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CAP reform proposals

CAP reform proposals






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    CAP reform proposals CAP reform proposals Presentation Transcript

    • The Common Agricultural Policy 2014-2020: proposals from the European Commission David Barnes/Drew Sloan Dec 2011 - Jan 2012
    • Purpose of these meetings
      • To inform you about the European proposals for the future CAP
      • So that you can begin to think about preparing for it
      • To set out Scottish Government’s views at this stage
      • To hear your informal views and comments
      • And to enable you to give us well-informed formal feedback via our consultation exercises.
    • Caveats
      • Some things still need clarification from the Commission.
      • Everything in the proposals is subject to change in the negotiations.
      • The consultation exercise is designed to inform SG’s final position, so what we set out tonight is just an interim position.
      • How the new CAP will be implemented in Scotland will be the subject of a separate consultation process nearer the time.
    • What tonight will cover
      • Introduction/background:
        • Procedure
        • Budget
        • Timetable
      • The content of the European proposals:
        • Pillar 1
        • Pillar 2
        • Issues common to both pillars
      • Next steps
      • Q&A
    • Introduction
      • The EU is negotiating its budget and policies for 2014-2020.
      • Three EU institutions are involved:
        • European Commission
        • Council of Ministers
        • European Parliament
      • Only the European Commission can table a proposal: focus tonight is on the Commission’s proposals for the CAP.
      • Council of Ministers and European Parliament then negotiate and decide.
    • CAP Budget and CAP rules will be decided separately
      • CAP budget will be considered alongside the rest of EU budget, by Finance Ministers and Heads of Government.
      • CAP rules will be negotiated and decided by Agriculture Ministers and the European Parliament.
    • CAP budget
      • Commission proposal is roughly a “flat cash” budget for CAP 2014-2020, which means a decline in value in real terms (no uplift for inflation).
      • Commission proposes redistribution of the budget, to boost Pillar 1 payments in new Member States and to make Pillar 2 fairer.
    • Pillar 1 Direct Payments budget
      • Commission proposal for “convergence” to help new Member States: those below 90% of EU average €/ha get an uplift.
      • Proposed UK Direct Payments ceiling is slightly down.
      • Within-UK allocations not yet known.
      • Scotland’s average €/ha is as low as some new Member States.
    • Pillar 2 Rural Development budget
      • Commission proposes to use more objective criteria than in the past to allocate Member State shares.
      • UK allocation not yet known.
      • Criteria should lead to bigger percentage shares of the EU RD budget for UK and Scotland.
      • Total RD budget in Scotland 2014-2020 will also depend on how big the EU RD budget is, and how much national co-financing money is available.
    • CAP rules
      • What’s happened so far:
      • 2009-2010 gathering ideas - Commission consultation exercise, Council discussions, Lyon report.
      • Pack Inquiry into future farm support.
      • Nov 2010 Commission options paper. Council discussions, Dess report.
      • Oct 2011 Commission issues formal proposals designed to meet its objectives.
    • Two Pillars, four regulations
      • Pillar 1
      • Direct Payments
      • Market measures (“Single CMO”)
      • Pillar 2
      • Rural Development (“RDR”)
      Financing and monitoring (“Horizontal” regulation) EU implementing rules (“Delegated Acts”)
    • Commission’s ideal timetable
      • CAP proposals issue 12 October 2011.
      • EU and CAP budgets decided summer 2012.
      • CAP regulations finalised end 2012 or early 2013.
      • EU-level and Member State-level implementing rules and legislation adopted during 2013.
      • New regime 1 Jan 2014.
    • If the timetable slips
      • Pillar 1 Direct Payments and Market Measures – status quo could essentially continue until the new system begins, Eg on 1 Jan 2015.
      • Pillar 2 Rural Development Programmes – risk of a gap between current programmes and new ones unless “bridging” arrangements are agreed.
    • Content of the EU proposals
      • Pillar 1 Direct Payments
      • Next slides from the Commission’s own presentation:
    • Who would have entitlements under the proposals ?
      • All current entitlements would expire.
      • Entitlements under the new system would be allocated to:
        • farmers who are actively farming in 2014 and submit a claim, and who activated at least one SFP entitlement in 2011.
        • and people eligible for the National Reserve.
    • National Reserve
      • Funded by one-off deduction of up to 3% of Scotland’s total Direct Payments.
      • Priority given to farmers under 40 who started farming in the last 5 years. If necessary to meet this demand, the 3% can be increased.
    • Who is an active farmer ?
      • Direct Payments must be at least 5% of non-agricultural income (unless Direct Payments <€5,000).
      • Must grow crops/keep livestock; or keep the land in condition suitable for grazing or cultivation.
      • Member States/regions can impose minimum activity on land which remains in good condition even without management.
      • Minimum claim size and hectarage.
    • 1. Basic Payment
      • What’s left after the various deductions have been made.
      • Can be regionalised, on objective criteria.
      • In 2014, 40% of the Basic Payment ceiling is area-based. Remainder shared out according to historic SFP.
      • By 2019, must be 100% area-based and all entitlements within a region must be equal.
      • Transition profile fixed in advance, in 2013.
    • 2. Greening
      • If >3ha of cropping, minimum 3 crops each covering >5% and <70%.
      • Permanent grassland (>5yrs) must be maintained as declared in 2014.
      • Each holding must have Ecological Focus Area (buffer strips, landscape features, fallow etc) equal to 7% of arable and temporary grass area.
      • Organic farming qualifies automatically.
    • 3. Young farmer top-up
      • Compulsory for Member States. 25% top-up per hectare, up to a limit on hectares.
      • Limit must be set between 25ha and average holding size in UK (54ha).
      • Under 40, and max. 5 years after establishment.
      • Up to 2% of Scotland’s total Direct Payments.
    • 4. Coupled support
      • Voluntary for Member States/regions.
      • Replaces Article 68 and pre-SFP schemes (SCPS, SAPS etc) which some member States are still using.
      • Limited to fixed no. animals and to payment rates necessary to maintain current production.
      • Up to 5% of total Direct Payments, except for Member States currently using >5%.
    • 5. Area of Natural Constraint (ANC) top-up
      • ANC = new designation for LFA
      • Top-up voluntary for Member States/regions.
      • Up to 5% of total Direct Payments.
      • Payable on all or part of ANC, according to objective criteria.
      • Must be deducted from Pillar 2 ANC support (LFASS).
    • Progressive reductions/capping
      • Payments reduced by:
      • 20% from €150,000 to €200,000
      • 40% from €200,000 to €250,000
      • 70% from €250,000 to €300,000
      • 100% above €300,000
      • Salaries/employment costs are deducted.
      • Greening payments are exempt.
      • Proceeds used in Pillar 2 for innovation.
    • Small farmer scheme
      • Compulsory for Member States, optional for the farmer (one-off decision in 2014).
      • Up to 10% of total Direct Payments.
      • Fixed payment, between €500 and €1,000.
      • Replaces other payments inc. coupled payments.
      • Minimum no. hectares.
      • Exempt from greening and from cross-compliance penalties.
    • Pillar 1 Market measures
      • EU has moved from permanent intervention in the market to safety-net only.
      • Provision for emergency measures in the event of extreme market disruption.
      • Milk quotas already being phased out, sugar quotas proposed to be phased out.
    • Pillar 2 Rural Development: current rules
      • 7-year programmes approved by Commission.
      • Co-financed by EU and domestic money.
      • Axis 1 farm business development (capital, skills).
      • Axis 2 agri-environment (capital and annual), LFA, woodlands, animal welfare.
      • Axis 3 diversification and community projects.
      • LEADER.
    • Pillar 2 Rural Development: proposals for 2014-2020
      • Evolution not revolution.
      • Common Strategic Framework – joined-up approach between RD, EU Structural Funds and EU Fisheries Fund.
      • No Axes, no minimum percentages except 25% of EU funds on environment (inc. organic and LFA).
      • Possibility for sub-programmes within RDPs.
    • Less Favoured Areas
      • Re-titled Areas of Natural Constraint (ANC). Defined as:
      • Mountain areas, or
      • Other areas meeting biophysical criteria (now defined by EU not Member State), or
      • Other areas facing specific constraints (eg islands), up to 10% of total area.
      • No special budget for each category, but different maximum rates.
    • “ Other areas” biophysical criteria
      • Temperature, soil quality, slope, wetness or dryness.
      • Close to criteria used already to define LFA in Scotland, but less fine-grained: applies to whole ward or parish if 66% of area meets the criteria.
    • ANC payments
      • Costs incurred or income foregone as a result of natural constraints, compared with non-constrained areas.
      • Take account of Pillar 1 ANC top-up.
      • Minimum €25/ha, maximum €250/ha (€300/ha for Mountain), degressive above a threshold.
      • Transition arrangements for farmers excluded by the new criteria.
    • Common rules to Pillars 1 and 2
      • Cross-compliance
      • Rules to be followed by Member States (inspections, audit, financial reporting etc): not covered tonight.
    • Cross-compliance
      • As at present, two elements:
      • Statutory Management Requirements (SMRs) and
      • Good Agricultural and Environmental Condition (GAEC).
    • Statutory Management Requirements (SMRs)
      • EU legislation on environment, animal and plant health, public health, animal welfare, which farmers should be complying with anyway.
      • Down from 18 to 13 (15 when Water Framework Directive and Sustainable Use of Pesticides Directive have been implemented). Some animal health SMRs removed.
    • Good Agricultural and Environmental Condition (GAEC)
      • 8 requirements (previously 8 compulsory + 6 optional).
      • Retention of permanent pasture removed from GAEC: moved to greening.
      • Minimum stocking density removed from GAEC: moved to agricultural activity definition.
      • New GAEC: “Protection of wetland and carbon rich soils including a ban on first ploughing”
    • Cross-compliance penalties
      • Take account of severity, extent and timescale. As at present:
      • Penalty can be waived if “minor” non-compliance (but not if risk to public or animal health).
      • Negligence: up to 5%, or 15% if repeated.
      • Intentional: 20% to 100%.
      • Detailed rules set by Commission.
    • Next steps: Scotland
      • Consultation on Pillar 1, Dec to Feb.
      • Already consulted widely on Direct Payments for Pack Inquiry, and we need rapid information on stakeholder views. Questionnaire on SG website, with hard copy alternative.
      • Pillar 2, separate approach, including links with Common Strategic Framework.
      • These consultations are to inform the negotiating position. Separate exercises later to decide how to implement.
    • Commission proposal Parliament 1st reading Council 1st reading Parliament 2nd reading Council 2nd reading Conciliation procedure NEXT STEPS: EU By end-2012 or early 2013 ??!
      • Then:
      • EU implementing rules
      • Local implementation decisions.
      • Local implementation.
      • Questions