Does farm size influence environmental outcomes?

A widely-accepted justification for subsidising agriculture is that we need to prevent the emergence of the industrialised, mono-cultural agriculture which is the inevitable result of an efficiency-based, cost-oriented farming model by protecting the diversified, environmentally-friendly small farmer in order to maintain the positive environmental benefits of European agriculture. This is part of the philosophy of agrarianism which underpins much discussion of agricultural policy.

Let us leave aside for the moment the fact that the bulk of existing farm subsidies go to larger farmers rather than smaller ones, so that even if the thesis above is valid, current agricultural policy does not support it.… Read the rest

The (re-)distribution of CAP subsidies

Just days before the final ag Council meeting under the Czech EU presidency, member states’ positions on the Council Conclusions are still far apart. Things look a lot like last year when France attempted to show the way to long-term CAP reform, while some states resisted any move that could pre-empt the budget review/financial framework negotiations. CAP defenders are again trying to integrate far-reaching & far-fetched arguments on the benefits of the CAP that would point towards maintaining a big CAP budget and a strong first pillar. … Read the rest

Urban development – the ultimate challenge

Agriculture is special. It therefore deserves an outstanding dose of public subsidies. Or so we are told. But is there anything that is not special? The standard approach of economists (and others who happen to think clearly though writing about agriculture) is analytical: debunking erroneous claims for subsidies. The problem is that rational argument goes only that far. So the idea is to try something else: making up far-fetched cases in favor of subsidizing non-agricultural sectors. Their resemblance to some pro-CAP arguments would show the latter’s absurdity. … Read the rest

Health check redux and commodity market worries

There is an excellent piece of analysis from Roger Waite, editor of Agra Facts, on the final health check legal texts and the current situation in commodity markets. Falling prices are worrying farmers and piling the pressure on policy makers to turn the clock back on the CAP, with the ink barely dry on the health check.

Read Roger’s insights over at farmpolicy.com.… Read the rest

The great targeting debate

Czech agriculture minister Petr Gandalovic made an curious statement at the informal Agriculture Council meeting held earlier this week in the French Alps. Mr Gandalovic, who will assume the chairmanship of the Council under the Czech EU Presidency in the first half of 2009, told his colleagues:

“The more specific you make the policy, the more room you give to bureaucrats who make the decisions. Non-targeted payments give more power to farmers.”

In case it’s not clear, Mr Gandalovic was making the case against targeted payments. In doing so, perhaps inadvertently, he touched on a question that goes to the very heart of the debate about the future of the CAP: the extent to which the CAP’s 54 billion euros of annual public expenditure should be targeted on clearly defined objectives and measurable outcomes.… Read the rest

+++New WTO modalities paper is published+++

Full details at the WTO’s website. WTO Director General Pascal Lamy said:

“These revised texts set the stage for a decisive moment in the Doha round. Ministers and other senior officials will soon arrive for intensive negotiations the week of 21 July. They need negotiating documents which are clear and precise as they consider the complex issues of agriculture and industrial goods trade. These texts go a very long way in that direction. These negotiations have been long and tough but the prize awaiting us should we reach agreement is worth the effort. A deal to open trade in agriculture and goods means more growth, better prospects for development and a more stable and predictable trading system.

Read the rest

Mapping the CAP 1: Google maps v farmsubsidy.org

Over at farmsubsidy.org you can see the first fruits of a mapping project which aims to place every EU farm subsidy payment on a fully interactive web-based map, powered by the excellent Google Maps. The first country to get the mapping treatment is Sweden, chosen because its government has been by far the most transparent in terms of farm subsidy payments. The map displays some € 7 billion in CAP expenditure in 2 million payments to 114,700 recipients since 2000. We think the map-based interface is a fascinating new platform for bringing the CAP closer to the citizens that pay for it.… Read the rest

“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.… Read the rest

"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.… Read the rest