The European Parliament’s agriculture committee voted by 34 to 10, with 1 abstention, on Wednesday 3 May to adopt its opinion on the omnibus regulation amending Common Agricultural Policy (CAP) provisions (see EUROPE 11779).
With this opinion, the agriculture committee submits its requests to the Parliamentary budgets committee, which is the lead committee on these matters: strengthening of the role and weight of producer organisations, improving the effectiveness of risk management tools (so as to be able to cover up to 70% of losses in the event of more than 20% of production being destroyed), introduction of a voluntary reduction of production scheme in cases of significant market disruption and quicker triggering of extraordinary support measures in the event of crises.
The MEPs on the committee have thus brought big changes to the Commission’s initial proposal and have gone further than the compromise agreed in Council (see EUROPE 11765).
Rapporteur Albert Dess (EPP, Germany) hailed the level of cooperation among the various political groups. He highlighted the issue of permanent grasslands (following a ruling by the Court of Justice of the EU). The second pillar (rural development) has been extended until 2024, Dess stated. New varieties of plant have been added to the list of varieties eligible for greening of direct aid measures. The Commission was asked to present a proposal, by the middle of next year at the latest, on strengthening the position of farmers in the food supply chain, Dess said.
The other rapporteur, Paolo De Castro (S&D, Italy), stressed that the amendments would: - simplify provisions on the greening of aid; - make it easier to trigger risk management tools; - maintain market measures as a safety net; - bring in tools that will allow farmers collectively to negotiate the marketing of products.
With the adoption of a raft of amendments, the agriculture committee voted to: - reduce the trigger thresholds (from 30% to 20% of losses for farmers) for all risk management instruments; - extend derogations to competition rules to all agricultural sectors; - strengthen the role of producer organisations in negotiating contracts; - adopt measures to tackle unfair business practices (the Commission is called on to present a legislative framework in 2018); - extend exceptional measures to all sectors in the event of crises; - introduce provisions to ensure a more even distribution of the added value in the food chain.
MEP Eric Andrieu (S&D, France) welcomed the amendments which: - give member states greater flexibility in defining eligibility criteria for granting compensatory allowances for permanent natural handicaps (CANH); - ensure that permanent grasslands in the Mediterranean areas find it easier to qualify for CAP aid. He also welcomed the adoption of two amendments relating to the CMO (common organisation of the market) regulation which will: - allow enrichment of sweet wines over 15% alcohol by volume by using subtractive methods; - ensure better monitoring of planted areas in the Cognac region.
Michel Dantin (EPP, France) laid emphasis on provisions introduced which create “a right for farmers to a written contract and allow for negotiation among producers, industry and retailers of sharing of added value clauses”.
Trialogues to begin in September. Trialogue discussions among the institutions on this issue could begin in September. The Parliament budgets committee, the lead committee, is expected to adopt its report on the omnibus regulation on 30 May and the plenary session vote could take place in June or July. Changes brought in as a result of the omnibus regulation are due to come into effect at the start of 2018, assuming that there are no hold-ups in the negotiations. (Original version in French by Lionel Changeur)