Brussels, 21/06/2013 (Agence Europe) - The EU institutions hope to reach agreement in principle in Brussels on Wednesday 26 June on reform of the common agricultural policy (CAP). Before that, the Agriculture Council will meet on Monday 24 and Tuesday 25 June in Luxembourg, where it will try to change its negotiating mandate (from March 2013) in order to able to reach agreement with the European Parliament, because co-decision was introduced for farm issues when the Lisbon Treaty came into force. The negotiations are expected to be tough particularly on internal convergence of aid (adjusting aid for farms within each member state), the way the aid is paid, the upper limits and gradual reductions in direct aid and measures for sugar and dairy farming.
These three-day talks will take place in two different cities and are expected to run as follows. From Sunday, meetings of the Irish Presidency, European Commission and each of the member states separately will take place in Luxembourg. In Luxembourg at 10.00am on Monday, the first debate will take place at the Agriculture Council on the documents on the negotiating table (direct payments, rural development, common organisation of the markets and the horizontal regulation). At around 2.00p.m. on Monday, the first three-way meeting with the European Parliament will take place (which will be attended by 19 MEPs in the end, although the EP had initially threatened not to send any MEPs to the meeting), then a second three-way meeting. At 10.00am on Tuesday, the Council will meet again, followed by three-way talks if necessary. The idea is that the Council should reach agreement on Tuesday evening on a revised negotiating mandate. On Wednesday morning (26 June), there will be a final three-way meeting in Brussels, followed by a meeting of the EP's agriculture committee which, it is hoped, will give the deal the go-ahead. If all goes to plan, champagne corks will be popping after a press conference scheduled for later afternoon to explain the details of the reformed CAP.
In terms of internal convergence, the challenge is to find EU rules that give member states enough flexibility. The Commission wants a minimum threshold of 75% of the average regional payment per hectare. The French and Italian ministers are calling for a direct payment convergence rate that takes account of flexibility at national level. France is expected to suggest that losses by farmers arising from this domestic convergence process should be restricted to no more than 30%.
One way of compensating for the changes brought about by internal convergence (through which money will be transferred from some farmers to others in the same country) is to dip into the option of paying coupled aid (which keeps a connection with production). The EP wants 15% of the national direct payment budget to be coupled aid in the future, but the Council has opted for 7% (for countries that do not use or make little use of such aid connection) and 12% (for counties using coupled aid). France and Italy are calling for a coupled aid rate of 13% with an additional 2% for vegetable protein.
France and Germany are happy with the measures on redistribution payments, whereby 30% of the aid package can be reserved for the first 30, 40 or 50 hectares. This will make it possible to transfer cash from big farms to smaller ones and is expected to have a bigger impact than the saving expected from the capping of aid. The European summit said that capping should be optional, but has not said anything about reductions in payments. The EP is very keen to win something in the way of aid being reduced from the level of €150,000 upwards.
On the greening of aid, the EP's rapporteur says basic agreement has been reached by the institutions on the granting of 30% of the direct aid package in accordance with the following criteria: diversification of crops, permanent pasture land and ecological focus areas. Talks are continuing on the percentage of surface area to be kept as an area of ecological interest (3%, 5% or 7% according to the EP, 5% or 7% according to the Council) and exemptions (from 10 hectares or 15 hectares). The institutions agree on the question of equivalence and certification.
Double financing is a sensitive issue for the Council, although the European Parliament and Commission both firmly oppose it. The Irish Presidency is considering two compromise options (see EUROPE 10870).
Luis Capoulas Santos, rapporteur on direct payments, says that progress has been made in the three-way meetings on active farmers (a negative list of excluded activities, such as airports and golf courses), aid for young farmers (the EP and Commission are calling for this scheme to be compulsory) and aid for small farms (which the EP and Council say should be optional).
In terms of monitoring sugar plantations and vineyards, we are moving steadily towards an agreement acceptable to all, explained Michel Dantin (EPP, France), rapporteur on the common organisation of agricultural markets. France and Italy want the management system for vineyard plantation rights to be retained in place from 2019 to 2030 and for sugar quotas to remain in place until 2018 (with contracts for sugar refineries increased to 6 months). On rural development, there remains the problem of defining areas subject to natural constraints. (LC/transl.fl)