Author: Alan Matthews

Alan Matthews is Professor Emeritus of European Agricultural Policy in the Department of Economics at Trinity College, Dublin, Ireland. His major research interests are agricultural policy analysis, the impact of international trade on developing countries, and computable general equilibrium analysis of trade and agricultural policy reforms. He has worked as a consultant to the European Parliament, the OECD, the Food and Agricultural Organisation of the United Nations and the UN Industrial Development Organisation, and has been a panel member in a number of WTO Dispute Settlement procedures. He is a former President of the European Association of Agricultural Economists but writes here in a personal capacity.
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Brakes removed from voluntary coupled support

I have previously written about the provisions for voluntary coupled support (VCS) in the 2013 CAP reform package in this blog post in 2015 entitled “Two steps forward, one step back: coupled payments in the CAP”. That post gives a historical overview of the gradual phasing out of coupled payments during the 2000s and the reversal of this process in the 2013 reform. In the recently-agreed Omnibus Agricultural Provisions Regulation (EU) 2017/2393, a significant relaxation of the conditions that Member States must meet in gaining approval for their VCS schemes was introduced. The negotiating history of this amendment is particularly opaque and sheds an interesting light on the secrecy and non-transparency of the trilogue process in which the Council and European Parliament, as co-legislators, try to reach agreement on legislative proposals.… Read the rest

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The ANC delimitation controversy continues

Last week it was the turn of farmers in the south-west of France to take to the streets to protest against the introduction of new maps of Areas facing Natural Constraints (ANCs). I have explained the background to this controversy in a previous post , which essentially revolves around how to define ANC category (b) areas which are described in the Rural Development Regulation 1305/2013 as “(b) areas, other than mountain areas, facing significant natural constraints.”

For years the European Court of Auditors criticised Member States for designating these areas (previously referred to as Less Favoured Area (LFA) intermediate areas) without proper documentary evidence.… Read the rest

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Mr Oettinger’s budget arithmetic

Two events in the previous week give us a much clearer idea of what to expect for the CAP budget in the Commission’s proposal for the next Multiannual Financial Framework (MFF) at the end of May. Of course, the Commission’s proposal is only the start of the MFF negotiations. The MFF must ultimately be agreed unanimously by all Member States and (for the own resources decision) by their national parliaments, and also gain the approval of a majority in the European Parliament. Much can happen between the initial proposal and the final Council conclusions.

The two events in the previous week were Budget Commissioner Oettinger’s speech setting out his approach to the MFF proposal at a meeting in Brussels organised by the European Political Strategy Centre, the Commission’s in-house think tank, and his comments following the first presentation of his ideas to the Commission College.… Read the rest

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EU farm incomes in 2017

Eurostat has produced its first estimate of agricultural income in 2017, and it makes interesting reading. Both real agricultural income per Annual Work Unit (called indicator A in Eurostat terminology) as well as real agricultural entrepreneurial income per unpaid Annual Work Unit (Indicator B in Eurostat terminology) reached record levels (see chart below). This is surely something to be welcomed, even if COPA-COGECA did not issue a press release to draw attention to this fact. Across the EU as a whole, income from farming when divided among those working in the industry is in a robust state, even if the regular grumbling from industry representatives sometimes gives the opposite impression.… Read the rest

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Rethinking EU budget spending on agriculture in the next MFF

This post reproduces my key-note statement to the session More efficient use of scarce financial resources – An efficient Common Agriculture Policy and focussed structural Funds at the European Political Strategy Centre High Level Conference ‘Shaping our Future: Designing the next Multiannual Financial Framework’ which was held 8-9 January 2018 in Brussels. The delivered version was slightly abbreviated for time reasons.

The session was intended to reflect on more efficient use of scarce financial resources in the EU budget’s two largest spending categories – agricultural policy and structural funds. I expected my fellow panellists to have a lot to say about structural funds, so my presentation focused on agricultural policy.… Read the rest

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Pitfalls on the way to a Brexit transition period

Most of the attention around the European Council meeting on 14-15 December 2017 last focused on the implications of the Joint Report agreed between the UK and EU negotiators on 8 December for the three key Phase 1 issues – citizens’ rights, the financial settlement, and the border between Ireland and the North of Ireland. Sufficient progress on these issues was the prerequisite for the European Council to agree to move to the second phase of the negotiations. Both the European Council in its conclusions and the European Parliament in its resolution of 13 December 2017 agreed with the Commission recommendation that sufficient progress had been achieved.… Read the rest

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Decoding the CAP Communication

The CAP Communication was published by the Commission on 29 November last. In a previous post, I commented on an early leaked draft of this Communication. A number of changes in emphasis were added in the final version but the basic structure of the proposal has not changed. It is nonetheless worth to revisit the document and the Commission’s suggested vision for the direction of the CAP after 2020.
Much of the initial reaction both in the meeting of the European Parliament’s AGRI Committee to which Commissioner Hogan presented the Communication on the day of its publication (the video can be watched here) and at the December meeting of the AGRIFISH Council where Agriculture Ministers had their first chance to discuss the document (the discussion was held in private session but Vice President Katainen’s speaking notes are available and the subsequent press conference can be viewed here) focused on the proposed new delivery model for the CAP.… Read the rest

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How Member States are implementing the new CAP

All the focus last week was on the publication of the Commission Communication on the Future of Food and Farming. This document has been greeted with both curiosity (concerning the potential of the proposed new mode of delivery and governance to deliver both simplification of the CAP as well as improved targeting and results on the ground) and criticism (from farm groups worried that it eliminates the ‘common’ in the Common Agricultural Policy and environmental groups worried that it could facilitate the continued transfer of a large chunk of the EU budget to farmers with no questions asked). It will take some time to tease out its full implications, and this is something I will return to on this blog in the future.… Read the rest

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Another look at the possible Brexit implications for the CAP budget

Preparations within the Commission for its next MFF proposal, which is now expected in May next year, are well under way. Thinking on the shape of the next MFF began in January last year with the Dutch Presidency Conference on preparing for the next MFF. In December 2016 the High Level Group on the Future Finances of the EU produced its final report and recommendations for a reform of the own resources side of the MFF. In June 2017, the Commission produced its Reflections Paper on the Future of EU Finances. This was one of a series of Reflection Papers published by the Commission in the wake of its White Paper on the Future of Europe published in March 2017.… Read the rest

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Leaked draft of the Commission Communication on Future of the CAP

Brussels has been buzzing in the past week since copies of the draft Commission Communication on the Future of the CAP which is set to be launched on 29 November next were leaked – you can read it and download a copy from the ARC2020 website. The status of this document is not clear – my guess is that this is the version that has been prepared by DG AGRI for the Inter-Service Consultation process which normally takes two to three weeks. This is where DG AGRI would get the formal opinion of the other DGs on its proposal, which it would then take into account in its final Communication.… Read the rest