New developments for the CAP that will be ... 2014-2020
Montepulciano DOCG vine grown in awning-Abruzzo January 2013
The level of aid currently disbursed (250 - 350 euros / ha) in fact constitutes an interesting income for a company that has gone out of business and that does not have to face production costs, while it appears to be of little importance for a company that has made investments, which it takes up manpower, and that must balance costs and revenues. The current CAP is not functional with respect to the needs of European consumers who ask for reasonable prices and above all adequate to a quality of raw material; it fails to affect the unstoppable growth of prices from producer to consumer and on the other hand it does not provide suitable rules to ensure a clear recognition of food quality.
Over the past 10-15 years, the process of strengthening quality standards has stalled. Traceability remains a utopia for most products and this scenario cannot be considered satisfactory for Italian producers and consumers: the reform must be an opportunity to strengthen the rules.
Financial aid is currently provided to farms even if they no longer produce (decoupling) but no adequate form of aid is provided in the event of a market crisis.
The Commission proposes a reform process aimed at commensurate the aid granted exclusively according to the farm areas. Thus all references to the work, the product made, the characteristics of the company and the skills of the farmer disappear. The surface remains the only parameter for the subsistence of aid and one hectare of abandoned heath has the same relief as one hectare of specialized horticulture. This is an unacceptable approach from an economic and ethical point of view! The CAP cannot forget the essential elements of agricultural activity which is primarily made up of a producer and a product. It is through agriculture that it is possible to achieve that indispensable balance between living communities and terrestrial biodiversity. A commitment will be to implement the proposed regulation on rural development which provides for the transfer of know-out which is the first of the 6 priorities pursued which provides for particular attention to the promotion of human capital and innovation and to the creation of more stable consulting and research.
The current programming
In the current programming phase, rural development policies have already initiated some important interventions in this sense as Axis I, relating to the competitiveness of agriculture, includes financial support for the establishment of the Farm Advisory System at each Member State of the European Union, both by reimbursing agricultural businesses that use their skills (Measure 114), and by financing those who intend to start a business advisory activity (Measure 115). The transfer of knowledge and innovations is encouraged through the promotion of training and information activities aimed at entrepreneurs (Measure 111) and the reimbursement of expenses incurred to establish partnerships between research institutions and enterprises (or their organizational forms) with the aim of testing relevant innovations (Measure 124). Although these interventions had the merit of resuming a process of support for knowledge issues left in the shadows in the period 2000-2006, they did not provoke the desired transfer effects of innovation due to the following limitations:
In general, the 2014-2020 EU budget will almost certainly be divided into the following points:1. Inclusive and smart growth (47.9%)
3. Security and citizenship (1.8%)
It is a point of strong growth, albeit with a low financial endowment, which includes Migration, Internal Security, Citizenship, Justice, Consumer Defense, Food Security, Creative Europe;
4. Global Europe (6.8%)
It collects a series of items dedicated to the management of the EU's international position, such as Pre-accession and neighborhood, Stability, Security, Partnership, Humanitarian Aid, Development Cooperation;
5. Administration (6.1%)
The interventions proposed for the post-2013 CAP In the programming period for the 2014-2020 reform, the promotion of knowledge and innovation in agriculture concerns at least three distinct but connected initiatives:
- Member States are required to have a business advisory system at all times which has as its fundamental purpose the technical support to companies for the implementation of the new agricultural policy guidelines, but broadens the objectives and contents that range from conditionality to the agricultural practices necessary to have access to a share of direct payments (greening), to the new challenges envisaged in the Health check up to the sustainable development of small farms;
- the community budget foresees a specific chapter for agricultural research of about 4.00 billion euros which will be managed according to the rules of the Research Framework Programs;
- the rural development regulation, has as a priority basis the exchange of know-out and concentrating in a single common role of all the Rural Development Plans itself and allows a systemic homologation of the Measures concerning consultancy, services and innovation so that they can respond to objectives common. An important novelty of the rural development regulation concerns the establishment of the European Innovation Partnership (EIP), a new community institution that aims to:
Montepulciano DOC vine grown in a canopy - Abruzzo January 2013
The main ones relate to:
1. the user: the users of the interventions are increased and diversified; reference is made to agricultural entrepreneurs, forestry entrepreneurs, small and medium-sized enterprises engaged in rural areas, and land managers;
2. the beneficiaries: the recipients of the loans are the subjects who provide the transfer or consultancy to companies and not entrepreneurs, thus simplifying administrative procedures;
3. the interventions: many more tools are foreseen for the implementation of the interventions compared to the previous programming period; in fact, the training courses are accompanied by workshops and internships, demonstrative tests, exchanges on company management and company visits, information activities; moreover, the consultancy can also be provided by groups of companies;
4. the donors services: the regulation repeats several times that the subjects that provide services must demonstrate that they have adequate qualifications and suitable human and instrumental resources;
5. role of the Commission: the Commission reserves the power to issue subsequent acts relating to eligible expenses and the characteristics of the service providers. To ensure more targeted support for production, at the request of the states, the Commission proposes to divide the current single company payment into segments into more selective and dedicated components:
A very interesting proposal is to limit the context of CAP beneficiaries only to active farmers to prevent the support from going to subjects who are not actually the protagonists of the direct developments in the sector. In order to pursue a more equitable support, the Commission intends to improve the distribution of payments with a mechanism of progressive penalization of those with higher amounts than all the others.
In conclusion, for the CAP and for cohesion policies, the budget on the EU budget is reduced against a growth in items such as research, innovation and human capital. trend of increase of the financial endowment of the II pillar that has occurred in the last 15 years.
Dr. Antonella Di Matteo
Article 39 of the Treaty (ex Article 33 of the TEC) specifies that the objectives of the common agricultural policy are:
The above has sparked a lively public debate on whether the 2013 reform is sufficient to respond to the broader challenges relating to the balance of support, the economic prospects for agriculture and rural areas, and care for the environment (e.g. example, "greening"), action on climate change and sustainable and safe food production. In addition, emerging opportunities in the fields of health, trade, bioeconomy, circular economy and digital economy also need to be considered.
This questionnaire forms part of this extensive consultation process and will contribute to the impact assessment. The results of the questionnaire will be published on this web page and announced at a public conference in July 2017.
This consultation in no way affects the financial envelope for the CAP in the next multiannual financial framework.
The public consultation is open until 2 May.
The results of the questionnaire will be published on the European Commission website at this link (in English):
Consultation on modernizing and simplifying the common agricultural policy (CAP)
On 1 January 2021 the transitional regulation entered into force which will ensure the continuation of the current rules of the Common Agricultural Policy and the continuity of payments for 2021 and 2022, until the date of application of the new CAP which will start on 1 January 2023. .
What will change for direct payments?
For the CAP application years 2021 and 2022 the current system of direct payments will be maintained and therefore will be based on five types of payments:
The assignment of the current CAP titles will also be maintained for the years 2021 and 2022.
However, Italy will have to make some choices by February 19, 2021. It will in fact have to decide whether to continue the process of internal convergence of aid titles. In fact, the transitional regulation provides that Member States can continue to use, also in the years 2020, 2021 and 2022, the internal convergence mechanism, which was foreseen until 2019. Therefore, the convergence for 2020 can be applied retrospectively and the process of convergence may continue for the years 2021 and 2022.
This mechanism started in 2015 provides for the approximation of the value of the securities to the national average value (217.64 euros / ha) to date, the lowest securities have reached 60% of the national average value.
If Italy chooses to continue with the convergence mechanism, the value of the securities will have a progressive reduction for high value securities and a progressive increase for low value securities.
Transfer of securities and national reserve
In 2021 and 2022 the current rules on the transfer of titles remain in force (farmers will be able to buy and sell the titles) and on access to the national reserve (farmers will be able to obtain titles from the national reserve if they fall into the following cases: young farmers, new farmers, possession of land in a mountainous area or less favored area).
How many resources?
The Regulation establishing the European budget for the years 2021-2027 (Multiannual Financial Framework 2021-27 and Next Generation EU package) was published on December 22nd.
Table 1 shows the CAP resources available to Italian farmers in the years 2021-22.
Table 1: CAP resources 2021-2022 MFF + NGEU (millions of euros at current prices)
|Rural Development MFF||1.648,60||1.349,90|
|Rural Development Ngeu||269,4||641,2|
Source: Coldiretti elaboration
Italy will be able to count on a total budget of approximately 11.9 billion euros for the CAP 2021 and 2022, of which:
Funded by the EU IMCAP program. The opinions expressed in the article belong to the author and his sole responsibility.
The EC is not responsible for any use of the information contained therein.
To ensure stability and predictability, income support will remain an essential element of the CAP. Part of the support, ie the basic payments, will continue to be a function of the size of the farm in hectares. However, the future CAP must give priority to small and medium-sized farms and encourage young farmers to start their own businesses.
For this reason, the Commission proposes to EU countries to:
On 12 October 2011, the European Commission adopted a series of legislative proposals for the reform of the CAP valid for the period 2014-2020.
After a long and tiring negotiation carried out for the first time according to the ordinary legislative procedure introduced with the Lisbon Treaty (Article 294 of the TFEU), which involved the European Parliament, the Council and the Commission, the legislative phase of the CAP reform 2014/2020.
The legislative package consists of the following basic regulations:
The delays in the negotiations led to the postponement to 2015 (rather than from 2014) of the entry into force of the regulation on direct payments to farmers and of certain measures provided for by the Single CMO regulation and, at the same time, the need to provide for a transitional regulation to guarantee the continuation of aid also for 2014.
The approval of the European Parliament on the 2014/2020 MFF pursuant to art. 312 of the TFEU, which took place on November 19, 2013 following a political agreement with the Council, therefore made it possible to unblock the subsequent vote on the CAP reform regulations.
The texts of the legislative regulations leave the Member States with a long series of choices that will have to be made for the application of the reform. Below is a document with the list of choices to be made on direct payments settlement.
At the European level, the legislative phase, concluded with the issuing of the above regulations, now leaves room for the work of the European Commission, which will have to prepare the implementing acts of the reform (delegated acts and implementing acts provided for pursuant to articles 290 and 291 of the TFEU).
The legislative proposals of the European Commission confirm that the post-2020 CAP will be strongly oriented towards promoting and ensuring the sustainability of the agricultural sector, also in terms of "2030 Agenda on Sustainable Development"Adopted in 2015 by the United Nations General Assembly.
The goal is to promote and implement economic and social development capable of ensuring the satisfaction of the needs of the present generation without compromising the ability to satisfy those of future generations, also with reference to 17 "goals" and ai 169 "target" indicated byUN Agenda 2030.
At the national level, the Agenda was implemented in 2017 by the National Strategy for Sustainable Development (SNSvS). The Veneto Region has also adopted one Regional Strategy for Sustainable Development (SRSvS), through which the main tools to contribute to the achievement of the objectives of the National strategy and the "goals" of the UN Agenda 2030, with a integrated approach and transversal to the various aspects involved.
In an international context characterized by global social threats such as famine and the undernourishment of entire populations (particularly the Horn of Africa), environmental threats, also of a planetary dimension and economic threats facing Europe at the center of an unprecedented financial crisis, agriculture, which by its nature is the productive sector most linked to the satisfaction of basic needs, risks being sacrificed by policies that are inadequate to its strategic role for the survival and well-being of the populations.
This risk is accentuated by the fact that more and more and particularly in countries with an industrialized economy, agriculture plays an irreplaceable function of custody and production of public goods such as the safeguarding of territories, local traditions and their identity.
Europe has faced these problems since the beginning of its constitution with specific policies with alternating events and often contradictory attitudes: starting from 2013 a new phase of these policies will start which should take into account all the aforementioned problems and which will be decisive for the future of European agriculture.
The Center West section of the Accademia dei Georgofili, in collaboration with the A. Bartola Association and the Centro Spera (Center for inter-university studies on rural economic and environmental policies) of Ancona, organized on January 13th, in the Aula Magna of the Faculty of Agriculture of the University of Pisa, a day of studies on the effects that the new CAP (Common European Agricultural Policy) could have on Italian agriculture.
It was certainly not the first and only public occasion for reflection on these issues and it will certainly not be the last, but the complexity of the problems and the uncertainty about the future of our agriculture require numerous opportunities for meetings between scholars, politicians and operators in the sector. There is a great need for in-depth knowledge on the various aspects of the new legislation and it is necessary to exchange ideas at various levels and territorial areas on the consequences that the new regulations may have on the choices of farmers.
To meet these needs, the Organizers of the study day intended to invite speakers who could carry out the dual task of illustrating the meaning and weight of the choices contained in the regulations and, in the light of previous experiences, simulating the foreseeable effects on the agricultural realities of the 'Central Italy.
Representing the European Commission, Beatriz Velasquez illustrated the scaffolding of the new CAP, while Maria Rosaria Pupo d'Andrea, Angelo Frascerelli and Franco Sotte interpreted its impact on the productive world and on rural society. Gianluca Brunori concluded the study day with an evaluation of the correspondence between political choices and the problems of agriculture, in particular the Mediterranean one.