One year after the budget review conference: What has happened with the CAP reform process?

Until recently, I have walked through Brussels with this grey-blue bag that all participants of the 2008 budget review conference received. In the meantime, it has fallen apart, and I don’t have anything to replace it. This is somewhat similar to the CAP & EU budget debate: the 2008 conference presenting the results of the consultation process briefly attracted broad attention, but subsequently, the debate fizzled out and was overwhelmed by the financial and economic crisis.… Read the rest

Do we need a "common" agricultural policy?

The final paragraph of Commissioner Fischer Boel’s valedictory leaflet is revealing and foreshadows the debate that has yet to surface about the future of the CAP after 2013, the end of the current financial perspective. Mrs Fischer Boel makes the case for maintaining a common European agriculture policy among the EU’s 27 member states, presumably funded from the EU budget, as it is now. … Read the rest

EU farmers drive Ukraine's agricultural revolution

Earlier this week BBC’s Newsnight aired an extended feature on how overseas farmers are bringing the investment that’s transforming Ukraine’s agriculture into vast arable mega-farms. There is no doubt that Ukraine, with its vast expanses of fertile land, has the potential to make a valuable contribution to the global supply of food. Let’s hope they avoid the mistakes made in industrial monoculture farming elsewhere in the world. And that some of the profits that are being made end up in the hands of ordinary Ukrainians.
View the feature here
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UK House of Lords reviews 2010 EU draft budget

In a recent report, the UK House of Lords European Committee criticised the European Commission’s proposals for the 2010 European Communities budget for maintaining a very high level of spending on agriculture, and failing to shift adequate resources to stimulus measures to aid economic recovery. It expressed frustration that, in the middle of an economic crisis, the proportion of the budget going to agriculture remained so large.

It identified a particular problem for the funding of the second tranche of the European Economic Recovery Programme. This was the stimulus package of €5 billion agreed in March 2009, of which €2.6 billion was to be funded from the 2009 budget and €2.4 billion from the 2010 budget.… Read the rest

Addressing the dairy crisis – is US intervention buying a good thing for EU producers?

Today, the US raised its intervention support prices for some dairy products as a way of supporting the US farm price for milk. The support price for skimmed milk powder was increased by 15 percent and for cheddar cheese by 16 per cent for a limited 3-month period. Immediately milk prices on the Chicago Mercentile Exchange increased by 5 per cent, and it is estimated that the measure will add $243 million to US dairy farm incomes in the current year.

From a European perspective, this measure has ambiguous effects and may even be welcomed for its short-run effects. In the short run, the Commodity Credit Corporation will enter the market as an additional buyer, raising the floor price of milk.… Read the rest