A RISE (Rural Investment Support for Europe) Foundation report published on Monday 27 March argues for direct payments to be reduced and for the money saved to be used to provide targeted assistance for farmers in order better to address environmental challenges.
The analysis by the RISE Foundation, whose board is chaired by former European environment commissioner Janez Potocnik shows that the current CAP (common agricultural policy) “does not make best use of the considerable resources deployed”.
Limited effect of greening of aid. CAP pillar 1 direct payments account for over 70% of CAP funds but, the report argues, they are “ineffective, inefficient and inequitable” And the expected environmental benefits from the greening payment in pillar 1 are likely to be “very limited”. The foundation suggests that these direct payments should be systematically reduced and resources switched to provide targeted assistance, “including transitional adjustment assistance” to help farmers adapt and rise to the specific challenges of improving productivity, resource efficiency and risk management and to pay farmers to provide specific environmental and other public goods.
Land management and risk management. The two principal aspects of the CAP requiring the most attention are, the report says, land management and risk management. The greatest worry with regard to land management, according to the report, is that current environmental standards are not being met. The report therefore proposes a redesigned, more integrated tiered structure of supports with clearer targets on the environmental outcomes sought. The core issue as far as risk management is concerned is that “the sheer scale of direct payment inhibits farmers from better mitigating the risks they face”. The report outlines the full range of instruments that are most appropriate for managing risk at the farm level, market level and nationally at times of catastrophic risk.
Lastly, the RISE Foundation believes that rural development policy is less in need of over-haul and it welcomes the Cork 2 declaration on rural development that was adopted six months ago (see EUROPE 11717). Previously the foundation was chaired by ardent supporter of the second pillar of the CAP (rural development) and former agriculture commissioner Franz Fischler. (Original version in French by Lionel Changeur)