Luxembourg, 25/06/2013 (Agence Europe) - On Monday 24 and Tuesday 25 June, in Luxembourg, the EU institutions moved forward towards a compromise on reform of the common agricultural policy (CAP). A pre-agreement was reached after lengthy trialogues on Monday, regarding the internal convergence of direct aid, aid greening, the level of coupled aid, and the young farmers' package, as well as small farms and active farmers. The most controversial issues of the regulation on the common market organisation (CMO) are expected to be settled on Wednesday 26 June during the final trialogue. These relate to milk, sugar and the EP and Council's powers (reference price and intervention), as well as the horizontal regulation (for which there are sanctions in the event of failure to comply with greening measures). Finally, on the CAP reform issues that are linked to the multiannual financial framework (MFF) 2014-2020 (capping, degressivity of aid, transfers between pillars), the Presidency of the Council of Ministers planned to defer this till later pending a Council-European Parliament (EP) agreement on the MFF. However, the EP called for guarantees on these subjects.
The compromises that shaped up during the trialogues on reform of CAP were submitted to the European agriculture ministers during the afternoon of Tuesday 25 June, in Luxembourg. The Irish Presidency of the EU Council hoped to gain the Council's support by the end of the afternoon on a revised mandate in order to negotiate the last points with the EP during the final trialogue on Wednesday.
Internal convergence. This should aim to ensure that, by 2019, every farmer receives a direct payment at least equal to 60% of the national or regional average. Inversely, better-off farmers should not lose more than 30% of their payment. Convergence would be facilitated by the payment of a “redistributive” payment (premium for the first hectares) for the first 30 hectares or for the average surface area of the country's farms, if this is higher (which could reach at least 50 ha in France, for example).
Young farmers. Direct aid in favour of young farmers (rise of 25% of direct aid over five years) would be compulsory (a Council concession towards the EP and Commission). It would be necessary to reserve for this measure up to 2% of the national direct payment envelope.
Small farms. The simplified regime for small farmers (that receive below €1,250) would be optional. The maximum envelope intended for this support must not exceed 10% of total direct payments.
Active farmers. The trend is towards a short, albeit mandatory, negative list of activities considered as not being agricultural in nature (airports, rail services, land used for sports or recreational activities). Each country will have the possibility to complement the list.
Greening. This would be mandatory (30% of the total direct aid) on all eligible hectares of land. It would apply to farms of over 10 hectares. The percentage of surface area of ecological interest (SEI) is proposed at 5% as of 2015 and then 7% in 2017 on the basis of a Commission proposal. The development of the matrix defining the equivalence between features of the land (trees, hedges, etc.) and the SEI would be up to the European Commission (delegated acts). The SEI would only apply to arable land (not to vineyards, underwater crops or fruit trees).
On the issue of dual financing, the Commission suggested drawing up a list of measures that could be funded twice (as agri-environmental measures and also greening). These measures would no longer be funded by rural development but by 30% of the green payment.
Coupled aid. Coupled aid could make up 8% of the envelope of member states that do not or no longer practice this method of support and 13% for those that currently apply it, plus 2% for protein crops in both cases.
Wine and vine. The period of application of the new system of plantation authorisations would be from 2016 to 2030 and the maximum increase in surface area would be 1% per year.
Rural development. Thirty per cent of funding must be devoted to measures for protection of the environment (water, soil, biodiversity, etc.) and the fight against climate change. The 30% includes aid for zones that are naturally disadvantaged.
Later on. MEPs warned that they would not give their final endorsement to reform if none of the MFF elements affecting the CAP was reviewed: transfers between pillars, aid capping and modalities for external convergence. In order to reach a compromise, the Irish Presidency suggested setting in place degressivity of aid (modulation of support) - without mandatory capping - of 14% from €150,000 per farm (and more beyond €300,000). MEPs considered the offer politically inappropriate. The European Council could evoke the MFF dossier on Thursday after the agreement negotiated in trialogue was refused (see other article). (LC/transl.jl)