A non-exhaustive list of pertinent Common Agricultural Policy questions. Presentation by Tassos Haniotis, Director of Strategy and Policy Analysis, DG Agriculture, European Commission. Presented in 'The Economics and Politics of the CAP after 2020' panel of the very successful Congress of the European Association of Agricultural Economists: http://www.eaae2017.it/congress.

1. TOWARDS SUSTAINABLE AGRI-FOOD SYSTEMS:
B A L A N C I N G B E T W E E N M A R K E T S A N D S O C I E T Y
XV EAAE Congress | August 29th – September 1st 2017
CAP challenges and dilemmas
A non-exhaustive list of pertinent policy questions
Tassos Haniotis
DG AGRI, European Commission

2. XV EAAE Congress
Addressing the need to modernise the CAP
Presentation Title 1
The new challenge: the rapidly changing post-reform environment
A new, more uncertain market environment, with strong external influences
Increased tension between the economic and the environmental sustainability of agriculture
New international agreements (COP21) or prospects from trade negotiations
The window of opportunity: from CAP criticism to MFF realities
Focus on performance allows the CAP bring both failures and achievements to the forefront
Focus on climate change pushes towards an integrated land and livestock management approach
Drivers of the dairy crisis point to evidence of persistent market pressures on agriculture
The need for a new CAP narrative for a single, better integrated policy
CAP as provider of safe, high quality food better reflecting consumers trends and preferences
CAP as the EU-wide avenue of bringing together farming, environment and climate action
CAP as the arbitrator for a positive net jobs balance in rural areas and in the food chain

3. Greening raised questions on the link of its layers…
Cross compliance
Question: Only regulatory elements included?
2nd layer of agri-environmental measures
Question: Which criteria to link to 1st layer?
1st layer of agri-environmental measures
Question: Conditional or not?
Control
Results
Performance
SIMPLIFICATION
MODERNISATION
Research
Innovation
Advice
3

4. …that need an answer with a better distinction of tasks
Farm level
Free choice of best practices from MS list?
Monitoring of performance and/or compliance of practices?
How to use of advice for farm feedback and improvements?
EU value-added
Which targets on climate, soil, air, water, biodiversity?
Which global list of recognised best practices?
How to use evolving scientific knowledge as basis for EU-wide challenges?
MS/regional level
MS and/or regionalised relevant list of AECMs?
Simpler legislation reflecting public goods targets?
Could control incentivise the use of new technologies?
Control
Results
Performance
Research
Innovation
Advice
4

5. Better targeting support for private and public goods
Cross-compliance
Presently, limited number of regulatory elements
Is it possible to enhance with updated regulatory priorities?
Regionalised Basic Payment Scheme
National or regional average rate?
MS choice of economic/agronomic criteria?
1st layer of best practice measures
Flexible choice of MS from EU-wide list of best practices?
Simplified and adapted control with use of modern technologies?
Free choice of best practice at farm level ?
Challenge:
Strengthening
the joint
delivery of
private
and public
goods
Optional choice of
Income Stabilisation Tool
Voluntary Agro-Environmental
and Climate Measures
Private
Goods
Public
Goods
Policy response:
better targeting
of soil, air, water
and biodiversity
for the full
budget period
based on
regional
challenges
Region1 Region2 Region3 Region4
5

6. Investing in a modern farming sector
Accompany the shift to new financial instruments
address access to land and capital for young farmers
better link new financial instruments to farm assets
increase job attractiveness for younger generation
Prioritise knowledge-based climate change action
reliance on technological transformation of farming
modernisation of the sector to address new challenges
simplification of support and control mechanisms
Better link of research/innovation/advice
incentives to recognise risk-taking nature of farming
encouragement of feedback between advice and farm practices
address knowledge gap between farmers
Challenge:
need for
generational
renewal
of human
and
physical
capital
Addressing the
sectorial/horizontal dimension
of growth and jobs
Addressing the
territorial dimension
of growth and jobs
CAP funding What link to CSF?
Policy response:
farm sector
renewal
based on
Knowledge
and
innovation
aiming to
address
sustainability
6

7. XV EAAE Congress
More information on Reports and data at:
Presentation Title 1
https://ec.europa.eu/agriculture/index_en.htm
https://ec.europa.eu/agriculture/policy-perspectives/index_en.htm
https://ec.europa.eu/agriculture/policy-perspectives/impact-assessment/index_en.htm
https://ec.europa.eu/agriculture/markets-and-prices/index_en.htm
https://ec.europa.eu/agriculture/events/2016-outlook-conference_en
https://ec.europa.eu/agriculture/statistics_en
https://ec.europa.eu/agriculture/statistics/facts-and-fugures en
https://ec.europa.eu/agriculture/cap-indicators_en
https://ec.europa.eu/agriculture/consultations/cap-modernising/2017_en
Thank you for your attention!