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HELM TALKS: FARMING Lecture 6

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Dieter Helm's lecture series on farming.

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HELM TALKS: FARMING Lecture 6

  1. 1. THEMES • Farming for the Future and ELMS papers • The 3 tier structure • Farm payments and negotiated deals • Auctions alternatives • The CAP mark 2 or a public goods approach?
  2. 2. THE PUBLICATIONS • 2 docs not 1 – addressing two different audiences • 2 horse-approach; 2 methodologies • Food security, food production & food subsidies AND • Greening the landscape
  3. 3. THE THREE TIER STRUCTURE • CAP Pillar 1 and CAP Pillar 2 to Tier 1, and Tier 2 and Tier 3 • Tier 1 vs. the single farm payment in CAP Pillar 1 • Low enforcement – like cross compliance tier 1 package • Tier 1 could end up like CAP Pillar 1 • Tier 2 + 3: Tier 2 = local; Tier 3= national
  4. 4. DEALS AND PACKAGES VS. AUCTIONS • The negotiated farm-by-farm approach is the best route for capture by both farmers and the existing institutions • Negotiation is in the interests of NE, RPA and EA • Auctions minimise capture & get value-for-money
  5. 5. AUCTIONS • Auctions minimise costs and force farmers to competitively bid for a fixed subsidy • Auctions integrate other revenue streams • Auctions allow catchments to “buy” spatial land planning from the farms • Digitalisation, natural capital baselines, satellite data • Net zero carbon comes into play – other revenue sources
  6. 6. CAP MARK 2 OR A GENUINE REVOLUTION? • Most revolutions go through phases and end up as evolution • Initial shocks – then back to modified ex ante system • Public goods model determined on a farm-by-farm subsidies • The CAP going in the same direction • NFU fights its corner, high on the political agenda

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