On Wednesday 31 January, the European Commission announced that it was proposing to allow farmers in the European Union to benefit, for the year 2024, from derogations to the rules of the Common Agricultural Policy (CAP) which oblige them to keep certain non-productive areas fallow (see other news on imports from Ukraine).
Such derogations were unconditionally granted in 2023 because of the war in Ukraine (see EUROPE 13339/2).
For 2024, according to the proposal, farmers will be able to benefit from CAP aid even if they do not have 4% set-aside, provided that they grow 7% intermediate or nitrogen-fixing crops (lentils, peas, etc.) without using plant protection products.
The proposal “provides an initial concrete political response to farmers’ income concerns”, says the Commission, pointing out that several Member States have made this request on several occasions within the Agriculture Council.
To receive the CAP aid to which they are entitled, farmers must comply with nine Good Agricultural and Environmental Conditions (GAEC).
Among other things, GAEC 8 requires a minimum proportion of arable land to be devoted to non-productive areas or features (set-aside land, hedges, trees). Farms with less than ten hectares of arable land are generally exempt from this obligation.
The Commission is giving all EU farmers the opportunity to be exempted from this obligation and to continue to receive their basic CAP direct payment.
Instead of maintaining set-aside or unproductive land on 4% of their arable land, EU farmers who grow nitrogen-fixing plants (such as lentils, peas or beans) and/or catch crops on 7% of their arable land will be considered as meeting this requirement.
Catch crops are plants that grow between two main crops. These crops can be used as animal fodder or green manure. The use of nitrogen-fixing crops and catch crops offers a range of environmental benefits for soil health.
The Commission’s proposal is “carefully calibrated to ensure a fair balance between, on the one hand, providing appropriate support to farmers facing numerous crises and, on the other hand, protecting biodiversity and soil quality”, says the Commission.
The measure will be voted on in the next few days by the Member States meeting in committee. The Commission will then proceed with its formal adoption. The regulation will apply retroactively from 1 January 2024. Member States wishing to apply the derogation at national level will have to notify the Commission within 15 days so that farmers can be informed as soon as possible.
Speaking to the press, Commission Vice-President Maroš Šefčovič pointed out that European farmers “have been under increasing pressure from all sides” (climate change, soaring energy prices). This “persistent source of pain increases production costs while reducing income”. The value of cereal production in the EU fell by almost 30% by 2023, noted Mr Šefčovič. The Commission is proposing to “give a helping hand” by allowing EU farmers to derogate from the rules on set-aside land. This is a partial derogation, limited to this year, insisted the vice-president. The Commission hopes to help farmers “remain economically viable in this period of great uncertainty”.
Answering questions from the press, Maroš Šefčovič pointed out that the value of the EU cereals market has fallen by 20 billion in 2023 compared to 2022 (to €60 billion).
The President of the Commission, Ursula von der Leyen, noted the size of the CAP budget: €386.7 billion over the period 2021-2027, but this budget is falling due in particular to inflation. (Original version in French by Lionel Changeur)