Substantial Facts and Figures of Austrian Agriculture (1)

Federal Association of Farm and Forest Owners in Austria

Implementation ofImplementation ofCommon Agricultural PolicyCommon Agricultural Policy

in Austriain Austria

Vienna Twinning ConferenceVienna Twinning Conference77th th October 2004October 2004

Hans GrieshoferHans Grieshofer


Substantial Facts and Figures of Austrian Agriculture (1)Substantial Facts and Figures of Austrian Agriculture (1)

Land Use

in 1,000 hectares

2001 2002 2003

Arable land 1.380 1.379 1.380

Total grassland 1.917 1.917 1.917

Agricultural area 3.375 3.374 3.373

Wooded area 3.260 3.260 3.260

Other areas 753 753 753

Source: Statistics Austria 2004


Substantial Facts and Figures of Austrian Agriculture (2)Substantial Facts and Figures of Austrian Agriculture (2)

Agricultural Production

Areas in 1,000 ha, Yields in 100 kg/hectares

2001 2002 2003

Products Cultivated area

Yield per ha Cultivated area

Yield per ha Cultivated area

Yield per ha

Wheat 287,8 52,4 288,8 49,7 272,0 43,8

Rye 51,2 41,7 47,1 36,3 40,0 33,2

Barley 217,5 46,6 200,9 42,9 212,3 41,6

Oats 31,5 40,8 32,1 36,4 34,4 37,4

C. Maize 171,4 87,1 172,2 96,8 173,3 83,8

Potatoes 23,1 300,4 22,5 303,8 21,1 265,3

Sugar beet

44,7 620,4 44,5 684,5 43,2 575

Source: Statistics Austria 2004


CAP BackgroundsCAP Backgrounds

CAP Reform

WTO

Cancun 03, Genf 0

4

Agenda 2000

Berlin 1999

EU Enlargement

Copenhagen 2002Sustainability

Göteborg 2001


CAP Developments since 2002CAP Developments since 2002

Strategy Paper of European Commission (July 2002)Strategy Paper of European Commission (July 2002)

Mid-Term Review – Legislative Proposals (January 2003) Mid-Term Review – Legislative Proposals (January 2003)

Political Unification (26.6.2003) Political Unification (26.6.2003)

Appointment in the Council of Agricultural Department (29.9.2003) Appointment in the Council of Agricultural Department (29.9.2003)

Beginning of Implementation in Austria (1.1.2005) Beginning of Implementation in Austria (1.1.2005)


Main elements of the CAP ReformMain elements of the CAP Reform

Decoupling: Single Farm Payment scheme (SFP), independent from the production volume!

Cross-Compliance: Making direct payments within the framework of market organisations conditional on the compliance with standards in the field of Enviroment, Food Safty, Animal and Plant Health, Animal Welfare as well as the commitment to keep all agricultural areas of holding in a „good agricultural condition“

Modulation: Reduction of the Direct Payments from an amount exceeding € 5,000 onwards, in order to make additional financial resources avaiable for rural development

Arable crops: Various measures regarding durum wheat, protein plants, rye and the monthly increments

Milk: Prolongation of the milk quota until 2014/15


Implementation Time-TableImplementation Time-Table

Legal Background on European Level Legislation: Council Regulation (EC) No 1782/2003 Implementing Regulations (3)

• Cross-Compliance and Modulation• Single Farm Payment• Direct Support Scheme

National Decrees Single Farm Payment 28.8.2004 Cross-Compliance October 2004

Implementation Steps March 2004: Identification of the persons currently eligible in the case of a change

of the farmer – already carried out Aug./Sept. 2004: Communication of the presumable data on he SFP to the farmers Sept./Oct. 2004: Identification procedure and possibility to apply

• Cases of hardship• Special Cases• Anticipated transfer of payment entitlements in case of changes of the area

March 2005: Communication of the final data April to 15. May: Application für the SFP December 2005: Payment of the SFP


Austrian Implementation (1)Austrian Implementation (1)

Basic Formula for the Payment Entitlement

Reference Amount = Market Payment Orders (2000-2002) / 3 Years

Reference Area = Culture Plants Area and Forage Area / 3 Years

Payment Entitlement (in €/he) = Reference Amount / Reference Area

Model of the Single Farm PaymentModel of the Single Farm Payment



Area Payments

Culture plants

Peas and beans

Durum Wheat

Seeds

40% Starch Potatoes

Dried Food

Hop

Decoupled PaymentDecoupled Payment



Animal Premium

Special Premium for Male Cattle

Premium for increase of Male-Cattle, Sucker-Cows and Milk-Cows in mountaious region

Ewes and Goats

60 % Slaughter Premium for Adult Cattle

Decoupled PaymentDecoupled Payment



Activation: Utilizing a Payment Entitlement (PE) is possible in a hectare of eligible area

Transfer: Transfer within a Memberstate; Activation of least 80% in the first year; in cases sale without land, 50% of their value pass to National Reserve

Rotation of PE: Minimize the devaluation of PE

National Reserve: 3% of the maximum rate of the hole Austrian Farm Premium (2005; € 18 Mio.) plus PE not activated as well as unused PE; PE for Special Cases

Use and Activation/Operation of SFP Use and Activation/Operation of SFP


Many Thanks for your Attention!

Hans Grieshofer

Substantial Facts and Figures of Austrian Agriculture (1)

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