Five leading European farming and environmental NGOs, who between them boast several million members, have jointly published a blueprint for a new Common Agricultural Policy. In an unusual and very modern step, they have published a draft proposal and opened it for consultation. They will produce a final version in 2010. The proposal, which runs to 28 pages, is for a radical reorientation of the CAP away from a productivist and income support model towards a ‘public money for public goods’ ethos. [...]

Earlier in the month I wrote that Agriculture Commissioner Mariann Fischer Boel was holding the line against protesting dairy farmers and a clutch of national agriculture ministers looking for more aid for their troubled farmers. It looks as though I spoke too soon. At this month’s farm council, Commissioner Fischer Boel found a further 280 million euro from the 2010 budget to give to dairy farmers, in addition to measures announced last month. [...]

This afternoon I did a pre-recorded interview with BBC Radio 4’s Farming Today programme. The subject was the House of Lords report on the 2010 EU budget, which says too much money is being spent on agriculture. The first question I was asked by the presenter shows how deeply the new (old) productivism has taken root over the past year. I was asked something along the lines of “Given the fears about food security, don’t we need a well-funded agriculture sector?”. [...]

The anti-EU agitprop outfit Open Europe has been huffing and puffing over the golden goodbyes that await those European Commissioners who will be put out to pasture when the current Commission’s five year mandate comes to an end later this year. Among their number is thought to be our own Agriculture Commissioner, Mariann Fischer Boel who, after five years of service in Brussels stands to receive approximately 270,000 euros of ‘transition money’ before her 43,000 euro a year pension kicks in.

The 66-year old Dane, who sports a trademark shock of snow white hair, has invoked the spirit of Hollywood actress Jennifer Aniston in the L’Oréal commercials, insisting the payout is entirely justifiable “because I’m worth it”. It’s just as well that the Commission scheme is so generous since Fischer Boel, who together with her husband owns several large livestock farms, is too old to qualify for the EU-funded early retirement scheme for farmers, which pays out a maximum of €18,000 a year to farmers who quit before turning 55. The typical ruse is for farmers approaching 55 to “retire” and apply for the early retirement money while passing the legal title of the farm on to a son or daughter who, in all likelihood, will qualify for an EU-funded young farmers startup grant worth up to €40,000. Both continue to work on the farm as before.

The influential Land Use Policy Group will be launching their vision for the future of the CAP after 2013 in Brussels on March 30th. This will be an important event in the long-term effort to clarify thinking about future policy so that it delivers benefits to the environment and rural communities. [...]

A charming young Estonian woman greeted me at the European Parliament yesterday when I went to give evidence to the Agriculture and Rural Development Committee (of which more in due course). Of broader significance Estonia is probably the only new member state with a clear concept of how the CAP should evolve. This is outlined in an Agra Focus interview with farm minister Helir-Valdor Seeder. [...]

With the health check done and dusted, European agriculture policymakers turn to the bigger questions of the future of the CAP after the current EU financial perspective, which ends in 2013. Ever since the Chirac-Schroeder deal of 2002, which fixed the overall CAP budget and allocation of direct payments for the subsequent eleven years, there has been no serious debate about whether agriculture policy should continue to consume upwards of 50 billion euros a year and whether the current instruments are able to meet current and future challenges. To help shed light on the debate, the Institute for European Environment Policy has this week launched a new website, called CAP2020.
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Later today Stefan Tangermann will step down as Director of the OECD Trade and Agriculture Directorate, a post he has held since 2002. The OECD has a strict ‘retire-at-65′ rule and it may surprise some to learn that the tall and spritely German, invariably sporting one of his trademark bow-ties, has reached such an age. Professor Tangermann has been a colossus among European agriculture policy analysts for at least two decades. Before taking the job at the OECD he was professor of agricultural economics at the University of Göttingen, having been appointed to that position in 1980.
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In the second of today’s podcasts from the European Parliament, Paulo Casaca MEP gives his immediate reaction to a series of votes on the CAP health check that saw many MEPs break ranks from agreed party lines, evidence of the passions that are aroused when the Parliament debates food and farming. He argues that the Parliament has lost its way on the CAP and must come up with a new vision for the future of the policy. Mr Casaca is a Portuguese member of the Socialist Group and represents the Azores. He sits on the Budget Committee and chairs the pro-CAP reform Land Use & Food Policy Intergroup.

Agra Focus has been conducting a series of interviews on EU farm policy and one of the longest and most interesting to date is with Allan Buckwell. He is currently policy director with the (England and Wales) Country and Land Business Association, but is also chair of the policy committee run by the European Landowners Association. He was for many years a respected agricultural economics and policy academic at the now sadly diminished Wye College. Perhaps his most interesting role in policy terms was when he spent a year in DG Agri in 1995-6 and chaired a group which wrote a report on a Common Agricultural and Rural Policy for Europe. [...]

The European Centre for International Political Economy (ECIPE) is a rare creature among Brussels think tanks: first, it advances a strong free trade agenda and second, it does not rely on EU institutions for its funding (its website says that its ‘base funding’ comes from the Free Enterprise Foundation in Sweden). Earlier in the summer EPICE published a briefing paper about the CAP written by Valentin Zahrnt. There’s not a whole lot new in the paper and there is a lot in common with a policy brief I wrote for the Centre for European Reform back in December 2005. The author comes down firmly on the non-trade-distorting, public money for public goods agenda advanced most strongly by Sweden, Denmark and the UK (and more moderately by the Netherlands). [...]

The Dutch have a well-deserved reputation for straight talking and so it is with the Government’s new position paper on the future of the CAP. As the following paragraph shows, there is no ambiguity over where the Netherlands government stands on the great targeting debate:

In the long term – as described in the present document– there will no longer be any question from the Dutch point of view of generic support for agriculture but solely of targeted payments for promoting competitiveness and sustainability and for socially desirable performance. This approach means that a drastic change will be necessary over the next few years. The disappearance of generic income support and market measures will, after all, mean that the instruments that account for 95% of Dutch CAP receipts (some EUR 1.2 billion a year) will disappear. In their place, there will be a new range of instruments that will reward agriculture-related activities – in a transparent and accountable manner – which represent added value for society but are not rewarded by the market, or are not rewarded sufficiently.

Download the report here. Hat tip: Roger Waite at Agra Facts.

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. It is a debate raging right now within DG Agriculture, a power struggle that is pitting CAP ‘modernisers’ who seek a greater role for the current rural development pillar against CAP ‘consolidators’ who defend the “Fischler settlement” and the current Commission Health Check agenda. What it boils down to is a debate over the fundamental role of public policy in agriculture. [...]

France has produced a paper on the future of the CAP which is designed to stimulate discussion at the informal farm council to be held there in the Rhone-Alps region on 21-23 September. The paper is very vague, no doubt deliberately so, and interpreting has to be an exercise in decoding. [...]

We’re used to the arguments that the CAP’s subsidies and tariffs are very bad for many desperately poor farmers in the developing world, with some going as far as to say that the EU has blood on its hands but now comes a piece of medical research which suggests that EU farm subsidies are responsible for more than ten thousand diet-related deaths among European citizens. [...]