Brussels, 26/02/2009 (Agence Europe) - On Monday 23 February, France became the first EU country to explain in detail how it intended to use the health check tool box from the common agricultural policy (CAP) in an effort to redirect part of direct aid to farmers. France is not the first country in the EU to opt for a redistribution of aid. A minority of EU member states chose to implement the 2003 CAP reform on the direct aid regionalisation model. Community regulation obliges EU countries to notify CAP health check implementation measures by August at the latest. EU agriculture ministers reached a compromise on the CAP health check on 20 November 2008.
France will redirect almost €1.4bn in 2010 (€265 million for consolidating the economy and jobs in the regions, €980 million for setting up new support for grass reared animals and cattle fodder, €129 million for supporting sustainable development and €140 million for climate or health risk cover instruments), 18% of the direct aid received by French farmers. €640 million will be taken from aid to major crops.
There are three instruments used by the French government.
Modulation. This involves the transfer of funding from the first pillar (direct aid and market spending) to the second pillar (rural development). This modulation is progressive: 2% in 2009 and 1% in 2010, 2011 and 2012. It will be 5% by 2013. It applies to all aid and has a €5000 payment threshold. The transfer will represent overall, over four years, €945 million for diverse measures (including €584 million for the agro-environmental grassland incentive).
Article 68. This article (in Regulation 73/2009 for direct support systems for farmers) allows for a deduction (France will go up to 5%) from aid across the board. France intends to use this article for: 1) paying targeted aid (€135 million for ovine and caprine sectors, €45 million for mountain milk production, €8 million for durum wheat production in traditional zones and €4.6 million for milk-fed veal; 2) granting of subsidies to help sustainable production systems (€40 million for plant protein production for organic farming; 3) implementing climate and health risk cover instruments (€100 million for full harvest cover, €40 million for setting up health fund).
Article 63. This article focus on integrating coupled aid in the single payment system. Under this article, there will be levies of €760 million, which allows for the multiplication by four of resources going to the grassland incentive. (L.C./transl.rh)