The European Commission has today unveiled its proposals for reforms to the Common Agricultural Policy from 2014. The EC plans for the CAP, which last year accounted for 47 per cent of the entire EU budget, have come under fire from across the political and industrial spectrum. image expired

The key points addressed in the CAP reforms aim, according to the Commission, to ensure that post-2013 CAP is more straight-forward, supports farmers more equally across the Union and paves the way for a gradual transfer from intensive to more sustainable agricultural operations. Many of the proposals were revealed in leaks over the months leading up to the publishing date.

European Commission’s key reforms

Though there is little change in budget for the CAP, the Commission envisage serious shifts in allocation. The principal proposals will see efforts being made to ensure support payments are only received by active farmers rather than landowners who currently collect subsidies without actively cultivating the land in many cases.

Payments will also reduce degressively from 150 000 Euros to the maximum payment of €300 000 per farm per year, though the commission assured the number of employees on a farm would be taken into account. Upon publishing the plans the EC said these measures were to ensure support is distributed "more fairly among farmers, regions and Member States."

There are also proposals to promote the creation of insurance and mutual funds to deal with price volatility which can affect farmers, as well as the introduction of the hotly-debated greening measures; 30 per cent of support payments will be dependent on farmers complying with guidelines on crop diversification, maintenance of permanent pasture, preservation of ecological reserves and landscapes amongst other environmental conditions. Under the new guidelines farmers will have to leave 7 per cent of their farmland fallow in order to qualify for payment.

The commission also proposes to double the agronomy research and innovation budget and to take steps in order to ensure that research results are translated into practice by means of a new partnership for innovation, which it says will furnish farmers with the knowledge they need to deal with the effects of climate change and maintain world-class standards.

Furthermore, the EC proposed to act on ensuring better balance in the food chain, which dairy farmers in particular, who are at the mercy of processors and retailers across the bloc, will welcome. In a statement upon the release of the proposals, an EC spokesperson said, "Agriculture is at the base of the food chain, but it is highly fragmented and unstructured. To strengthen the position of farmers, the Commission proposes to support producer organisations and inter-branch organisations. "

It intends to develop shorter supply chains between producers and consumers, as research has shown too many intermediaries result in wastage and distort influence. Sugar quotas, which the commission said have lost their relevance, will not be extended beyond 2015.

Support will also be available for young farmers; as two thirds of Europe’s farmers are over 55, measures will be undertaken to support job creation and encourage the younger generation to enter the agricultural sector. The Commission proposed start-up assistance accessible to farmers under 40 during the first five years of their project.

Dacian Cioloş, Commissioner for Agriculture and Rural Development, who drew up the plans today said, "The European Commission is proposing a new partnership between Europe and its farmers in order to meet the challenges of food security, sustainable use of natural resources and growth.

"The next decades will be crucial for laying the foundations of a strong agricultural sector that can cope with climate change and international competition while meeting the expectations of the citizen. Europe needs its farmers. Farmers need Europe's support. The Common Agricultural Policy is what feeds us, it's the future of more than half of our territory. "

Widespread disillusionment at ‘missed opportunity’

Green MEPs were among the first to react strongly to the proposals, which they see as having failed to stand up to lobbying from business interests, to the detriment of the majority of farmers. Comments from Green politicians come after serious criticisms were levelled at the commission by NGOs and environmental organisations in response to leaks detailing proposals.

French MEP and renowned farming activist José Bové, who is also Green co-chair of the European Parliament’s agriculture committee, castigated the EC over the reforms which, he said, appeared promising at face value but had in fact been gutted to suit powerful lobbyists.image expired

Bové vociferated, "While earlier drafts were not revolutionary, at least they pointed in the right direction. Today's proposals have been stripped of all ambition and as such, will fail to provide the basis to properly reform the CAP and ensure it is a tool to promote sustainable agriculture and fair incomes for farmers. What is left has been tailored to the demands of the agro-industry lobby at the behest of their cheerleaders in the Council and the European Parliament."

Green MPs said that the threshold beyond which direct payments should become 'degressive' is set far too high; as such they say the CAP will continue to benefit large farmers and agro-industrial complexes, despite the Commission’s professed intentions.

German Green MEP Martin Häusling said, "Sustainable farming and food systems are crucial for tackling the challenges agriculture is now confronted with, like climate change, loss of biodiversity and water and soil protection. Reform without greening has no meaning - and those seeking to make this reform meaningless are misrepresenting their constituents by bowing to the interests of the few not the needs of the many."

However, the he most prosaic condemnation came from Socialist MEP Luis Capoulas Santos, who will be leading the negotiation on direct payments and rural development for the European Parliament. He declared, "This proposal is good from afar, but far from good. There is too much bureaucracy, less money and not enough justice."

Conservatives have also criticised the policy proposals for failing to reduce spending on CAP. European conservatives have described the plans as "a massive wasted opportunity", sentiments which were echoed by Defra chief Caroline Spelman, who said the UK government would continue to push for its desired reforms as the future of cap is debated over the next two years.

Scottish MEP George Lyon welcomed aspects of the reform, He commented on Ciolos’ proposals, "There are plus points, as he has taken action to stamp out the slipper brigade, help young farmers and target more support at producers in LFA [less favoured] areas who really need it."

However, Lyons too dismissed the much-hyped ‘greening measures as so much "greenwash". He concluded, "On the key test of whether this will incentivise and develop a more sustainable, more competitive, more carbon efficient agriculture the whole package falls dreadfully short."