You will be forgiven for wondering why things have been a little on the quiet side here at CAPHealthCheck.eu over the past couple of months. For my part, besides some intensive behind-the-scenes work at farmsubsidy.org and and exciting new EU budget transparency project that’s still under wraps, I’ve been blogging more on the EU budget than on the CAP, mostly over at FollowTheMoney.eu. Among the other leading contributors to this website, Wyn Grant has been on a fact-finding visit to Australia and Alan Matthews has been attending to his teaching responsibilities as well as working away on his forthcoming magnum opus on the CAP and global development.… Read the rest
10 reasons why the Single Payment Scheme is politically unsustainable
The EU spends around 30 billion euros each year on the single payment scheme, by far the largest of the myriad schemes and programmes that together comprise the 54 billion euro budget of the Common Agriculture Policy. The scheme was first introduced in 2005 but it is hard to see it surviving in its current form beyond the end of the EU’s 2007-13 financial perspective. Here are five reasons why the single payment scheme is not politically sustainable. Five more will follow tomorrow.… Read the rest
Health check redux and commodity market worries
There is an excellent piece of analysis from Roger Waite, editor of Agra Facts, on the final health check legal texts and the current situation in commodity markets. Falling prices are worrying farmers and piling the pressure on policy makers to turn the clock back on the CAP, with the ink barely dry on the health check.
Read Roger’s insights over at farmpolicy.com.… Read the rest
Budget pressure on CAP
With the Health Check out of the way, it looks as if the medium-term future of the CAP is going to be strongly influenced by discussions of how the EU budget should be spent. This always raises the awkward question of the opportunity cost of spending large sums of money on subsidising farmers.… Read the rest
More on Irish pigmeat compensation
The European Council at its last meeting under the French Presidency on 11-12 December had a weighty agenda, discussing the EU energy and climate change package, the European economic recovery plan and agreeing with the Irish government an approach which might allow the Lisbon Treaty to enter into force before the end of 2009. The Council also welcomed the political agreement on the CAP Health Check and, in a move surely made with one eye on the upcoming second referendum in Ireland on the Lisbon Treaty, it “expressed its support for Ireland’s effort to deal with the situation relating to pigmeat and its prompt precautionary action.… Read the rest
+++ Breaking news: world's peat lands under threat from EU biofuels law +++
I’m told that the Finnish and Swedish governments (backed by the French EU Presidency) are working right now to insert a loophole to new EU biofuels sustainability standards that would allow the destruction of the world’s peat lands, with appaling consequences for increasing global greenhouse gas emissions. Chapter and verse from BirdLife International after the jump.… Read the rest
Court of Auditors' report on cross compliance is damning
It’s no wonder that the Commission suppressed the Court of Auditors report on cross compliance for as long as it could – the report is damning and undermines the Commission’s case for the legitimacy of EU farm subsidies.
Speaking in 2005, Agriculture Commissioner Mariann Fischer Boel explained how she sees cross compliance in relation nearly 40 billion euros of public expenditure on payments to farmers:
… Read the rest“I would emphasise that decoupled payments are not “money for nothing”. To get the cheque in the post, a farmer has to respect a demanding range of standards related to the environment and animal welfare. We call this system “cross-compliance”.”
Implications of reforming the basis for SPS payments
A recent paper by Beatriz Velaquez from the European Commission throws light on the consequences of moving towards a flat-rate scheme for SPS payments. Drawing on the Impact Analysis for the CAP Health Check proposals and using the FADN database of farm accounts, she examines three options (a) a flat rate scheme with equal payments per hectare across Member States; (b) a flat rate scheme with equal payments per hectare within Member States; and (c) a flat rate scheme with equal payments per entitlement. Her provocative conclusion is that an EU-wide flat rate would do nothing to improve the distributional equity of the SPS payment scheme.… Read the rest
Useful primer on CAP reform
I only recently came across a paper by Franklin Dehousse and Peter Timmerman published by the Egmont Institute, the Royal Institute for International Relations in Belgium entitled The New Context of the Agricultural Debate in Europe. Although published in June of this year, and thus written prior to the recent political conclusion to the CAP Health Check, it provides an excellent summary of CAP developments since the 2003 Mid-Term Review. The paper is not an evaluation of the reforms (Dehousse is a lawyer and Judge at the Court of first instance of the European Communities) but a well-referenced account of the road the CAP has travelled in the past five years.… Read the rest
The last word on biofuels
It’s December and the weekend newspaper supplements are already starting to swell with all those ‘end of the year’ reviews – on news, sport, books, films, celebrity gossip… In the same spirit my German Marshall Fund colleague Dr Tim Searchinger has written a policy brief that brings together in one place the conclusions of ten major reviews of biofuel policies that have been released by leading international insitutions, national technical agencies, and international scientific organizations since January 2008. … Read the rest