Brussels, 23/01/2013 (Agence Europe) - In a report published on 22 January - ahead of the European Council on 7-8 February which will focus on the 2014-2020 multiannual financial framework - Copa-Cogeca says that agricultural spending must be “kept at least at current levels until 2020”. With world food demand expected to rise by 70% by 2050 and fears mounting over the extreme volatility on markets and poor weather, “it would be totally irresponsible to make further cuts to the common agricultural policy (CAP) budget”, which has been steadily declining for some years. “The role of a strong CAP with a strong budget behind it in the future will be more important than ever”, according to the agricultural associations.
In Copa-Cogeca's view, the CAP budget represents a very small investment for substantial and wide-ranging returns for European citizens that are sometimes taken for granted. “If we are to maintain these benefits, we must also maintain a strong CAP backed by a strong budget”, the report states. The agricultural organisations explain that the CAP budget for 2014-2020 will enable: (1) employment for nearly 40 million people; (2) market stability and a choice of safe, secure, quality food supplies at affordable prices for 500 million consumers: consumers now only spend 14% of their income on average on food. However, food production is very dependent on weather conditions. Over the last 17 years, production cost increases have far exceeded the prices farmers receive for their products. Market volatility has become more extreme. However, the CAP provides tools such as EU public intervention which help regulate the market. Faced with the considerable purchasing power of a few distributors, farmers can also improve their position by joining forces in cooperatives. In addition, the CAP finances the distribution of fruit and vegetables and milk in schools, thus helping children to develop healthy eating habits; (3) additional public goods (attractive countryside, maintaining biodiversity, water management): farmers look after three quarters of the EU territory; (4) sustainable production (protection of the land and environment and respect for high animal welfare standards): farmers' income in the EU represents less than half the average level of earnings in other sectors (average over 2009-2011 was 31% in the EU27 and 46% in the EU15). Without the CAP, the EU would become “much more dependent on imports” which do not have to meet the EU's high production and animal welfare requirements, “and the EU would have no control over the way they are produced”; (5) a contribution to combating climate change: the EU agricultural sector accounts for only 9% of total EU greenhouse gas emissions and managed a 22% reduction over the period 1990-2010, in comparison with under 15% in other sectors. The CAP can help farmers to provide an answer to climate change: agricultural crops absorb carbon dioxide emissions in the soil and can also be used to produce bio-fuel and other renewables; (6) a boost to the economy, given that the agriculture sector is an important player in EU trade; (7) a major role for the CAP in the construction of Europe as it is the only common policy, at a cost of less than 1% of EU governments' total public expenditure. Given that the CAP is the only common policy financed entirely by the EU budget, it is not surprising that it accounts for a relatively large share of the EU budget. If, for example, expenditure on research was also totally integrated in this way, its budget would be three times that of the CAP, the report states. In addition, despite many more countries joining the EU, expenditure on the CAP, including expenditure on rural development, fell from 71% in 1980 to 40% in 2013. The total EU budget is only 2.3% of governments' national expenditure and the CAP only 0.93%. “In return for €110 a year, EU citizens are assured guaranteed stable supplies of high quality food”, Copa states.
Pekka Pesonen, the secretary general of Copa-Cogeca, said: “Any further cuts in the CAP budget are not acceptable. The Commission proposal would already mean a 10% cut in the CAP budget and the previous proposals by Council President Mr Herman Van Rompuy would have resulted in huge cuts in direct payments to farmers of up to 30% in some countries, which is not acceptable. It would increase unemployment in the EU rural areas and risk deepening the current economic crisis. Without the CAP, there would be 27 separate agriculture policies in the 27 member states which would cost far more than the CAP does. Agricultural spending must be kept at current levels until 2020 to ensure that we have a viable sector to meet growing food demand and boost growth and employment in EU rural areas. A rapid decision is vital”.
Copa-Cogeca will hold a high level meeting in Brussels on 6 February with around 400 participants “to press for a strong CAP with a good budget behind it”. (LC/transl.fl)