Europe's common agricultural policy is broken – let's fix it!
An impact assessment of the European Commission’s proposed reforms to the CAP wine regime warns that job losses are inevitable in parts of Europe most responsible for the distillation of wine. The report quotes Italian organisations, not an entirely disinterested source, that the sector could lose 75 per centr of its jobs in Italy.
A report by the Environment, Food and Rural Affairs select committee of the UK Parliament has called for the EU’s Common Agricultural Policy to be replaced by a new “Rural Policy for the EU”. While the committee of MPs, whose job is to shadow the work of the Department of Environment, Food and Rural Affairs (DEFRA), described the objectives of the CAP as ‘an anachronism’, it reserved its strongest criticism for the UK government itself, which is described as naive and impatient.
Last year’s sugar reform has hit trouble and it’s a familiar story: too much sugar is still being produced in the EU. 2007 production plans show that quotas have only fallen by 2.2 million tonnes over the first two years, well below the 5-6 million tonne target.
The Commission has backed away from radical plans to reform Europe’s perennially troubled wine sector in the face of opposition from member states. The proposals put forward last June offered EU winemakers €2.4 billion over five years as an incentive to dig up their vines and concentrate on producing quality wines.
The satisfied look of cows in the Azores is no great surprise as they receive one of the biggest cattle subsidies in the EU, although still not enough for Portugal who voted against the last CAP reform on the issue of the fate of dairy cows in the Atlantic islands. After 39 years of a butter mountain under the CAP, it has finally melted away. When the Soviet Union still existed, stocks of ‘ageing’ butter used to be sold off to its consumers who were glad to get any butter at all.
The last remaining stocks (in the Czech Republic, Finland and Spain) have been sold off.… Read the rest
Seeing through the Commission’s proposal for reform of the fruit and vegetable regime could bring health benefits. With the exception of Greece and Italy no EU member state is currently meeting the World Health Organisation’s recommended consumption rate of 400kg per day per capita. From the viewpoint of Commission officials, getting consumption up to the WHO minimum level would also provide a commercial answer to the sector’s marketing problems.
Today, in Brussels, the Commission is hosting a special day for European young farmers. The day is being billed as part of the consultation in the run-up to the CAP health check, after which this blog is named. What is unlikely to be discussed at the meeting are the very real reasons why the current system of farm subsidies are overwhelmingly bad for young farmers and new farmers seeking to make a start in agriculture in the European Union.
It sounds like a Maoist slogan, but farm commissioner Mariann Fischer Boel set out a ‘one vision, two steps’ plan for the reform of the CAP at the recent Agra Europe conference in London. As she has made clear before, the forthcoming Health Check which will address the period up until 2013 is seen largely as a tidying up exercise rather than an opportunity for further fundamental reform. The Commission is currently preparing a Green Paper on the Health Check but this is not expected to be ready until after the summer.
In an uncharacteristically pro-CAP intervention for a British politician, Liberal Democrat economics spokesman Chris Huhne has attacked his Tory opposite number George Osborne’s recent description of the CAP as ‘unreformed’.
As the European Union gears up for the CAP Health Check in 2008, the United States is already deep in debate over the Farm Bill, which is due for renewal this year. Just as the CAP sets Europe’s farm policies, the Farm Bill (each one lasting for 5 years) defines agriculture policy for the US. And just like the CAP, the Farm Bill is hostage to the narrow producer interests that benefit directly from the policy: big, industrial agribusiness and farmers who monoculture the five big subsidized crops: corn, soya beans, wheat, rice and sugar. ‘Outsiders’ such as consumers, taxpayers, conservationists and those speaking up for farmers in poor developing countries rarely get much of a look in.… Read the rest