The distribution of direct payments in calendar year 2022

One of the striking proposals in the Commission’s CAP Regulation is the introduction of a much sharper degressivity in area-based income support payments starting with payments above €20,000 and with a ceiling of €100,000. It is thus appropriate that DG AGRI released its annual report on the distribution of CAP direct payments for the financial year 2023 just two days before the CAP proposal was announced as part of the 2028-2034 MFF package (in addition, the detailed figures are found in the Annex available here). It appears that the report was completed by October 2024. It is striking that the date of publication of these annual reports has been gradually slipping over time (the full set of reports with date of publication is available on the Commission web page on income support) which obviously limits their usefulness.

Although the report relates to the financial year 2023, I have deliberately titled this post as referring to the calendar year 2022 to emphasise that the figures refer to payments made to farmers in claim year (or calendar year) 2022.… Read the rest

Why farm numbers must continue to fall

Commissioner-designate Wojciechowski highlighted what he called the “shocking information” on the decline in the number of European farms in his opening statement during his hearing in front of the AGRI Committee in the European Parliament earlier this week.

I presented the shocking information – shocking at least for some audiences – that during one decade, from 2005 to 2015, we lost four million farms in the European Union. The number of farms was almost 15 million, and after a decade there were fewer than 11 million farms. If we lose four million per decade, it is 400 000 per year. More than 30 000 per month. More than 1 000 per day. Our debate is scheduled to last three hours, which means that during this debate more than 100 European farmers will probably lose their farm and their job. For many of them it will be a tragic, shocking situation because it is not so easy to be a farmer today and then tomorrow to do something different – to be a taxi driver, for example.

Read the rest

Agriculture in the debate over Brexit

The European Council meets this Thursday in the hope that it will agree on a package of measures that will satisfy the UK’s demand for a renegotiation of its relationship with the EU. The details of the package and the main stumbling blocks are spelled out in the Council President Donald Tusk’s invitation to leaders to the Council meeting. The mood music leading up to the summit meeting is constantly changing. Whether this is a careful choreography to persuade voters back home that what will be achieved is a significant deal, or whether the continuing objections will derail a deal will be clearer by the end of this week. If a deal is reached, there is heavy speculation that the referendum date itself could be 23 June.

UK opinion as captured by opinion polling is shown in the chart below. If we mark the official start of the Brexit debate as the date of the UK Prime Minister’s famous Bloomberg speech on 23 January 2013 (still one of the best arguments in favour of the European Union that I have read), those in favour of Leaving were reportedly ahead at that stage.… Read the rest