The CAP after 2020 - Inra
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the CAP after 2020
MODERNISING & SIMPLIFYING THE COMMON AGRICULTURAL POLICY
TARGETED, FLEXIBLE, EFFECTIVE
A STRONG BUDGET
FOR A STRONG CAP
Benjamin Van Doorslaer
C.2 Analysis and Outlook
Directorate General for Agriculture and Rural Development
European Commission
#FutureofCAP• THE FUTURE CAP PRIORITIES AT A GLANCE
Simplification and modernisation of the CAP
Support to the development of a knowledge-based agriculture
Higher ambitions on environment and climate
A fairer and more effective distribution of support across MS and farmers
Agriculture and
2 Rural Development• WHY: LESSONS LEARNT FROM ASSESING THE CAP
Analysis and wide public consultation confirm major achievements of the CAP…
• Increase in EU competitiveness turned the EU into a net agro-food value-added exporter
• Positive impact on jobs, growth and poverty reduction spread in all EU rural areas
• Relative income stability within a very volatile farm-income and commodity-price environment
…but analysis and public opinion also reveal shortcomings to be addressed…
• Despite progress, the environmental performance of EU agriculture requires improvement
• Productivity growth is mainly driven by labour outflow and less by R&I or investment
• Equity, safety net and simplicity questions persist despite CAP efforts to address them
…in a changing broader environment within which the CAP operates
• Expectations about the level of agricultural and commodity prices changed from CAP post-2013
• The world trade environment has shifted from multilateral to bilateral/regional agreements
• New climate change, environmental and sustainability commitments stem from COP21 and SDGs
Agriculture and
3 Rural DevelopmentHOW MUCH: CAP BUDGET IN PERSPECTIVE (current prices)
in billion EUR as share of GDP
80 0,8%
EU-10 EU-12 EU-15 EU-25 EU-27 EU-28 EU-27
70 0,7%
60 0,6%
50 0,5%
40 0,4%
30 0,3%
20 0,2%
10 0,1%
0 0,0%
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
Export subsidies Other market measures Coupled support
Decoupled support of which direct payments of which green payments
Rural development - environment/climate Rural development - other measures Pillar I post-2020 proposal
Pillar II post-2020 proposal Current CAP excl UK CAP as share of EU GDP
Source: EC-DG AGRI.
Note: Budget figures are actual until budget year 2016, programmed from 2017-2020, and based on the MFF proposal for 2021-2027
http://www.europarl.europa.eu/RegData/etudes/BRIE/2018/621864/EPRS_BRI(2018)621864_EN.pdf.
Agriculture and
4 Rural DevelopmentWORLDWIDE EXTREME WEATHER EVENTS
Natural catastrophes worldwide - number of events
800
700
600
500
400
300
200
100
0
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Meteorological events Hydrological events Climatological events
Meteorological events: Tropical storm, extra-tropical storm, convective storm, local storm
Hydrological events: Flood, mass movement
Climatological events: Extreme temperature, drought, forest fire
Source: © 2017 Münchener Rückversicherungs-Gesellschaft,
Geo Risks Research, NatCatService (January 2017)
Agriculture and
5 Rural DevelopmentTHE NEED TO DO MORE ON CLIMATE AND ENVIRONMENT
Reduction in environmental impact indicators (2010=100)
150
140
130
120
110
100
90
80
70
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Ammonia emissions from agriculture GHG emissions from agriculture Gross nitrogen balance
Source: Eurostat.
Agriculture and
6 Rural Development• WHAT FOR: PRIORITIES OF THE FUTURE CAP
Strengthening environment and climate action
• EU sets wide objectives and list of available types of intervention on air, water, soil, biodiversity
• MS Strategic plans define the pertinent actions to meet EU objectives based on MS specific needs
• Farmers apply for schemes and comply with stringent environmental criteria defined by EU/MS
Better targeting of support
• DPs provide an important safety net for farm income lagging behind the rest of the economy
• Better targeting of income support improved with internal convergence and redistributive payments
• Fairer distribution is improved with degressive cuts above 60 000 € and capping at 100 000 €
Relying more on knowledge, innovation and technology
• A better link of what we know to what we grow would promote the use of smart agriculture
• Anticipating future knowledge needs promoted with more funding for research to address them
• Exchange and knowledge transfer relies more on improved functioning of the FAS/EIP Systems
Agriculture and
7 Rural DevelopmentTHE 9 COMMON OBJECTIVES
REBALANCE
INCREASE
POWER IN FOOD CHAIN
COMPETITIVENESS
ENSURE CLIMATE CHANGE
FAIR INCOME ACTION
THE 9
CA
OBJECTIVES
ENVIRONMENTA
L
CARE
RESPOND TO
CITIZENS'
P PRESERVE
LANDSCAPES
CONCERNS in &
terms of BIODIVERSITY
SUPPORT
FOOD & GENERATIONAL
HEALTH RENEWAL
VIBRANT
QUALITY
RURAL AREAS 8Improving water quality
Focus on N, modelled through Reduction in N-surplus per ha of UAA (relative to baseline),
reduction targets of the gross nutrient Most constraining scenario
balance
Reduction targets fixed according to
actual surplus, lower targets if manure
trading takes place
Close to 4% N-surplus reduction
on average in the EU in the most
constraining scenario
Farmers adopt more N-efficient
technologies (like precision farming)
Significant reduction in mineral
fertiliser use (with 5% at EU level)
Source: JRC, CAPRI model
Agriculture and
9 Rural DevelopmentHOW: THE NEW DELIVERY MODEL OF THE CAP
ex. foster sustainable development and efficient
EU Specific objectives
management of natural resources (water, …)
EU Set of common Indicators ex. I.15 Improving water quality: Gross nutrient balance on
agricultural land
Broad types of interventions
Identification of needs in MS's CAP Plan
Tailor CAP interventions to their needs
MEMBER
STATES
Implementation / Progress towards targets
Agriculture and
10 Rural DevelopmentHOW: FOCUS ON PERFORMANCE
Multi-annual programming approach for the whole CAP
COMMON OBJECTIVES INDICATORS TYPES OF INTERVENTIONS
Annual Performance Clearance
Assurance Common Output Indicators
Linking expenditure to output
Annual Performance Review Common Result Indicators
Monitoring Checking progress towards targets
Policy Interim Evaluation
Common Impact Indicators
performance Assessing performance towards objectives
Agriculture and
11 Rural DevelopmentHOW: THE NEW GREEN ARCHITECTURE OF THE CAP 40% of
budget
climate
Farm relevant
Knowledge
advisory transfer Level of requirement Cooperation Innovation
services
Current architecture New architecture
Voluntary for
Climate & Climate &
farmers
Voluntary for
Environmental Eco‐schemes
farmers
environmental
measures in Pillar II in Pillar I measures in Pillar
(AECM, Forestry measures, II
investment measures… )
Mandato
farmers
(AECM, Forestry measures,
Greening
ry for
Mandatory for
(3 detailed obligations on crop diversification, New, enhanced conditionality
investment measures… )
farmers
permanent grassland and EFA) (on Climate/Env, 14 practices built upon EU minima
(climate change, water, soil, biodiversity and landscape)
for farmers
Mandatory
Cross‐compliance and requirements from Nitrates Directive, Water
(on Climate/Env, 7 GAEC standards (water, soil, carbon stock, landscape) Framework Directive and Natura 2000 Directives)
and requirements from Nitrates Directive and Natura 2000 Directives)
12• FOR WHOM: A FAIRER AND MORE TARGETED
DISTRIBUTION
Reduction of all direct payments above EUR 60 000 and capping at 100 000
taking into account salaries and labour costs
Complementary redistributive income support for sustainability
Additional amount per hectare, shift from bigger to smaller and medium-sized farms
Complementary income support for young farmers (min 2% of pilar 1 budget)
Convergence of income support within Member States:
no payment entitlement with a value < 75% of the average (by 2026 at latest)
maximum per entitlement
Convergence between Member States:
for all Member States with direct payments below 90% of the EU-27 average, the gap between their
current level and 90% of that average will be closed by half over 6 years
Agriculture and
13 Rural DevelopmentTHE CAP CYCLE: POTENTIAL RISKS
Administrative risks
• Inadequate administrative capacity
PERFORMANCE Implementation issues
Market risks AND ASSURANCE • Insufficient quality of monitoring data
IMPLEMENTATION
• Un-level playing field between farmers
• Insufficient uptake of intervention
EVALUATION
Timing issues
POLICY
• Inadequate planning of data monitoring
Implementation issues • Timely
y evaluation results
• Uneven national requirements
• Insufficient use of innovative solutions
for checks and monitoring
• Insufficient performance
PLANNING
Administrative & timing issues
• Inappropriate capacity for planning Lack of vision
• Unfair treatment of CAP plans • Lack of support towards modernisation
• Delays in approval of CAP plans Inadequate strategy • Lack of ambition with regard to targets
• Imbalance between economic,
environmental and social dimensions
• Complex or incoherent strategy
• Inadequate targeting of beneficiaries
Agriculture and
14 Rural DevelopmentTHE CAP CYCLE: SAFEGUARDS
Suspension of payments
Performance bonus
Financial correction
EU audits
Action plan for remedial actions
PERFORMANCE Interim evaluations (CAP Plan)
AND ASSURANCE
IMPLEMENTATION
Interim evaluation and report EC
EVALUATION
Reduction in payments
Ex-post evaluations
POLICY
Annual review meetings
Conditionality
Monitoring committee meetings
CAP plan requirements
Performance reporting, review and No backsliding rule
assurance
PLANNING Budget earmarking
CAP plan approval
EU basic requirements
Stakeholder consultation Ex-ante evaluation
SWOT analysis
EC support
Agriculture and
15 Rural Development• A SIMPLER CAP
EU focus on results and performance of the policy
Simplification and reduction of administrative burden
stems from requirement of the CAP Strategic Plan
NEW OPPORTUNITIES
Design of a plan adapted to local needs
Streamline schemes in both pillars
Development of a more targeted framework
including for environment and climate-friendly practices
Rules defined much closer to their daily reality
No EU Commission’s audit on individual beneficiaries
FOR BENEFICIARIES Use of technologies for faster, slimmer and more automatic fulfilment of
administrative procedures
Access to impartial farm advice and assistance in applying for support
Less prescription from EU requirements
Stability in governance structures (Paying Agencies, Certification Bodies)
FOR ADMINISTRATIONS Stability in systems (IACS, LPIS)
Streamlining of reporting requirements
Agriculture and
16 Rural Development• A MODERN CAP
Huge potential to save time, money:
Development of an “area monitoring system” (i.e. a system based on systematic,
year-round remote observation of agricultural activities) with potential of replacing
classical control methods
PUSH FOR NEW
TECHNOLOGIES Geo-spatial application (GSA), a digital application that integrates GIS technology,
will continue to be the default method of submitting applications
Pre-fill of application with as much up-to-date and reliable information as possible
(e.g. data from the Land Parcel Identification System)
Beneficiaries will get access to improved farm advice
Farm advice will cover all requirements of the CAP strategic plan
including conditionality
Extensive list of new elements in farm advice
EXTENDED FARM ADVICE Rural development interventions, financial instruments and business
plans (included in CAP Plans), Clean Air Directive, National Emission
Ceiling Directive, Animal Health Law, Plan Health Law, Practices against
anti-microbial resistance, Risk management, Innovation support (with
European Innovation Partnerships), Development of digital technologies
Agriculture and
17 Rural DevelopmentA TENTATIVE OUTLOOK
2018 - 2019 Debate in the European Parliament and in the Council on the CAP proposals
Spring 2019 Possible agreement of the next MFF 2021-2027 by the Heads of States and Governments
Spring 2019 Possible adoption of the next CAP 2021-2027 by the co-legislators
May 2019 Elections of the European Parliament
Preparation of the CAP implementation
Possible entry into force of the new CAP
2021REPORTS AND MORE INFORMATION AVAILABLE AT:
MFF Material
https://ec.europa.eu/commission/publications/factsheets-long-term-budget-proposals_en
CAP legislative proposals
https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/future-common-agricultural-policy_en
Impact Assessment
https://ec.europa.eu/agriculture/policy-perspectives/impact-assessment/index_en.htm
https://ec.europa.eu/agriculture/consultations/cap-modernising/2017_en
Background AGRI material
https://ec.europa.eu/agriculture/index_en.htm
https://ec.europa.eu/agriculture/statistics_en
https://ec.europa.eu/agriculture/cap-indicators_en
Thank you for your attention!
Agriculture and
19 Rural Development• THE CAP IN THE MFF CONTEXT
Continuity within new EU priorities in a post-BREXIT MFF
• A 5% cut in CAP expenditure, but a more targeted approach to improve efficiency and performance
• The "C" in the CAP remains strong, implies a better sharing of responsibilities between EU and MS
• Better link to other policies (esp. environment, climate, research, health) improves mutual efficiency
Main changes in the CAP
• Stronger environmental/climate ambition with conditionality, echo-schemes and strategic plans
• Specifying the objectives that add EU value render the CAP more sustainable, simpler and modern
• Better targeting of support improves synergies between the economy and the environment
Main expected impact from changes
• Stronger reliance on research, knowledge transfer and digital economy to modernise CAP and sector
• A needs-based approach increases subsidiarity and flexibility to promote common EU objectives
• The CAP shift from compliance to performance parallels MFF shift towards more focus on incentives
Agriculture and
20 Rural DevelopmentYou can also read