17/03/2011

CAP reform is clearly still a highly contentious issue as several ministers have speculated on different areas of focus for policy reforms. A number of varied propositions have been made over the future of the CAP as European farming leaders met in Brussels this week.

On Tuesday (15^th March) Caroline Spelman, while claiming she still stands by her initial desire to drastically reduce spending on the Common Agricultural Policy, has displayed something of a change of stance. During talks she relented on her call to end direct payments to farmers.

In January Spelman wrote to EU farm commissioner Dacian Ciolos calling for cuts to farm payments in line with other financial cuts being made across Europe, she claimed this would encourage resilience and competitiveness in the agricultural sector. Her proposals incurred the wrath of both the commissioner and Scottish Rural Affairs Secretary Richard Lockhead, who said her proposals “could devastate our agriculture sector and have a very detrimental knock-on impact on the rural economy as a whole.”

Agriculture committee chair Paulo De Castro expressed contentment with Spelman’s more moderate stance, saying her decision “makes it possible to find a common approach [to CAP reform]."

Pack warns of consequences of simplifying CAP

However, Scottish Governmental Advisor Brian Pack still has misgivings about the direction of CAP reform talks. Addressing industry and Government leaders in Edinburgh, Pack warned that moves to simplify CAP could put hopes of better targeted support for Scottish farmers in jeopardy.

Pack, who chaired an inquiry into the effects CAP reform would have in Scotland, said policy makers should remain conscious of the differences that exist between Britain’s devolved nations. Pack told those at the conference, “We have particular challenges in Scotland because 85 per cent of our land mass is officially designated as a less favoured area (LFA) while 83 per cent of England is non-LFA."

The Pack report last year rejected a flat-rate support system based on area and instead proposed a supplementary system of top-up payments linked to production. Reiterating these views, Pack said yesterday, "It is a big disappointment that the agricultural committee of the European Parliament is placing so much emphasis on simplifying the system. It will produce a different outcome to what we need in Scotland."

Rural Affairs Secretary Richard Lockhead also backed Pack’s findings, saying that without adequate consideration, Scotland’s ability to produce food and drink would be put “in jeopardy.” Pack expressed misgivings that an increased environmental focus of the common agricultural policy would only work if farming remained profitable, saying, "The environmental and public goods - the 'greening' of the CAP - which society is demanding will only be delivered if farming is profitable and strengthens the case for continued support."

EU Commissioner insists CAP reform must benefit environment

Pack’s statements came as European Environment Commissioner Janez Potočnik expressed the belief that changes should be focused around conservation. He said reforms will only prove successful if they play a significant role in ensuring the EU meets its environmental and climate targets at an address in Brussels.

Slovenian Commissioner Potočnik stressed yesterday that a restructuring of the scheme must link subsidies for farmers to their environmental performance and pushed for an increased uptake of agroecological practices.

Addressing the Future of Agriculture conference, Potočnik declared, “It is essential that the future CAP contributes the public goods we need to meet the environmental and climate challenges we are facing today. I do not see how the amount of public funds spent on agriculture can be legitimised unless the future CAP makes a significant contribution to reaching the EU's environmental and climate targets."

The proposals for a greener CAP include linking direct payments to farmers in the 'first pillar' of the CAP to their ability to maintain permanent pasture, set aside land and embrace crop diversification to prevent loss of biodiversity as well as sanctions for farmers who do not respect the environment.

While debate over what reforms will be made continues, changes to the common agricultural policy are expected to be made later this year to come into effect in 2013, when the new long-term EU budget comes into force. The EU Agricultural Committee will be visiting the US Congress in June to discuss CAP and US Farm Bill reforms, which are also undergoing alterations.