Europe's common agricultural policy is broken – let's fix it!
It is with great sadness that I report to readers of CAP Health Check the sudden and unexpected death of Secondo Tarditi, one of the agricultural policy experts contributing their thoughts to this blog. A fuller appreciation of Secondo’s life and his contribution to European agricultural economics will follow. In the mean time we express our sadness and extend our sympathies to Secondo’s family and friends who are mourning the loss of a talented, vivacious and charming man.
Fellow blogger Wyn Grant presented a paper in Paris last month which presents a wide-ranging overview of the changes in CAP policy instruments since its inception to the present day. His basic thesis is that over time the instruments have changed much more than the objectives and that this does reflect a shift in the content of the CAP and its ultimate goals. He concludes that it is changes in CAP policy which have led to changes in policy instruments, although he does cite some examples where the introduction of new instruments, possibly by creating obvious anomalies, can spark off wider policy debates (trading SFP entitlements, voluntary modulation).… Read the rest
Speaking at a meeting of the Parliamentary Agriculture Committee in Nicosia, Cyprus on 29 June, Agriculture Commissioner laid out her current thinking on the future of the CAP, in particular the changes she will be proposing later this year for the CAP Health Check.
John Gummer MP, the former UK Agriculture Minister who is currently advising Conservative Party leader David Cameron on farm policy, has taken a swipe those in his party who call for a repatriation of the EU’s common agricultural policy:
“There is no doubt at all that unless we get a kind of common deal in the EU farmers will get no money at all. No British government of any kind is prepared to foot the bill. Anybody who dares to talk about repatriation doesn’t care about farming because you won’t have it.”
The UK’s consumer prices index showed annual food price inflation of 6 per cent in April, the highest level in almost six years and well ahead of overall inflation of 2.8 per cent. In the US, prices have risen by 6.7 per cent, seasonally adjusted, since the beginning of the year, compared to 2.1 per cent for all of 2006. There are some proximate factors driving food prices. Florida promises the smallest orange crop in 17 years. Swine fever in China has pushed up local pork prices. Coffee prices have been pushed up by adverse weather affecting production in Vietnam and Brazil, the two largest producers.… Read the rest
The surprise parliamentary election defeat last Sunday of Alain Juppé, a leading member of newly-appointed French cabinet has forced President Nicolas Sarkozy into an unplanned cabinet reshuffle. Newly appointed Agriculture Minister Christine Lagarde has been promoted to the post of Finance Minister. The resulting gap at the Ministry of Agriculture and Fishing has been filled by Michel Barnier, who until 2005 served as European Commissioner for regional policy.
Barnier is from the the Isère département of the Rhône-Alpes région where he served in local government in the 1970s and 1980s before entering national politics in the 1990s. Together with Jean-Claude Killy he organised the 1992 Winter Olympics in Albertville.… Read the rest
Casual explanations of the persistence of the CAP put it down to the strength of the ‘farm lobby’. At a national level, there is some truth in this and the positions of member states in the Farm Council often reflect pressure from their domestic farmers’ organisations. After all, upsetting them is likely to lead to a lot of trouble and very few plaudits.
The hard line being taken by France’s new president, Nicolas Sarkozy, on the future of the CAP could have a paradoxical outcome: further re-nationalisation of the policy once seen as the cornerstone of the European Union.
In a classic example of how not to win friends and influence people, Peter Kendall, President of the UK National Famers’ Union, has described shoppers who buy organic food as having ‘more money than sense’. In the cover feature of last Saturday’s Financial Times weekend magazine, Kendall takes a swipe at the organic movement and in doing so break the cardinal law of sales: the customer is always right.
After Nicholas Sarkozy appeared to indicate that it was ‘business as usual’ in French agricultural policy, the appointment of Christine Lagarde as farm minister gives a ray of hope. Named as the 30th most powerful woman in the world by Forbes in 2006, she was formerly trade minister.
She was formerly chief of a big American law firm. Although she has been careful to say that agriculture would continue to have a ‘strategic’ role, Ms Lagarde also said that France could continue its position of ‘intransigence’ for ever. Perhaps she can use her skills as a synchronised swimming champion to move the debate on CAP forward.… Read the rest