With the European Commission’s proposals on the reform of the Common Agricultural Policy (CAP) and the Multiannual Financial Framework (MFF) 2028-2034 due in a month’s time, the European agriculture ministers in Warsaw on Tuesday 17 June called for a strong CAP budget and the two-pillar structure (direct aid on the one hand, rural development on the other) to be maintained.
As far as the budget is concerned, “I think that the current budget should be maintained and that we should take inflation into account”, said the Polish minister, Czesław Siekierski, who chaired the informal meeting. He pointed out that the ministers had called for a “robust” budget to be maintained for the CAP after 2027, as well as the two pillars, with separate funds.
“Some people say that a third of the EU budget may be too much, but here we’re talking about 0.3% of our GDP invested in agriculture. But agriculture is not just about primary production: it’s also about machinery manufacturers, processors... It’s a much bigger part of the economy”, said Christophe Hansen, European Commissioner for Agriculture.
This is why, according to the Commissioner, “it is very important that we retain this set of tools, including the first and second pillars [of the CAP], because support for investment remains essential. We have a huge investment deficit. The European Investment Bank estimated it at 62 billion in 2022”.
Mr Hansen also defended maintaining the CAP’s financing capacity, given the considerable pressures on agriculture and food systems.
For Annie Genevard, the French Minister for Agriculture, the financial volume of the CAP post-2027 should “match the challenges facing European agriculture”. Like other ministers, she opposed the European Commission’s plan to merge CAP appropriations with other funds. “This is a damaging idea, because we would lose the common nature of the CAP by renationalising funding. The two-pillar organisation has proved its worth”, according to Ms Genevard. She pointed out that around twenty ministers within the EU Council are calling for this structure to be maintained post-2027 (see EUROPE 13648/1, 13647/7).
Peter Meedendorp, President of CEJA (European Council of Young Farmers), also stressed the need for the CAP to remain an autonomous European policy, “both in terms of its instruments and its governance”. He defended the idea of a budget strictly reserved for the CAP, with specific earmarking for young farmers.
Lennart Nilsson, President of COGECA (General Confederation of Agricultural Cooperatives in the EU), also called for a “strong” budget for the 2028-2034 CAP.
Mercosur. France urged the inclusion of “robust safeguard clauses” in the EU/Mercosur free trade agreement in order to protect European agricultural interests, reiterated the French minister. She pointed out that the draft agreement, as concluded in Montevideo, provides for the entry of very large agricultural quotas on the European market, likely to “destabilise” local industries.
Asked about a possible additional protocol including these clauses, Annie Genevard stressed the importance of assessing the impact of free trade agreements on agriculture. In particular, she cited the case of sugar, referring to the risk of factory closures and the significant volumes of imported sugar provided for in the EU/Mercosur agreement.
“Brazil has introduced safeguard clauses for its automotive industry. Why shouldn’t we have the same for our agricultural products?”, questioned the French minister.
Ms Genevard added that the French position was widely shared. On Monday16 June, on the French media outlet Franceinfo, the minister said that the blocking minority “is not out of the question” in the EU Council, citing opposition from Austria, Hungary and Poland, as well as reservations expressed by Ireland and Greece in particular (see EUROPE 13654/18).
Czesław Siekierski confirmed Poland’s opposition: “We have to protect European farmers, because they produce under certain conditions, which makes production more expensive”. He relayed the concerns of farmers on this subject and said that “their position should be taken into account”.
Christophe Hansen stressed that the existence of sensitive sectors should not be forgotten and that safeguards are necessary for these sectors. He spoke of the demands made by farmers, particularly with regard to reciprocity in international trade: “If we ban a plant protection product in the European Union for scientific reasons - because it is harmful to human health, to pollinators - then if it is dangerous in the EU, it is also dangerous outside the EU”, the Commissioner repeated.
Generational renewal. Mr Hansen said he would present the EU’s strategy on generational renewal after the summer. Among the key points, he cited access to land and finance. For him, there also needs to be a discussion over what an active farmer really is. “Many people or farms have the financial means to invest in farmland, but they are not the ones actually cultivating it”, he noted.
The Commissioner mentioned the existence of the European Land Observatory and a €3 billion loan programme with the European Investment Bank (EIB), specifically aimed at young farmers.
He also admitted that the agricultural reserve of €450 million per year for the 27 Member States is not sufficient to deal with disasters of all kinds. Farmers are insufficiently covered by insurance or reinsurance schemes. “Here too, we are working with the European Investment Bank to explore solutions”, he stressed.
In the package of simplified CAP rules presented on 14 May, the Commission is giving Member States the option of using up to 3% of their annual payments to compensate farmers for losses. Mr Hansen said he was a little concerned that the European Parliament was playing “political games”, and hoped that the package would be adopted by October so that it could be operational from the start of next year’s budget.
For Czesław Siekierski, the lack of young people wishing to pursue a career in agriculture is “a threat, both to Poland and to Europe”.
Peter Meedendorp called for “a toolbox accessible to all young farmers in the Member States, within the framework of the CAP, and even beyond”.
Sari Essayah, the Finnish minister, pointed out that only 12% of farmers in the EU are under 40 (15% in Finland).
Begoña García Bernal, Spain’s Secretary of State for Agriculture, presented her country’s approach: the adoption of “positive discrimination measures”, such as advantageous conditions for agricultural insurance. She mentioned as well Vega Innova, an innovation hub for start-ups in Spain’s agri-food sector.
Anne-Catherine Dalcq, the Walloon Minister for Agriculture, also said that the “nature credits” envisaged by the Commission risked creating an “explosive situation” in terms of access to land. (Original version in French by Lionel Changeur)