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Will the reformed CAP respond to the challenge of sustainable development of natural resources and climate change? Nina Dobrzyńska, Ministry of Agriculture and Rural Development, Poland Copenhagen, 2 March 2012 The Common Agricultural Policy reform Three aspects need to be considered when talking about the CAP after 2013: 1. The need to reconcile various objectives so that they can function in the long-term perspective 2. The need to implement ambitious objectives within limited budgetary framework (maintaining the current CAP’s budget in its nominal value = decrease in real value ) 3. Farmer many responsibilities to deal with; various and numerous requirements, including ‘greening’, extensification resulting in lower yields and higher labour input, keeping numerous registers, lower income => encouragement? CAP for 2007-2013 meets the challenge of protecting natural resources and mitigating climate change Pillar I – Majority of the EU farmers: cross-compliance, good agricultural and environmental condition (GAEC) o o o o Reduction of greenhouse gas emissions (increasing biomass and soil carbon sequestration), Adaptation measures (increasing the soil water capacity), Preventing the decrease in soil organic matter (crop rotation), Maintenance of permanent pasture Pillar II – Measures under axis 2 of RDP o o o Agri-environment Afforestation of agricultural and non-agricultural land LFA, Natura 2000 „Health-check” in 2008 The so-called “new challenges” were defined and added to the list of CAP’s objectives: o o o o Climate change, Renewable energy, Water management, Biodiversity. Do we need greening? The reformed CAP for 2014-2020 - suggestions Pillar I – Majority of the EU farmers Greening Obligatory mechanism for Member States and farmers – why? 30% of national financial envelope: Problem – the value of ‘greening’ differs, but public goods are comparable – no justification … Suggestion – to set up the EU envelope - the same value for all MS Average cost of greening implementation vs. average greening payment rates cost of greening implementation (EUR/ha) rate for greening (EUR/ha) 201 151 114 105 103 47 42 57 25 19 33 28 18 30 21 34 26 33 32 23 24 30 22 La tv i Es a to L it n ia hu an Ro i a m a Po nia rtu g Sl al ov ak Un ia P it e ol a d Ki n d ng do Bu m lga r S w ia ed e Fin n la nd Cz S ec pa i h Re n pu Hu lic ng ar Au y st r ia EU 27 Lu Irela xe n m d bo ur g Fr an Ge ce rm a Sl ny ov e De nia nm ar Cy k pr us Ita l Gr y ee B ce Ne elgi th um er lan ds M al ta 12 20 38 102 52 49 40 20 7 66 64 61 59 52 82 80 80 78 76 76 72 70 70 69 67 126 120 93 92 86 120 117 113 Rate per ha after application of the unified greening rate (EUR 80 /ha) 600 548 500 400 300 179 189 200 201 298 281 294 272 267 266 257 258 261 244 244 247 241 237 234 219 222 229 201 214 218 167 177 178 181 186 187 192 164 164 161 157 154 149 139 142 99 109 121 100 320 325 361 344 353 374 468 273 281 294 240 245 264 La t E s v ia Lit ton h u ia Ro ani m a Po ani rtu a Sl ga ov l Un a ite P kia d ola Ki n ng d d Bu om lg S w a r ia ed Fin en la n Cz ec Sp d h ai Re n p Hu uli ng c a Au ry st ri EU a Lu Ire 27 x e la m nd bo u Fr rg Ge anc rm e Sl an ov y De eni nm a a Cy rk pr us Ita Gr ly ee Ne Belg ce th iu er m lan d M s al ta - basic payment Source: M.Zagorski et all rate for greening 80 EUR The reformed CAP for 2014-2020 – suggestions Greening - what is it about? Crop diversification (at least 3 crops), Maintenance of permanent grasslands (the level from 2014), Ecological focus areas (fallow land, landscape features, terraces, buffer strips and afforested areas) – at least 7% of arable land Organic farms automatically included in pro-environmental payments, Problem – why agri-environmental and NATURA 2000 are not included? Greening of direct payments results in increased environmental requirements also under the area measures under Pillar II Problem – basic requirements for environmental measures - very demanding, specific requirements in agri-environmental and climate measures are very high; system is complex and sophisticated Problem - Control of environmental actions is complex and expensive (greening as AEC) The reformed CAP for 2014-2020 : Pillar II At least 25% of EAFRD contribution – earmarked for measures relating to climate change and land management: agrienvironment-climate, organic farming and payments for areas with natural handicaps (LFA). Why not to trust Member States? (Subsidiarity!) Is it justified to include LFA in the obligatory 25% package?? Why are there no measures with evident environmental and climate-proof effects? (Natura 2000 payments, Forestry) Problem New criteria for delimiting the LFA are purely biophysical and do not include demographic criteria – Are they attractive? Disparities between the EU15 and the EU12 – depopulation in new Member States is a real problem – risk for landscape.. 8 The CAP for 2014-2020 : Pillar II Agri-environment-climate Obligatory measure under the RDP – 40 % of EU UAA covered; Introducing the element of ‘greening’ in the agri-environmentclimate measure will affect the scope of measures; Separating the financial support for organic farming – maybe clever, but artificial… Educational effect and increased awareness on large areas, environmental effect Problem – more flexibility, shorter commitment Payments on Natura 2000 sites and on areas connected with implementing the Water Framework Directive Package of forestry measures “Investments in forest area development and improvement of the viability of forests” 9 For further consideration - strategy Adjusted and refined instruments = expected outcomes BUT: There are new challenges and what about the new CAP? Example: Do the newly edited names AEM -> AECM = different impact or effect??? Lisbon Strategy – lack of success Europe 2020 – jumble of priorities, focus areas, etc. – a new strategy or just some superficial changes with complicated architecture? Risk of failure …and audits…. To consider – CAP's assumptions Greening The reform will reduce the potential and competitiveness of Polish and European agriculture (EFA - 7%); Not only less important land, but also lands valuable for agriculture, will be excluded; In the case of countries with fragmented agriculture, such as PL – large losses; Expected outcome = assumptions??? Small and scattered low-quality pieces of land which form neither green infrastructure nor ecological corridors; Negative effect on land arrangement; Effect - small parcels of land without any environmental effects; Poor crop rotation in comparison with GAEC; Problem with control – possible errors and difficulties in the whole agricultural sector (direct payment) receiving support, as in the case of agri-environmental measures Summary The current CAP includes instruments for climate protection and sustainable management of natural resources The reformed CAP – ensuring food security and competitiveness on the global market, a challenge of protecting natural resources and preventing climate change to greater extent - „manger et avoir une gateau” Ambitious plans have to be reflected in the budget! Greening An unequal level of direct payments - and greening –make it equal! Burden for farmers and administration ----big landowners may give up payments NO ENVIRONMENTAL RESULTS AT ALL!!! POSSIBLE NEGATIVE RESULT – ------OUT OF CONTROL – Reform in a proposed shape – fiction/ illusion… Fot. M. Szewczyk Thank you! Fot. M. Szewczyk Fot. M. Szewczyk Fot. M. Szewczyk Thank you! Fot. M. Szewczyk Fot. M. Szewczyk