"Notre Europe" brainstorming

The think tank “Notre Europe” just released a document on the future of the CAP. Notre Europe’s point of view is that because the health check (HC) is likely to lead mostly to short term adjustments, the “real” debate on the CAP is likely to take place before the next financial perspectives. The outcome could be very contingent to the situation that will prevail in 2013 (e.g. market situations). Notre Europe launched a reflexion that intends to look to more structural changes, with a longer term horizon than the HC.
All the members of the (large) task force did not share a common position on this issue and instead of producing a UN-type consensual document, two of the members, L.P.

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“Notre Europe” brainstorming

The think tank “Notre Europe” just released a document on the future of the CAP. Notre Europe’s point of view is that because the health check (HC) is likely to lead mostly to short term adjustments, the “real” debate on the CAP is likely to take place before the next financial perspectives. The outcome could be very contingent to the situation that will prevail in 2013 (e.g. market situations). Notre Europe launched a reflexion that intends to look to more structural changes, with a longer term horizon than the HC.

All the members of the (large) task force did not share a common position on this issue and instead of producing a UN-type consensual document, two of the members, L.P.

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Health check reactions…

With the Commission’s proposals widely leaked before publication earlier today, there was plenty of time for those who take an interest in EU farming policy to precook their reactions. In this post, which I will endeavor to update over the next few days, I’ll try to bring together a summary of the most interesting responses.

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Irish farmers: biting the hand that feeds them?

The Republic of Ireland will hold a referendum on ratification of the EU’s Lisbon Treaty on 12 June 2008. The Irish Farmers Association is urging a No vote, on the grounds that the EU’s push towards more open world markets in agriculture could expose them to competition from overseas, notably from Latin America.

Ireland gets way more than it’s fair share of EU farm handouts. And this fact will not be lost to other member states if Ireland votes to derail the Lisbon Treaty. The EU is currently engaged in a fundamental, ‘once in generation’ review of its budget. The main target for cuts appears to be the agriculture budget, which accounts for around 45% of all EU spending.

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What is happening to EU land prices?

The evolution of agricultural land prices and rents can be a good indicator of the effect of agricultural policy, because of the assumption that a significant proportion of the transfers to farmers as a result of such policy are capitalised into land values. Thus, changes in agricultural policy may have implications for land values, and the prospect of capital losses due to a fall in land values can be one source of opposition to such changes.

The issue is relevant in the context of the Commission’s proposals to introduce a ‘regret clause’ with respect to the implementation of the Single Payment Scheme as part of the Health Check.

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Farm land price boom

The cost of agricultural holdings across the EU has risen to record levels. However, this is not entirely good news for farmers. It makes it even harder for those who do not inherit to enter the industry, while only farmers wanting to retire can cash in. Tenant farmers face higher prices making life more difficult for them.

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