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The Common Agricultural Policy 2014-2020: proposals from the European Commission


Title: How the European process works? Author: Louden Last modified by: u204089 Created Date: 2/3/2011 9:14:38 AM Document presentation format: On-screen Show – PowerPoint PPT presentation

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Title: The Common Agricultural Policy 2014-2020: proposals from the European Commission

The Common Agricultural Policy 2014-2020
proposals from the European Commission
  • David Barnes/Drew Sloan
  • Dec 2011 - Jan 2012

Purpose of these meetings
  • To inform you about the European proposals for
    the future CAP
  • So that you can begin to think about preparing
    for it
  • To set out Scottish Governments views at this
  • To hear your informal views and comments
  • And to enable you to give us well-informed formal
    feedback via our consultation exercises.

  • Some things still need clarification from the
  • Everything in the proposals is subject to change
    in the negotiations.
  • The consultation exercise is designed to inform
    SGs final position, so what we set out tonight
    is just an interim position.
  • How the new CAP will be implemented in Scotland
    will be the subject of a separate consultation
    process nearer the time.

What tonight will cover
  • Introduction/background
  • Procedure
  • Budget
  • Timetable
  • The content of the European proposals
  • Pillar 1
  • Pillar 2
  • Issues common to both pillars
  • Next steps
  • QA

  • The EU is negotiating its budget and policies for
  • Three EU institutions are involved
  • European Commission
  • Council of Ministers
  • European Parliament
  • Only the European Commission can table a
    proposal focus tonight is on the Commissions
    proposals for the CAP.
  • Council of Ministers and European Parliament then
    negotiate and decide.

CAP Budget and CAP rules will be decided
  • CAP budget will be considered alongside the rest
    of EU budget, by Finance Ministers and Heads of
  • CAP rules will be negotiated and decided by
    Agriculture Ministers and the European Parliament.

CAP budget
  • Commission proposal is roughly a flat cash
    budget for CAP 2014-2020, which means a decline
    in value in real terms (no uplift for inflation).
  • Commission proposes redistribution of the budget,
    to boost Pillar 1 payments in new Member States
    and to make Pillar 2 fairer.

Pillar 1 Direct Payments budget
  • Commission proposal for convergence to help new
    Member States those below 90 of EU average
    /ha get an uplift.
  • Proposed UK Direct Payments ceiling is slightly
  • Within-UK allocations not yet known.
  • Scotlands average /ha is as low as some new
    Member States.

Pillar 2 Rural Development budget
  • Commission proposes to use more objective
    criteria than in the past to allocate Member
    State shares.
  • UK allocation not yet known.
  • Criteria should lead to bigger percentage shares
    of the EU RD budget for UK and Scotland.
  • Total RD budget in Scotland 2014-2020 will also
    depend on how big the EU RD budget is, and how
    much national co-financing money is available.

CAP rules
  • Whats happened so far
  • 2009-2010 gathering ideas - Commission
    consultation exercise, Council discussions, Lyon
  • Pack Inquiry into future farm support.
  • Nov 2010 Commission options paper. Council
    discussions, Dess report.
  • Oct 2011 Commission issues formal proposals
    designed to meet its objectives.

Two Pillars, four regulations
  • Pillar 1
  • Direct Payments
  • Market measures (Single CMO)
  • Pillar 2
  • Rural Development (RDR)

Financing and monitoring (Horizontal
EU implementing rules (Delegated Acts)
Commissions ideal timetable
  • CAP proposals issue 12 October 2011.
  • EU and CAP budgets decided summer 2012.
  • CAP regulations finalised end 2012 or early 2013.
  • EU-level and Member State-level implementing
    rules and legislation adopted during 2013.
  • New regime 1 Jan 2014.

If the timetable slips
  • Pillar 1 Direct Payments and Market Measures
    status quo could essentially continue until the
    new system begins, Eg on 1 Jan 2015.
  • Pillar 2 Rural Development Programmes risk of a
    gap between current programmes and new ones
    unless bridging arrangements are agreed.

Content of the EU proposals
  • Pillar 1 Direct Payments
  • Next slides from the Commissions own

(No Transcript)
Who would have entitlements under the proposals ?
  • All current entitlements would expire.
  • Entitlements under the new system would be
    allocated to
  • farmers who are actively farming in 2014 and
    submit a claim, and who activated at least one
    SFP entitlement in 2011.
  • and people eligible for the National Reserve.

National Reserve
  • Funded by one-off deduction of up to 3 of
    Scotlands total Direct Payments.
  • Priority given to farmers under 40 who started
    farming in the last 5 years. If necessary to
    meet this demand, the 3 can be increased.

Who is an active farmer ?
  • Direct Payments must be at least 5 of
    non-agricultural income (unless Direct Payments
  • Must grow crops/keep livestock or keep the land
    in condition suitable for grazing or cultivation.
  • Member States/regions can impose minimum activity
    on land which remains in good condition even
    without management.
  • Minimum claim size and hectarage.

1. Basic Payment
  • Whats left after the various deductions have
    been made.
  • Can be regionalised, on objective criteria.
  • In 2014, 40 of the Basic Payment ceiling is
    area-based. Remainder shared out according to
    historic SFP.
  • By 2019, must be 100 area-based and all
    entitlements within a region must be equal.
  • Transition profile fixed in advance, in 2013.

2. Greening
  • If gt3ha of cropping, minimum 3 crops each
    covering gt5 and lt70.
  • Permanent grassland (gt5yrs) must be maintained as
    declared in 2014.
  • Each holding must have Ecological Focus Area
    (buffer strips, landscape features, fallow etc)
    equal to 7 of arable and temporary grass area.
  • Organic farming qualifies automatically.

3. Young farmer top-up
  • Compulsory for Member States. 25 top-up per
    hectare, up to a limit on hectares.
  • Limit must be set between 25ha and average
    holding size in UK (54ha).
  • Under 40, and max. 5 years after establishment.
  • Up to 2 of Scotlands total Direct Payments.

4. Coupled support
  • Voluntary for Member States/regions.
  • Replaces Article 68 and pre-SFP schemes (SCPS,
    SAPS etc) which some member States are still
  • Limited to fixed no. animals and to payment rates
    necessary to maintain current production.
  • Up to 5 of total Direct Payments, except for
    Member States currently using gt5.

5. Area of Natural Constraint (ANC) top-up
  • ANC new designation for LFA
  • Top-up voluntary for Member States/regions.
  • Up to 5 of total Direct Payments.
  • Payable on all or part of ANC, according to
    objective criteria.
  • Must be deducted from Pillar 2 ANC support

Progressive reductions/capping
  • Payments reduced by
  • 20 from 150,000 to 200,000
  • 40 from 200,000 to 250,000
  • 70 from 250,000 to 300,000
  • 100 above 300,000
  • Salaries/employment costs are deducted.
  • Greening payments are exempt.
  • Proceeds used in Pillar 2 for innovation.

Small farmer scheme
  • Compulsory for Member States, optional for the
    farmer (one-off decision in 2014).
  • Up to 10 of total Direct Payments.
  • Fixed payment, between 500 and 1,000.
  • Replaces other payments inc. coupled payments.
  • Minimum no. hectares.
  • Exempt from greening and from cross-compliance

Pillar 1 Market measures
  • EU has moved from permanent intervention in the
    market to safety-net only.
  • Provision for emergency measures in the event of
    extreme market disruption.
  • Milk quotas already being phased out, sugar
    quotas proposed to be phased out.

Pillar 2 Rural Development current rules
  • 7-year programmes approved by Commission.
  • Co-financed by EU and domestic money.
  • Axis 1 farm business development (capital,
  • Axis 2 agri-environment (capital and annual),
    LFA, woodlands, animal welfare.
  • Axis 3 diversification and community projects.

Pillar 2 Rural Development proposals for
  • Evolution not revolution.
  • Common Strategic Framework joined-up approach
    between RD, EU Structural Funds and EU Fisheries
  • No Axes, no minimum percentages except 25 of EU
    funds on environment (inc. organic and LFA).
  • Possibility for sub-programmes within RDPs.

Less Favoured Areas
  • Re-titled Areas of Natural Constraint (ANC).
    Defined as
  • Mountain areas, or
  • Other areas meeting biophysical criteria (now
    defined by EU not Member State), or
  • Other areas facing specific constraints (eg
    islands), up to 10 of total area.
  • No special budget for each category, but
    different maximum rates.

Other areas biophysical criteria
  • Temperature, soil quality, slope, wetness or
  • Close to criteria used already to define LFA in
    Scotland, but less fine-grained applies to whole
    ward or parish if 66 of area meets the criteria.

ANC payments
  • Costs incurred or income foregone as a result of
    natural constraints, compared with
    non-constrained areas.
  • Take account of Pillar 1 ANC top-up.
  • Minimum 25/ha, maximum 250/ha (300/ha for
    Mountain), degressive above a threshold.
  • Transition arrangements for farmers excluded by
    the new criteria.

Common rules to Pillars 1 and 2
  • Cross-compliance
  • Rules to be followed by Member States
    (inspections, audit, financial reporting etc)
    not covered tonight.

  • As at present, two elements
  • Statutory Management Requirements (SMRs) and
  • Good Agricultural and Environmental Condition

Statutory Management Requirements (SMRs)
  • EU legislation on environment, animal and plant
    health, public health, animal welfare, which
    farmers should be complying with anyway.
  • Down from 18 to 13 (15 when Water Framework
    Directive and Sustainable Use of Pesticides
    Directive have been implemented). Some animal
    health SMRs removed.

Good Agricultural and Environmental Condition
  • 8 requirements (previously 8 compulsory 6
  • Retention of permanent pasture removed from GAEC
    moved to greening.
  • Minimum stocking density removed from GAEC moved
    to agricultural activity definition.
  • New GAEC Protection of wetland and carbon rich
    soils including a ban on first ploughing

Cross-compliance penalties
  • Take account of severity, extent and timescale.
    As at present
  • Penalty can be waived if minor non-compliance
    (but not if risk to public or animal health).
  • Negligence up to 5, or 15 if repeated.
  • Intentional 20 to 100.
  • Detailed rules set by Commission.

Next steps Scotland
  • Already consulted widely on CAP for Pack Inquiry,
    and we need rapid information on stakeholder
  • Questionnaire on SG website, with hard copy
    alternative (February to April).
  • Consultation is to inform the negotiating
    position. Separate exercises later to decide how
    to implement.

Commission proposal
Parliament 1st reading
Council 1st reading
Parliament 2nd reading
Council 2nd reading
Conciliation procedure
By end-2012 or early 2013 ??!
  • Then
  • EU implementing rules
  • Local implementation decisions.
  • Local implementation.

  • Questions