Lecture Common Agriculture Policy
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Transcript of Lecture Common Agriculture Policy
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The Common Agricultural Policy (CAP)
12 May 2014Jeroen Candel, Wageningen University
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A small quiz (1)
How much does the EU spend on the CAP?
A) 20% of its budget (27,5 billion euro per year)
B) 40% of its budget (55 billion euro per year)
C) 60% of its budget (82,5 billion euro per year)
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A small quiz (2)
Who’s the EU commissioner for agriculture and rural development?
A) Dacian Ciolos
B) Mariann Fischer Boel
C) José Graziano da Silva
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A small quiz (3)
Which country gets the largest share out of the CAP budget?
A) France
B) Germany
C) Poland
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How it all started• Treaty of Rome (1957)• Wish of France to include
agricultural products in common market
• CAP mechanisms in effect from 1962
• Objectives: – Productivity & self-sufficiency– Standard of living farmers &
fair prices consumers– Stabilise agricultural markets
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Mansholt plan
• Structural reform EU agriculture
• Noted limits price support• Reduce land under
cultivation, scale increase• But: resistance too strong
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70s and 80s: crisis
CAP big success, too big..:
Costs
High prices for consumers
Environment
Overproduction: milk lakes and butter mountains
Pressure trade partners
1984: Milk quota, but insufficient: increasing pressure
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Reforms
1992 MacSharry Reform: direct income support
Agenda 2000: rural development (second pillar)
2003 Fischler Reform: decoupling, cross-compliance, mulftifunctionality
2008 Health Check: phasing out milk quotas
2013 Ciolos Reform
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How to explain CAP’s policy development?
Lynggaard & Nedergaard (2009):• Stability by looking at reform rounds: short-
term interests• Change by looking at periods in between:
changing societal concerns and values
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Societal concerns and values
• 60s-80s: food security, farmer incomes, disadvantaged areas
• 80s-90s: overproduction, environment, developing countries
• 2000s: food safety, environment, quality, diversity, food security
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Time for celebration: 50 years of CAP
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But also new challenges: food price crisis
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Increased public engagement
Societal & Political concerns:
1. Size of the total budget
2. Distribution of the budget
3. Requirements for farmers
4. External effects
First time that EP had
co-decision powers in
CAP reform
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What were the hot potatoes in the recent negotiations? It’s not food security
Size budget
Greening measures
Pillar I vs Pillar II
7500 amendments European Parliament
How to make rules that are both flexible and strict?
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Inter-institutional agreement September 2013
•Convergence payments between member states•Payments on basis hectares•Greening Payment (30%): permanent grassland, crop diversification, ecological focus areas, or equivalent measures•15% of budget pillar can be transferred•End sugar quota in 2015•Member states have a lot of discretionary powers in implementation
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