Tag: direct payments

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Following the negotiations on the Direct Payments Regulation

COMAGRI will vote on compromise amendments to the Commission’s proposals for the four main CAP regulations this week. To understand the dynamics of the legislative process, it is helpful to be able to see the positions of the main institutions side-by-side. I have constructed a four-column spreadsheet table showing, article by article, the positions of the main actors as we know them to date for the direct payments regulation (download the file to your computer by clicking File, Download in the upper left of the Google Drive document when the link opens). The four columns show, for each article:

    The Commission’s proposal October 2011
    The COMAGRI rapporteur’s amendments May 2012
    The Council’s position as summarised in the Cyprus Presidency document December 2012
    The COMAGRI compromise amendments Jan 2013

I have only had the time to construct this table for the direct payments regulation so far.… Read the rest

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COMAGRI draft report on direct payments regulation

The draft reports by the COMAGRI rapporteurs on the four main CAP regulations were published last week. They include reports on the future of direct payments and support for rural development by Mr Luis Manuel Capoulas Santos, the report on the single common market organisation by Mr Michel Dantin, and the report on the common provisions for financing, management and monitoring of the CAP by Mr Giovanni La Via.
In addition, a number of the other EP committees have prepared draft opinions on the proposals – see the Environment Committee here, but also the Development Committee, the Budget Committee and the Regional Development Committee.… Read the rest

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Basic Direct Payments for EU Farmers: The Proposal of the Commission of the EU

Direct payments are the most important budget outlay

EU expenditure on Agriculture and Rural Development makes up a high share of total EU expenditure. The share was – according to official information – 41 per cent of total EU expenditure in 2011 and amounted to €55.269 billion. The position ‘Direct Payments’ was the most important budget outlay during the present Financial Framework with €39.771 billion in 2011; it made up a share of 72 per cent of the total expenditure on Agriculture and Rural Development.

This budget item came into existence in 1993 as the Council of Agricultural Ministers had decided in 1992 to reduce the intervention prices for grain by about 33 per cent and to also reduce the support price for oilseeds.… Read the rest

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The political feasibility of CAP redistribution

A novel feature of the current round of CAP reform negotiations is that it explicitly aims to redistribute budget resources between member states. One of the reasons for the success of the 2003 Fischler Mid-Term Review and the 2008 Fischer Boel Health Check was that they left the pre-existing distribution of payments across member states more or less intact.

The demand from the new member states for greater convergence in the value of the direct payment per entitlement (or eligible hectare) in the current CAP negotiations means that redistribution is now firmly on the reform agenda. But it also makes reaching agreement much more difficult.… Read the rest

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The future for national envelopes and Member State flexibility in Pillar 1

A feature of the move towards decoupled direct payments in the EU since the Fischler 2003 reform has been greater flexibility for Members States in the management of these payments. This can be seen in various ways: the different options on which to base the Single Payment Scheme; different cross compliance requirements including definition of Good Agricultural and Environmental Conditions; different possibilities for modulating payments between Pillar 1 and Pillar 2; and provisions for ‘national envelopes’ and for the retention of partial coupling.

In this post I examine the future for national envelopes and partial coupling in the light of the Commission’s draft regulation on direct payments after 2013.… Read the rest