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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Who feeds Europe, and how much do they earn?

One of the demands in the ongoing farmer protests is for fair prices and a fair income. But how many farmers are there and what do individual farmers earn? In my previous post, I examined income trends at an aggregate level, both for the EU and for France as a Member State case study. In this post, I want to dig more behind the aggregate numbers to look at how incomes are distributed within the farming sector.

There are 9 million farms (holdings) in the EU. This figure comes from the latest Agricultural Census taken in 2020 (with figures in the inter-census years derived from the Farm Structure Surveys usually taken every three years or so). The requirements for a holding to be included in the Agricultural Census that year were set out in  Regulation (EU) 2018/1091. Previously, there had been a specific requirement to cover all agricultural holdings above 1 ha in size.… Read the rest

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What is actually happening with agricultural incomes?

Farming protests are currently taking place in several European countries. Several reasons are advanced for what is prompting these demonstrations – concerns over incomes and rising costs, the burden of additional environmental regulation, free trade agreements with third countries, the uncertainty arising from increasingly volatile weather conditions, the sense that society no longer values the work of farmers in the same way as in the past. No doubt all factors play some role, but in this post I want to dissect the farm income context. I make use of a chart that I posted on my X and LinkedIn feeds a little time ago, but a blog post allows me to give some additional background.

We frequently hear that farmers’ incomes across Europe have been under pressure from a variety of factors, ranging from strong price fluctuations to rising production costs and extreme weather phenomena. The basic message of the chart (which I reproduce later in this post) is that, on the contrary, farmers have made steady gains in their income from agriculture over the last two decades (since 2005) and agricultural income levels have been at their highest in the past three years, despite higher input costs.… Read the rest

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The European Scientific Advisory Board on Climate Change 2024 progress report and agricultural emissions reduction

The newly established European Scientific Advisory Board on Climate Change (ESABCC) first made its mark when delivering its advice to the Commission in July 2023 on setting the EU’s 2040 mitigation target. It recommended emission reductions of 90–95% by 2040 relative to 1990. The Commission Communication proposing its climate target will be published on 6 February 2024. It is expected to propose a reduction target in net emissions of at least 90% in line with the recommendation of the Advisory Board. This is the target to which the new Climate Commissioner Wopke Hoekstra committed in his appointment hearing before the Parliament’s Environment Committee in October last year.

The ESABCC has now followed up with its first progress report published last week 17 January 2024 containing advice on policy actions that can support the legal target in the European Climate Law of achieving climate neutrality by 2050 at the latest. The report includes both an assessment of progress, based on an analysis of relevant indicators and their comparison with indicative benchmarks, as well as an assessment of the consistency of existing policies with the EU’s climate objectives.… Read the rest

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European Parliament polling reaches tipping point for right-of-centre majority

Latest polling results from the three institutions that provide regular updates on seat projections for the European Parliament elections in June 2024 now point for the first time to the possibility that the three right-of-centre political groups – the EPP, ID and ECR – may have a majority of seats on their own in the next Parliament.

My previous synthesis of the seat projections in May 2023 (see my blog post here) showed that the left-of-centre groups – S&D, Greens and the Left – together with Renew were still slightly ahead of the right-of-centre groups though they would have required support from the independent MEPs – the so-called Non-Inscrits – to create an overall majority. This is no longer the case.

In the following table, I present the seat projections by the three institutions – Europe Elects, Politico Poll of Polls, and Der (europäische) Föderalist – as a percentage of the overall number of seats (note, this is not a projection of the share of total votes received by the national political parties affiliated with these political groups).… Read the rest

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Contrasting recent decisions on pesticides

During the past week, I was intrigued by a post on the social media platform X from Pascal Canfin, Chair of the Committee on Environment, Public Health and Food Safety in the European Parliament which in translation read: “We have just rejected in Parliament a proposal from the Commission which would have allowed the importation of foodstuffs produced with a pesticide banned in Europe, tricyclazole. This would have been unfair competition that was unacceptable for our farmers. I welcome it.”

What intrigued me about this post was the implication that, because the Parliament had rejected the Commission proposal, the imports of foodstuffs (specifically, rice) produced with tricyclazole into the EU would no longer be possible.… Read the rest

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Trilogues begin on the Certification Framework for Carbon Removals Regulation

The Commission put forward its legislative proposal for a Certification Framework for Carbon Removals (CFCR) in November 2022. The Regulation has the two broad objectives to define quality criteria for carbon removal activities to ensure only high-quality removals are certified, and to define rules for the verification and certification of carbon removals, including rules for the functioning and recognition by the Commission of certification schemes. The main innovation in the Regulation is that it defines Certified Removal Units (CRUs) that can be used in national or corporate GHG inventories or exchanged through voluntary carbon markets.

In a previous post last September, I discussed the amendments to the Commission’s proposal being discussed by the Council and European Parliament at that time. Last month, both institutions finalized their mandate for negotiations (the Council) and first reading position (the Parliament). I summarise in this post the main changes proposed by the two institutions to the Commission’s proposal, using the framework developed in the previous post.… Read the rest

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Europe’s future of food – articulating food security, sovereignty and sustainability

I was pleased to be invited to give a talk at the EIT Food conference on the future of food last Thursday where the organisers had given me the very ambitious title at the head of this post. I reproduce below the talk as I presented it, with one small modification. The great advantage of attending a conference of this kind is that one is alerted to new perspectives and new angles and, in the light of listening to some of the other excellent contributions to the conference, I slightly nuanced one of my conclusions below (I note the specific change at the end of this post).

My key message is that there are inevitable trade-offs in the transition to a sustainable food system, but that the discourse around a threat to food security is not helpful or correct and masks other trade-offs which policymakers should address more directly. I have included the slides in this blog post, but the presentation can also be downloaded directly if anyone is interested.… Read the rest

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How to advance the green transition in the next CAP post 2027

Even though the latest changes in the CAP regulations only came into force on 1 January this year, attention is already beginning to focus on potential further changes to the CAP after the end of the current programming period 2023-2027. The Commissioner for Agriculture Janusz Wojciechowski started the ball rolling back in June. In his contribution to the European Parliament debate on the Mortler Report on ensuring food security and long-term resilience of EU agriculture which, inter alia, called on the Commission to present a holistic plan to ensure food security for the EU, he commented:

I am in full agreement with this. We need a plan presented by the Commission to ensure food security in the European Union, a plan that also takes into account the role of the European Union in global food security. This will also be a plan for elements of the Common Agricultural Policy after 2027, and I intend to prepare and present such a plan in the coming months, certainly still in 2023.… Read the rest

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Carbon removal certification and carbon farming

The concept of ‘net zero’ greenhouse gas emissions enshrined as the EU target in the European Climate Law implies that there will continue to be ‘unavoidable’ emissions in 2050 which will need to be offset by carbon removals from the atmosphere. For example, it is not possible for primary agriculture to reduce its gross emissions to zero and in a net zero world these will have to be offset by carbon removals. Furthermore, the Law sets the aim of negative emissions after 2050. While the IPCC recognises that carbon removals will be necessary to meet the Paris Agreement targets, there is still debate around how to define ‘unavoidable’ emissions and how large carbon removals will need to be by mid-century. The Commission has estimated that carbon removal levels between 300 and 500 MtCO2 will be needed by 2050 depending on the emission reduction pathway to net zero.

Sustainable carbon cycles

The Commission in its Communication on Sustainable Carbon Cycles in December 2021 recognised the need to significantly scale up carbon removal solutions in the coming decade.… Read the rest

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Food prices stabilising but yet to fall

I wrote a blog post in March this year “Food price inflation gathers pace” which used inflation data up to February. I concluded that post by noting that “the explanation for the continuing rise in food price inflation is mostly likely down to the lags in transmitting price changes through the food price chain. Food price increases in the past year, though very high, have not fully reflected the increases in prices at primary producer level. As food manufacturers and retailers continue to adjust their prices to these higher input costs, food price inflation is likely to continue at a high level”.

In this post, I bring the story up to date using information up to June 2023. My prediction in March 2023 seems borne out by the data. Food price inflation remains very high but there is evidence that food prices at EU level have stabilised and that we can expect some modest decrease in the coming months.… Read the rest