Post on 03-Jan-2016
CAP Reform:early observations from the negotiations
Martin NesbitDirector, EU and International Agriculture
Edinburgh stakeholder meeting25 January 2012
1
2
Commission’s proposed new architecture of direct payments
Cro
ss c
om
pli
ance
•S
tre
am
lin
ed
– C
lim
ate
ch
an
ge
OR
Basic Payment Scheme
• New entitlements in 2014• Definition of agricultural activity• Definition of active farmer
• National or regional flat rate per eligible hectare
• Regions and criteria to be chosen by MS
‘Green’ Payment• Crop diversification• Permanent grassland• Ecological focus area
• 30% of the DP envelope
Young Farmer Scheme• Up to 2% of DP envelope• < 40 years
• For 5 years• Commencing activity
Small Farmer Scheme
• Simplification of claims and controls
• Lump sum payment to be determined by MS under conditions
• Entrance in 2014
• Up to 10% of the DP envelope
Coupled support
• Wide range of sectors• Up to 5% or 10% of DP
envelope, to be decided by MS
Natural constraint support
• For areas with natural constraints
• Up to 5% of the DP envelope
Initial UK response to proposals
Significant disappointment...
• “Greening” component does not deliver significant environmental benefits
• But it does cause significant burdens on business and government
• Limited focus on competitiveness; risks of reversal in the trend of reform
• “Small farm good, big farm bad” approach e.g. capping, compulsory small farmer scheme:
risk significant complexity, and send counter-productive signals
... but capable of improvement.
Some of the rhetoric is along the right lines:
• Challenges of global food security
• Need for improved environmental performance and sustainability
• Commitment to simplification
We need to work on the legislation to help it match the rhetoric.
3
What will emerge from the negotiations?
• Jim Paice : “saying we [farm ministers] don't like these proposals doesn't demonstrate there
is any particular communion of thought about what we want instead.”
• But:
• Significant level of interest in Council in Member State flexibility
• All ministers clear that proposals fail to deliver on simplification
• Difficult to see how “greening” can be removed once it’s on the table.
• What member states can and can’t live with on greening, and on redistribution of funding
will depend on overall Budget decisions
• European Parliament role will be key; but unpredictable.
• View on capping and active farmers may not be conditioned by deliverability
• Likely to be split down the middle on “greening”
• Initial signs of interest in whether 30% is the right level of greening payment
• Will want to know what happens on overall budget levels before deciding.
4
European Parliament
• Rapporteurs identified:
• Dantin (France, PPE) – Single CMO regulation
• Capoulas Santos (Portugal, S&D) – direct payments and rural development
• La Via (Italy, PPE) – Finance and controls.
• Draft reports likely to be published before the summer, allowing amendments to be tabled up to
September.
• Committee debate and vote before the end of the year. 2 options for Plenary adoption:
• (i) wait until European Council resolves the Budget
• (ii) adopt a report now, but make it clear that Parliament bases it on CAP budget proposed
by Commission.
• Opportunity for UK stakeholders: ensure UK and other MEPs understand the importance of
key issues, and any areas where the legislation needs to better accommodate local realities.
5
Council
• Works in parallel to the EP, but waits for EP opinion before adopting its Common Position.
• Danish Presidency (Jan-June 2012):
• Detailed consideration in official level working groups
• Aim to agree compromise text on technical issues
• Identify key political issues and ideas for compromise
• End product: report identifying the big political questions and describing the position of Member
States and possible indicating avenues for further negotiation.
• Cypriot Presidency (July – December 2012):
• Plans not yet clear – but don’t underestimate their capacity
• Likely to be more willing than most to be guided by the Commission
• May take forward some key issues pending budget agreement – e.g. Greening
• Irish presidency (Jan – June 2013):
• Where the Council deal is likely to be done
• Will they be able to reach agreement with the EP?
Negotiation Timetable and Process
CAP Reform Negotiations Timeline European Council Day 1 Ag Council Day 1 Key national election Possible CAP deal
2015 2016Hungary Latvia Netherlands
Jun Jul Aug Sept Oct Nov Dec Lux Slovakia
EU
EP
UK
Q3 Q4Q1 Q2
MF
FC
AP
Q1 Q2 Q3 Q4
Co
mm
issi
on
Co
un
cil
Greece Italy2014
Poland2011
Denmark Cyprus2012
Ireland
Def
raP
arlia
men
t
Lithuania2013
Q1 Q2 Q3 Q4
SCA Negotiations
Transitional Measures
Continuation
Technical Read through. Initial compromises.ID Key issues
Establish key policy positions beforeinterservice consultation
Proposals -inter-
service consultation ~ 1-14 Sept
New
CA
P t
akes
eff
ect
New
Fin
anci
alP
ersp
ecti
ve
Prep for consultation
Dess report finalised (End June)
EU Scrutiny Committee
(13 June)
MFF Negotiations....LeaksProposalsreleased29 June
1
17 92
13
27 18 11 19 20 14
MFF
Agre
emen
t?
CAP Impact Assessment
Finalised
13
EAC to clear revised CAP position ahead of proposals
Defra consulation on legislative proposals
Scrutiny of CAP Regulatory Proposals(And any transitional measures package)
EFRA enquiry -Implementation?
Council Position?
Second Reading?
15
First Reading(no formal time limit)
Implementing rulesImplementing rules
agreed in delegated/ implementing acts
Prepare draft RDPERPA systems alignment etc
Strategic Framework readacross
4 CAP Regulation Proposals Released
12 Oct
CAP Agreement?
Fr De
De
React to proposals-consider key positions
1st position -key lobby lines
4x Regulation Working Groups
- initial read through
Council Position?
Conc
illiati
on?
Consider compromises/key political issues -Establish and clear fallback positions
Establish end-game priorities
Transitional Measures Package?
EAC clearance of CAP deal
Devolved Administration and UK stakeholder engagement
Defra consulation on implementing legislation
Pl
EAC meetings during negotiations to review and clear Budget positions
Proposals- College ~ 19 Sept - 12 Oct
Martin Nesbitmartin.nesbit@defra.gsi.gov.uk
http://www.defra.gov.uk/food-farm/farm-manage/cap-reform/
8