Europe's common agricultural policy is broken – let's fix it!
If there was a jewel in the crown of the CAP health check deal agreed last November it was probably the decision to phase out milk quota between now and 2015, with a one per cent increase in quota each year. But this prize is now under threat as several powerful EU member states led by Germany have argued at today’s Agriculture Council meeting that the reform should be postponed.
Is it too early to call it a depression? Difficult to tell, but all the news this month is pointing in that direction. So it is timely that over at the CAP2020 blog, Martin Farmer has written a lengthy post on the impact of the global economic slowdown on farming. In many respects, it’s a case of swings and roundabouts. Commodity prices are down, but so too are key input prices like oil. Consumers have less money to spend, but they still need to eat. Recent spikes in profits provide new money for investment, but bank loans have never been more costly.… Read the rest
I realise that opposition politicians have to say all things to all persons and jump on any bandgwagon that’s going on, but I must say that I found an interview with Nick Herbert, the shadow Defra secretary, in Farmers Weekly a bit disappointing. It remains to be seen whether the MP for Arundel and South Downs will be Defra secretary in David Cameron’s Conservative government, or even whether Defra will remain in his present form. However, if his thinking is typical of that in the shadow cabinet on agriculture and food matters, it’s a bit worrying. It looks as if we could be lurching back towards productionism.… Read the rest
One of the many drawbacks of the CAP is that it costs a lot of money to run which reduces the sums that reach the supposed beneficiaries. It has now emerged in response to a parliamentary question that each claim for the Single Farm Payment (SFP), irrespective of its value costs £742 to process. Junior Defra minister Jane Kennedy said that the figure was obtained by considering the direct processing costs and the total number of claims received.
The influential Land Use Policy Group will be launching their vision for the future of the CAP after 2013 in Brussels on March 30th. This will be an important event in the long-term effort to clarify thinking about future policy so that it delivers benefits to the environment and rural communities.
I have a lot of sympathy with tenant farmers. It is sometimes said that farmers are asset rich but income poor, by which it is meant that they own a lot of extremely valuable land but don’t make a whole lot of profit from working it. In the case of tenant farmers, who have to rent their land, they are too often asset poor and income poor.
The UK Tenant Farmers Association recently held its annual jamboree and, fresh back from his half term holiday in Egypt, National Chairman Greg Bliss gave a speech. He used the occasion to share some observations about agriculture policy that I thought might be of interest to readers of this blog.… Read the rest
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
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
Last week I posted five reasons why it is hard to justify spending 30 billion euros each year on the Single Payment Scheme. Here are five more reasons.
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.