It’s been a turbulent few weeks for French President Nicolas Sarkozy and voters expressed their dissatisfaction with his centre-right UMP party in regional elections yesterday. A resurgent Socialist-led opposition alliance took 52% of the vote and the UMP just 35%, squeezed in sevearl contests by the far-right National Front, which scored 9.4% of the national vote but took more than 22% in its two core regions in the north and south. Opposition candidates won in 21 of France’s 22 mainland regions.

Among the losers was French Agriculture Minister Bruno Le Maire (pictured, right), who was rejected by voters of Normandy, where he was standing for election as Regional President. Had he been succesful he would have stepped down as national farms minister. It now means he’s likely to stay on in the post and continue as France’s main man in the negotiations on the reform of the CAP.

Photo credit: Bruno Le Maire / flickr.com / creative commons

Roger Waite, editor of Agra Facts and frequent podcast guest on this blog, has accepted the job of spokesperson for Agriculture Commissioner-designate Dacian Ciolos. It’s sometimes said that you can count the number of people who truly understand the Common Agricultural Policy on the fingers of one hand. Roger is certainly among that select few. He’s been reporting on agriculture policy in Brussels for the past 17 years and certainly knows his way around. He speaks fluent French (and German?) and has been said to possess a ’silver tongue’. He steps into the larger-than-average shoes of Michael Mann, another poacher-turned-gamekeeper who gave up his job as the Financial Times Brussels correspondent to speak for Ciolos’s predecessor Mariann Fischer Boel.

Unlike some longstanding members of the Brussels press pack, Roger could never be accused of being a ‘cynical old hack’. As well as being knowledgable about the CAP, he’s excellent company, good humoured and approachable. He’s a true European and genuinely believes in the possibilities of a common agricultural policy that is better aligned to meet the challenges of the 21st century and that operates in an accountable and transparent way. He understands the political pressures that come to bear on CAP decision-makers and I am certain he’ll be a valuable asset to the Commissioner in the years ahead. I wish Roger well in his new job and look forward to continuing our good working relationship, albeit in an altogether new modus operandi.

According to EuroPolitics, Commissioner-designate Ciolos has also named to his cabinet Yves Madre, agriculture adviser at the French Permanent Representation to the EU. Austrian Georg Häusler will be his head of cabinet and Romanian national Sorin Moisa deputy head of cabinet.

Over at the excellent farmpolicy.com Roger Waite, editor of Agra Facts, has posted a thorough account of the appointment of the new EU Agriculture Commissioner Dacian Ciolos. He says that while Romania had sought the powerful position, it was really a case of appointment by default:

I tend to feel that Barroso was left with no other option, as no one was willing to put forward a good candidate – and that he was the only suitable candidate from among the nominees.

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Scotland is far more in tune with current thinking on farm subsidies in mainland Europe than England and Wales, claims Scotland’s rural affairs minister Richard Lochhead. Addressing farmers at a Christmas Carcass competition in Inverurie, Mr Lochhead brought them glad tidings about the deep divide in agriculture policies on the two sides of the border. ‘My opinion on CAP reform is very different from DEFRA’s view that all direct subsidies should be removed and we should rely on a free market. Scotland should not go down that route and our thinking is much closer to the mainstream of Europe which is that the pendulum is swinging back towards support for active agriculture.’ [...]

With the CAP among the EU’s oldest and biggest policies, it’s something of a surprise that no country has nominated an ‘agriculture specialist’ for the commission. This makes for a challenge to select an able successor to Mariann Fischer Boel, who came to the post having served as Farms Minister in Denmark as well as having farming background herself. In Brussels it seems as if the front-runner is the current Energy Commissioner Andris Piebalgs of Latvia. [...]

I’ve always found the notion of ‘agricultural economists’ a curious one. As if the normal rules of economics don’t apply to agriculture and there’s need for a special discipline of agricultural economics. In universities agricultural economists are often housed in their own special departments, separate from the regular Economics department. I wonder if this alternate universe of agricultural economics might explain the state of agriculture policy, whether in the EU, the US or elsewhere. Anyway, today a group of agricultural economists from 22 EU countries has come out in favour of radical reform of the Common Agricultural Policy. [...]

The next agricultural commissioner will have the chance to shape the future development of the CAP. So who will it be? [...]

Just as it’s hard to love Commission President José Manuel Barroso, it’s hard to loathe him. Maybe that’s why he’s the ultimate compromise candidate and has just secured a second five year term of office. President Barroso has just published political guidelines for the next Commission, setting out his stall for a ‘2020 vision’ of the EU. [...]

With co-decision on agricultural issues likely to come into force from next year, the European Parliament’s Agriculture Committee has assumed a new importance and there was plenty of competition for places. However, one unasnwered question is whether the Budget Committee will have a stronger influence on plenary voting patterns than the Ag committee. [...]

Vaasa, Finland: Philip Lowe is a leading figure in the rural studies community in the UK and he issues a stark warning about the so-called ‘new productivism’ in an interview that was issued to delegates at the ESRS Congress where he gave the opening plenary. [...]

Pillar 1 subsidies are likely to continue after 2020, forecast Professor Allan Buckwell, the Policy Director of the Country Land and Business Association, in an interesting talk at the President’s Seminar of the Royal Agricultural Society of England (RASE) in London yesterday. [...]

Earlier this week I was invited to take part in a round table discussion, as part of a major conference on the future of the CAP, organised by Birdlife/SEO and WWF. The conference began with a joint presentation by SEO and WWF of an interesting new proposal for CAP reform in Spain. The proposal envisages an end to Pillar 1 by 2019 and the transfer of all CAP funds to an environmental and rural policy oriented around the principle of ‘public money for public goods’, by which is meant those environmental ’services’ provided by farmers, particularly in areas of high nature value (HNV) farming such as upland pastures and native grasslands. [...]

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 latest Journal of Common Market Studies (vol.47, 2, March 2009) contains an important article exploring the determinants of CAP reform. It is written by Alan Swinbank, a distinguished agricultural economist and a leading proponent of reform and Arlindo Cunha who was chair of the Agriculture Council in 1992 at the time of the MacSharry reform. [...]

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. [...]

I have a lot of sympathy with tenant farmers. It is sometimes said that farmers are asset rich but income poor, by which it is meant that they own a lot of extremely valuable land but don’t make a whole lot of profit from working it. In the case of tenant farmers, who have to rent their land, they are too often asset poor and income poor.

The UK Tenant Farmers Association recently held its annual jamboree and, fresh back from his half term holiday in Egypt, National Chairman Greg Bliss gave a speech. He used the occasion to share some observations about agriculture policy that I thought might be of interest to readers of this blog. For those who are not familiar with a dialect known as ‘farm union leaderese’ (which is rare, though it can be found all over Europe and North America) I have provided translations of the key passages. [...]

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. [...]

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.

The European Parliament today votes on the CAP health check. I spoke with Neil Parish MEP (pictured right), who represents the largely rural constituency of South West England and is a farmer himself. He also chairs the Parliament’s agriculture committee, which drafted the report that is being voted on today. Perhaps unusually for a committee chairman, Neil will be voting against his own committee’s report. We discuss the key issues in the health check end-game and the role of the Parliament, the prospects for the CAP reform in the EU budget review and the positive effect of the fall of sterling for UK farmers.

Mariann Fischer Boel attended the plenary debate on the CAP health check in the European Parliament earlier today. There is little to report from the debate – most of the contributions were bland and reflected the general desire of the European Parliament to water down the Commission’s reform proposals. Neil Parish MEP called for the pace of reform to continue but it was Brian Simpson MEP who made the most powerful dissenting speech, ripping into the Parliament’s draft report, written by Luis Manuel Capoulas Santos MEP. Mr Simpson concluded that

“Your position, Commissioner, on compulsory modulation, is right. Your position on decoupling is right. For once we have a Commission that seriously wants to reform the CAP but faces a Parliament that always fails to deliver on this issue and believes that the challenges that we face can be solved by sticking to the old, discredited system. Hang tough, Commissioner, you are right and sadly, I suspect, this chamber will be wrong.”

It might interest some to see the Commissioner’s short speech.

A major conference entitled “Reforming the Budget, Changing Europe” was held yesterday in Brussels, marking the end of the consultation phase of the ‘no taboos’ review of the future of the EU budget led by Budget Commissioner Dalia Grybauskaité. The former Lithuanian finance minister presented the results of the consultation process that received more than 300 responses including position papers from each of the twenty-seven member states along with NGOs, universities, regional and local governments, think tanks, lobby groups and businesses. It is clear that Grybauskaité is no friend of the Common Agricultural Policy, especially its €30 billion in direct payments. [...]

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. [...]

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. [...]