Surging prices for agricultural commodities means that the EU spends much less on the traditional ‘market measures’ of the CAP such as intervention buying when prices fall below a target price, export subsidies and private storage aid for unsold surpluses. Last year the EU decided to allocate some of this underspend to the Galileo space programme. This year, the proposal is to channel the money to farmers in developing countries who currently suffer from very low productivity.… Read the rest
Rising food prices and the dangers of imported inflation
When UK Chancellor Alistair Darling wrote to his finance minister colleagues on ECOFIN last month he made the case for reducing agricultural trade barriers and EU farm subsidies as a way of addressing what has become known as the ‘global food crisis’. Quite rightly much of the world’s attention has been focussed on the impact of rising food prices on the world’s poor. But a more motivating factor for the UK could be the fact that higher food prices presents the UK economy with the very serious problem of imported inflation.… Read the rest
Barroso's disappearing biofuels poll
For the past couple of weeks José Manuel Barroso, President of the European Commission, has been running an online poll on his website, asking visitors to express their opinions on EU’s biofuels policy. At the last count, some 89 per cent of the 60,000 respondents had voted for the EU to drop its biofuels targets, which have been widely criticised for taking food out of the mouths of the world’s hungry to put in the gas tanks of European vehicles. As of today the poll has mysteriously disappeared from President Barroso’s website, and nowhere has the result been announced. Has the President of the Commission been taking election advice from Robert Mugabe?… Read the rest
Mapping the CAP 1: Google maps v farmsubsidy.org
Over at farmsubsidy.org you can see the first fruits of a mapping project which aims to place every EU farm subsidy payment on a fully interactive web-based map, powered by the excellent Google Maps. The first country to get the mapping treatment is Sweden, chosen because its government has been by far the most transparent in terms of farm subsidy payments. The map displays some € 7 billion in CAP expenditure in 2 million payments to 114,700 recipients since 2000. We think the map-based interface is a fascinating new platform for bringing the CAP closer to the citizens that pay for it.… Read the rest
“Notre Europe” brainstorming
The think tank “Notre Europe” just released a document on the future of the CAP. Notre Europe’s point of view is that because the health check (HC) is likely to lead mostly to short term adjustments, the “real” debate on the CAP is likely to take place before the next financial perspectives. The outcome could be very contingent to the situation that will prevail in 2013 (e.g. market situations). Notre Europe launched a reflexion that intends to look to more structural changes, with a longer term horizon than the HC.
All the members of the (large) task force did not share a common position on this issue and instead of producing a UN-type consensual document, two of the members, L.P.… Read the rest
"Notre Europe" brainstorming
The think tank “Notre Europe” just released a document on the future of the CAP. Notre Europe’s point of view is that because the health check (HC) is likely to lead mostly to short term adjustments, the “real” debate on the CAP is likely to take place before the next financial perspectives. The outcome could be very contingent to the situation that will prevail in 2013 (e.g. market situations). Notre Europe launched a reflexion that intends to look to more structural changes, with a longer term horizon than the HC.
All the members of the (large) task force did not share a common position on this issue and instead of producing a UN-type consensual document, two of the members, L.P.… Read the rest
Health Check ‘explainer’ by Roger Waite
Roger Waite, editor of Agra Facts and long-time Brussels CAP watcher, has written a superb ‘health check explainer’ for farmpolicy.com, the US-based farm policy news source. The briefing covers what the health check is in terms of policy, process and politics. Highly recommended reading and reproduced in full below, with permission.… Read the rest
Health Check 'explainer' by Roger Waite
Roger Waite, editor of Agra Facts and long-time Brussels CAP watcher, has written a superb ‘health check explainer’ for farmpolicy.com, the US-based farm policy news source. The briefing covers what the health check is in terms of policy, process and politics. Highly recommended reading and reproduced in full below, with permission.… Read the rest
Irish farmers: biting the hand that feeds them?
The Republic of Ireland will hold a referendum on ratification of the EU’s Lisbon Treaty on 12 June 2008. The Irish Farmers Association is urging a No vote, on the grounds that the EU’s push towards more open world markets in agriculture could expose them to competition from overseas, notably from Latin America.
Ireland gets way more than it’s fair share of EU farm handouts. And this fact will not be lost to other member states if Ireland votes to derail the Lisbon Treaty. The EU is currently engaged in a fundamental, ‘once in generation’ review of its budget. The main target for cuts appears to be the agriculture budget, which accounts for around 45% of all EU spending.… Read the rest
What is happening to EU land prices?
The evolution of agricultural land prices and rents can be a good indicator of the effect of agricultural policy, because of the assumption that a significant proportion of the transfers to farmers as a result of such policy are capitalised into land values. Thus, changes in agricultural policy may have implications for land values, and the prospect of capital losses due to a fall in land values can be one source of opposition to such changes.
The issue is relevant in the context of the Commission’s proposals to introduce a ‘regret clause’ with respect to the implementation of the Single Payment Scheme as part of the Health Check.… Read the rest