At a meeting of the Special Committee on Agriculture (SCA) on Monday 19 May, the representatives of the Member States adopted the negotiating position of the Council of the European Union on the revision of the regulation on the Common Market Organisation (CMO), with the aim of strengthening the position of farmers within the agri-food chain (see EUROPE 13635/21).
In a press release, the Polish Presidency of the Council of the EU reports improvements to the European Commission’s initial proposal.
On the issue of written contracts signed between a farmer and purchasers for the supply of agricultural products, the Council clarifies the obligations of the parties and introduces new exemptions to allow Member States to adjust contracts to suit specific national agricultural circumstances.
In particular, Member States will be able to decide that a written contract is not necessary if the first purchaser of agricultural products is a micro-enterprise or small business, if delivery of the goods and payment are made at the same time, or if the value of the deliveries does not exceed €20,000, points out the Polish Presidency.
According to the Member States’ position, farmers will be able to activate the revision clause of a long-term contract after one year, whereas the Commission had initially proposed a period of six months. According to the Polish authorities, extending the deadline will promote predictability and stability within the food supply chain.
In the event of a dispute between a farmer and a buyer, Member States will be able to provide for the creation of compulsory mediation mechanisms, whereas the Commission had proposed making such mechanisms compulsory throughout the EU. For the Polish Presidency, this provision aims to avoid increasing the administrative burden and to respect specific national characteristics.
The legislative text also includes provisions designed to strengthen agricultural producer organisations. Member States will be able to provide more funding for certain organisations through the CAP’s sectoral interventions, and will be able to encourage young farmers to join these organisations.
Finally, the Council is recommending a period of two years for the application of the future rules, six months longer than the period proposed by the Commission.
To see the legislative text approved by the Member States, go to https://aeur.eu/f/gwh (Original version in French by Mathieu Bion)