The think tank Momagri (Movement for world agricultural organisation) wrote to European Commission President Jean-Claude Juncker on Monday 3 October setting out its vision for reform of the common agricultural policy (CAP) “which addresses the challenges of agricultural price volatility and market instability”.
In its White Paper, published on 31 August, Momagri argued for “thorough and bold” reform of the CAP (see EUROPE 11614).
It has always believed that decoupled direct payments (i.e. not linked to production levels) are “ineffective and give a negative image of farmers. Today, the severe crisis that is impacting the agricultural community proves it”, says a press release, explaining why Momagri has chosen this course of action.
It proposes replacing part of direct payments with a flexible system of risk management that provides farmers with a minimum level of revenue in times of price collapses.
In his letter to Juncker, Momagri President Christian Pèes argues for a counter-cyclical redistribution system that would only be triggered in the event of sustained price falls. Thus, when market prices are above the floor threshold, the cost for the EU would be significantly reduced.
A system such as this would stabilise the three major markets (cereals, milk and oilseeds), and discussion would have to be opened on the sugar market, in Momagri’s view. It suggests, too, that, at this stage, second pillar (rural development) measures should be maintained. Lastly, this proposed reform would be in line with EU commitments towards the WTO, “making better use of de minimis clauses”, says Pèes. The goal is a new, more sustainable CAP that delivers more budgetary added value, Momagri states. (Original version in French by Lionel Changeur)