One proposal in the Commission’s health check communication of 20 November 2007 is that the member states which still allocate farm subsidies on the basis of historic entitlements should move to the area average system in which allocations are the same across all hectares in a given geographical region. But it looks as though this change will be optional, according to a speech made by Commissioner Fischer Boel in Ireland on 29 January. Moreover, the flat rate system does nothing to address the striking inequalities between member states, which shows that on average, Dutch farmers get €1299 per hectare, while Portuguese farmers get just €88.… Read the rest
Commission drops plan to reduce 'fat cat' farm subsidies
Top Commission officials have confirmed that in the face of opposition from four member states (Czech Republic, Germany, Slovakia and the UK) as well as many farm unions, Mariann Fischer Boel has dropped plans to cut the very largest farm subsidy payments by 45 per cent. The plan, which would have affected an estimated 23,000 farms that receive in excess of €300,000 a year, a list which is dominated by Europe’s wealthiest landowners such as the Duke of Westminster, Prince Albert of Monaco and the Crown Prince of Liechtenstein. … Read the rest
WTO Agricultural Chair presents new modalities paper
The Chair of the agricultural negotiations at the WTO, Crawford Falconer, released his latest version of the draft modalities for an agricultural agreement on Friday last 8 February. This is the culmination of a series of intensive meetings since early January among a representative group of some 37 WTO members. Although there are still many square brackets in the text, representing areas where final political agreement will only be reached in the context of an overall trade-off against concessions in the non-agricultural market access (NAMA) negotiations, the text provides greater clarity on many of the more contentious issues that were outstanding in the previous incarnation of these draft modalities last July.… Read the rest
European Parliament takes aim at CAP direct payments
A new report commissioned by the Budget Committee of the European Parliament makes interesting reading. The report, written by Jorge Núñez Ferrer (a former Commission fonctionnaire) and Eleni A. Kaditi, both of the Centre for European Policy Studies in Brussels, aims to asses whether the CAP provides ‘added value’. Núñez Ferrer and Kaditi define this as whether “the benefits outweigh the costs, not only of implementing the policy, but also the costs created in other areas.” The authors don’t pull their punches, particularly when it comes to direct payments which, costing some €30 billion a year, are by far the biggest ticket item in the CAP.… Read the rest
Churchill, Malthus, Brown, Barnier and agricultural protectionism
Earlier this week, BBC Radio 4 broadcast Churchill Confidential, a dramatisation of British cabinet meetings chaired by Prime Minister Winston Churchill, records of which have only recently been released into the public domain. In this week’s episode, looking at Churchill’s second term of office (1951-55), we get an overview of the pressing issues of state at that time: the impending conflict with Egypt over the Suez Canal, the development of the British atom bomb, balancing Britain’s relationships with its European neighbours and the United States of America, immigration and race relations, the coronation of Queen Elizabeth II, the devaluation of the pound and, somewhat incongruously… a decision on whether to reduce the meat ration.… Read the rest
Barnier et son 'B-Team' s'installent un camp de base à Bruxelles
With the Slovenian Presidency of the EU barely a month old, the French government is already limbering up for its defense of the CAP during the Health Check and the budget review when France takes the helm of the EU in the second half of 2008. Farms minister Michel Barnier is here in Brussels all this week along with his ‘B-Team’: a 22-strong crack unit of Paris-based diplomats and civil servants on a mission to familiarize themselves with EU institutions, places and faces and to plot with old allies in the battle against reform such as those reactionary dinosaurs at COPA-COGECA and their more youthful offspring.… Read the rest
Goepel plan: weak, weak, weak
The European Parliament’s agriculture committee published a working paper on the CAP health check at the end of last year. Tamsin Cooper and Martin Farmer at IEEP have already argued that from an environmental perspective it lacks ambition and is internally inconsistent. I have looked in detail at the working paper’s proposals for ‘progressive modulation’ which is put forward as an alternative to both the Commission’s proposals on payment limits and increased compulsory modulation.… Read the rest
European Parliament’s View of the Health Check Holds Little Promise for the Environment
The European Parliament is seeking an outcome to the CAP Health Check that does not compromise the competitiveness of EU farming or diminish the value of farm subsidy receipts. This is the vision presented in a working document drafted by German MEP Lutz Goepel of the Parliament’s Committee on Agriculture and Rural Development. The paper acknowledges the need for some evolution of the CAP, but presents a sometimes inconsistent set of suggestions, a number of which are likely to run counter to arguments in favour of promoting a more environmentally sustainable CAP. The paper is examined in further detail below. … Read the rest
Agricultural commodity prices continue to climb
One thing which we can predict with great certainty that the New Year will bring is continued high commodity prices. Agricultural product prices continue to hit record levels. In the US, futures prices for the 2008 crops of corn, wheat and soybeans all hit new highs in recent trading sessions. We review some of the evidence in this post.… Read the rest
Forging the link between the Health Check and the Budget Review
The CAP Health Check has been promoted by the Commission as an exercise focused on tidying up the loose ends of the 2003 Mid Term Review and adapting the CAP to an evolving set of circumstances for the period 2008 – 2013. However, this is only half the equation. The Budget Review is set to open up a much more fundamental debate on the rationale for European expenditure on agriculture, and in doing so will delve into the very heart of the CAP. … Read the rest