Brussels, 08/06/2012 (Agence Europe) - More convergence for direct payments within the EU compared to the Commission proposal, more flexibility for greening and approval on capping of subsidies to large farms - these are the main ideas set out in the draft report by Luis Manuel Capoulas Santos (S&D, Socialist) on the direct payments section of reform for the common agricultural policy (CAP). His report, as well as those on common market organisation and rural development, will be presented to the European Parliament agriculture committee on 18 June.
Redistribution of direct payments between member states. The rapporteur suggests national envelopes for direct payments should be adjusted so that member states whose level of direct payments per hectare is below 70% of the Union average will see the difference compared to that average fall by 30%. The difference should be reduced by 25% for member states whose level of direct payments is between 70% and 80% of the average and, for member states whose level of direct payments is above 80% of the average, the difference should be reduced by 10%. After application of these measures, no member state should receive under 65% of the Union average.
Convergence of direct payments within member states. The rapporteur suggests that, by 2019 at the latest, all payment rights in a member state or region should have a single unit value or differ by 20% at most from the average unit value (20% alignment being operated from 2014). Member states may take measures so that, in the event of reducing payment rights at farm level, such rights activated in 2019 are not more than 30°% below those activated in 2014.
Greening of direct payments. According to Capoulas Santos, farmers may benefit from the greening element (30%) in direct payments if they: (1) grow two different crops on their arable land when that land covers 5-20 hectares (each of the crops having to cover at least 10% of the land), and three different crops when arable land covers more than 20 hectares (the main crop should not cover over 70% of the land, and the two main crops not more than 95% of the land); (2) maintain existing permanent grasslands and traditional pastureland; and (3) maintain existing permanent crops on their farms (olive groves, vineyards, etc), together with specific agronomic practice; and (as proposed by the Commission), when they have an ecological focus area within their agricultural land surface.
Farmers would be eligible for the greening payment if they comply with the requirements set out in the 2007 regulation on organic production, if they sign up to agri-environmental programmes in the context of rural development, or if their farms are certified by national or regional certification regimes. According to Capoulas Santos, farms under 50 hectares in size should be exempted from the obligation of crop diversification when 80% of the land area is made up of grasslands, pastures or permanent crops. The ecological focus area criterion (land left fallow, terraces, hedges, spreader strips, nitrogen fixing crops, wooded areas) would apply to 7% of the eligible surface area, as the Commission suggests, in the case of farms of over 20 hectares in size. This percentage would be reduced by at least 5% should producer groups set up continuous, adjacent ecological focus areas.
Transfer. Former Portuguese Agriculture Minister Capoulas Santos considers that member states in a less advantageous position with regard to rural development must be able to transfer more than 10% of funds from the first pillar (direct aid) to the second pillar (rural development), without the need for national co-financing.
Coupled support. Capoulas Santos suggests that such support should be granted to the following production sectors: cereals, oilseeds, protein crops, grain legumes, leguminous fodder plants, soya, flax, hemp, rice, nuts, starch potatoes, milk and dairy products, seeds, sheep and goat meat, beef and veal, oil olive, silk worms, dry fodder, hops, sugar beet, sugar cane and chicory, fruits and vegetables and short rotation coppices. This support may not be granted except to sectors or regions encountering difficulties.
Capping. The rapporteur suggests that the instalment of €250,000 to €350,000 paid to a farm should be reduced by 80% and not by 70% as the Commission recommends (capping remaining fixed at €300,000).
Definition of “active farmer” eligible for direct subsidies. Each member state should be responsible for this definition, Capoulas Santos says. He nonetheless sets out a negative list of entities such as transport companies, airports, real estate companies, sports management companies, camp sites and mining companies.
Young farmers. Capoulas Santos suggests the limit for granting additional payments to young farmers should be increased for all member states from 25 ha to 50 ha.
Small farmers. The specific regime for this category of farmers would be voluntary and not compulsory, the rapporteur says. It should involve support that does not exceed 25% of the average national payment per beneficiary, instead of the 15% recommended by the Commission, and must not be above €1,500, instead of €1,000. The share of the national envelope devoted to this would be limited to 15% instead of 10%. (LC/transl.jl)