation by one third.
On market measures, the Commission will propose retention of a safety net (intervention and private storage) for many products. Within the framework of rural development, it suggests a risk management “tool kit” (support for mutual funds and insurance). (LC/transl.rt)