COMAGRI draft report on rural development

As noted in a previous post, the draft reports by the COMAGRI rapporteurs on the four main CAP regulations were published last week. They include the 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. This post summarises the main changes proposed in the Capoulas Santos draft report on support for rural development after 2013.
Investments in physical assets. The draft report advocates that the provision in the current regulation providing for support for complying with new Community standards in the fields of environmental protection, public health, animal and plant health, animal welfare and occupational safety should be maintained, but limited to support of specific investments undertaken by farmers.… Read the rest

The greying of Europe’s farmers

Problems in the generational transfer of farms have been a focus of EU agricultural structures policy since the 1990s and in individual member states for an even longer period. Europe’s farmers are getting older, and the shortage of ‘new blood’ entering the industry is frequently seen as a problem requiring a policy response to correct.

The ageing of the agricultural population results from a combination of two things: a reduced rate of entry by new young recruits, and a reduced rate of retirement or exit by older farmers. This is taking place in the context of a long term reduction in the agricultural labour force in EU countries.

There is no doubt that the average age of farmers is increasing steadily. Unfortunately, the age of farm holder tabulations from the 2010 Agricultural Census have not yet been released by Eurostat, so the latest data we have are still from 2007. In 2007, 31% of holders of agricultural holdings in the EU-15 were 65 or older (28% in 1997 and 24% in 1990).… Read the rest

The greying of Europe's farmers

Problems in the generational transfer of farms have been a focus of EU agricultural structures policy since the 1990s and in individual member states for an even longer period. Europe’s farmers are getting older, and the shortage of ‘new blood’ entering the industry is frequently seen as a problem requiring a policy response to correct.
The ageing of the agricultural population results from a combination of two things: a reduced rate of entry by new young recruits, and a reduced rate of retirement or exit by older farmers. This is taking place in the context of a long term reduction in the agricultural labour force in EU countries.
There is no doubt that the average age of farmers is increasing steadily. Unfortunately, the age of farm holder tabulations from the 2010 Agricultural Census have not yet been released by Eurostat, so the latest data we have are still from 2007. In 2007, 31% of holders of agricultural holdings in the EU-15 were 65 or older (28% in 1997 and 24% in 1990).… Read the rest

The future role for the European Innovation Partnership for agricultural productivity and sustainability

One of the new initiatives to be announced by the Commission when it publishes its legislative proposals for the CAP post 2013 on Wednesday 12 October next will be the European Innovation Partnership (EIP) for agricultural productivity and sustainability. The Commission attaches great importance to this instrument to address lagging productivity growth in agriculture and to contribute to increased innovation.

To date, there is relatively little information on how this new instrument would work and what it will mean. The Commission is still in the process of internal reflection to define the objectives and governance of the EIP. However, some light is thrown on the Commission’s thinking in the evidence of Commissioners Ciolos and Geoghegan-Quinn to a recent UK House of Lords inquiry into Innovation in EU agriculture.

The emphasis in the new tool is very much on overcoming perceived bottlenecks to getting research results adopted on the ground. According to the Commission’s analysis, the main problem is the insufficient information flow and missing links between different actors (farmers, advisers, enterprises, and researchers).… Read the rest

EU could do better on environmental farming

Millions of pounds of taxpayers’ money intended for environmental projects is instead being used to prop up damaging farmning practices across Europe, according to a report Could Do Better compiled for the Royal Society for the Protection of Birds by Birdlife International. The report highlights some of the positive work being done in EU member states with CAP funding which is helping farmers create and protect habitats for wildlife. … Read the rest

Farmers queue overnight for subsidies

It’s not uncommon to see reports of people queueing up all night for the latest iPhone, the next Star Wars movie or tickets to watch tennis at Wimbledon. But as I write, farmers in Northern Ireland are queueing outside for farm subsidies. The government in Northern Ireland has decided to hand out farm subsidies ‘on a first come first served’ basis. The decision was taken because this particular funding package is worth just £6 million and is capped at £5,000 per application so only 1,200 farmers stand to benefit. Farmers are to be sleeping out in the cold to ensure they get a good place in the line. … Read the rest

Commission perspectives on agriculture and rural development

For most of its life, DG Agriculture has been concerned with managing agricultural markets, increasing farm productivity and guaranteeing European farmers a good income. In the 1990s, under the leadership of Commissioner Franz Fischler, it began paying more attention to broader economic development and environmental concerns in rural areas. This new interest led to the establishment of the Rural Development Reguation, a suite of new policy instruments (a ‘second pillar’ of the CAP) that comprised a set of mostly farm-based subsidy schemes designed to run alongside the traditional farming policies of the EU’s common market organisations (the ‘first pillar’ of the CAP). The Commission recently held a big rural development conference in Cyprus and this was accompanied by the publication of a short paper looking at the role of agriculture in rural economies across the EU and a large dataset of rural development statistics and indicators.… Read the rest

Buckwell expresses doubts about SFP and pillars

Agra Focus has been conducting a series of interviews on EU farm policy and one of the longest and most interesting to date is with Allan Buckwell. He is currently policy director with the (England and Wales) Country and Land Business Association, but is also chair of the policy committee run by the European Landowners Association. He was for many years a respected agricultural economics and policy academic at the now sadly diminished Wye College. Perhaps his most interesting role in policy terms was when he spent a year in DG Agri in 1995-6 and chaired a group which wrote a report on a Common Agricultural and Rural Policy for Europe.… Read the rest

Who gets what in EU rural development funds

In December 2006 European Union heads of government agreed a new Financial Regulation, the legal text that sets out the rules for the EU budget. The new Financial Regulation contains new requirements on the public disclosure of end beneficiaries of EU funds. The first significant fruits of the new budget transparency law are due by 30 September 2008, the deadline set out in the implementing regulations relating to expenditure under the Common Agricultural Policy. By this date each member state is obliged to provide a web-based search tool detailing all end beneficiaries of EU funds spent under rural development programmes between 1 January 2007 and 14 October 2007 (sometimes referred to as the second pillar of the CAP). … Read the rest

The great targeting debate

Czech agriculture minister Petr Gandalovic made an curious statement at the informal Agriculture Council meeting held earlier this week in the French Alps. Mr Gandalovic, who will assume the chairmanship of the Council under the Czech EU Presidency in the first half of 2009, told his colleagues:

“The more specific you make the policy, the more room you give to bureaucrats who make the decisions. Non-targeted payments give more power to farmers.”

In case it’s not clear, Mr Gandalovic was making the case against targeted payments. In doing so, perhaps inadvertently, he touched on a question that goes to the very heart of the debate about the future of the CAP: the extent to which the CAP’s 54 billion euros of annual public expenditure should be targeted on clearly defined objectives and measurable outcomes. It is a debate raging right now within DG Agriculture, a power struggle that is pitting CAP ‘modernisers’ who seek a greater role for the current rural development pillar against CAP ‘consolidators’ who defend the “Fischler settlement” and the current Commission Health Check agenda.… Read the rest