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Report to the Council on the implementation of the cross compliance system. Inge Van Oost EC - DG Agriculture and Rural Development Unit AGRI – D.1 - “Direct Support”. Bonn, 19 June 2007. Report from the Commission to the Council 29 March 2007. Background Political statements - PowerPoint PPT Presentation
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Report to the Council on the Report to the Council on the implementation of the cross implementation of the cross
compliance systemcompliance systemInge Van Oost
EC - DG Agriculture and Rural DevelopmentUnit AGRI – D.1 - “Direct Support”
Bonn, 19 June 2007
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Report from the Commission to the CouncilReport from the Commission to the Council 29 March 2007 29 March 2007
Background Political statements Problems identified Some figures Proposals Next steps
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BackgroundBackground Article 8 of Council Regulation (EC) No
1782/2003 : « By 31 December 2007 at the latest, the
Commission shall submit a report on the application of the system of cross compliance accompanied, if necessary, by appropriate proposals notably with the view of amending the list of statutory management requirements set out in Annex III. »
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The concept “Cross compliance”The concept “Cross compliance” The 2003 CAP reform made direct support for farmers
dependent on compliance with requirements of public interest
▶Cross compliance concerns regulations/directives in the field of environment, public and animal health, animal welfare, plant protection products and the maintenance of all agricultural land in good agricultural and environmental condition.
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Cross-compliance: Cross-compliance: main elementsmain elements▶A farmer receiving direct payments must respect the
statutory management requirements (SMRs) and the good agricultural and environmental condition (GAEC)
▶ The competent national authority must provide the farmer with the complete list of statutory management requirements and the GAEC
▶ In case of non-respect: reduction or cancellation of reduction or cancellation of the direct paymentsthe direct payments
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Statutory Management Requirements (SMRs)Statutory Management Requirements (SMRs) ▶ 19 Community legislative acts in the areas of environment,
public, animal and plant health, and animal welfare (Annex III of R. 1782/2003)
▶Directives apply as implementedimplemented by the Member States
▶Respect of SMRs in old MSold MS (+ MT and SI): obligatory in 3 steps: 2005 – 2006 – 2007
▶Respect of SMRs in new MSnew MS:obligatory for new MS applying SAPS as from 2009
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▶ SMRs from 2005: Environment and animal identificationSMRs from 2005: Environment and animal identification• Wild Birds Directive• Groundwater Directive• Sewage Sludge Directive• Nitrates Directive• Habitats Directive
• Directive Identification and Registration of animals + 3 application Regulations for Identification and Registration of animals (bovines, ovines/caprines)
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• Directive « placing on the market of plant protection products »
• Directive « hormones »• Foodlaw Regulation• Regulation « Spongiform Encephalopathies “• 3 Directives « notification of diseases »
▶ SMRs from 2006: Public health, animal health, plant SMRs from 2006: Public health, animal health, plant protection products, notification of diseasesprotection products, notification of diseases
▶ SMRs from 2007: Animal welfareSMRs from 2007: Animal welfare• 3 Directives
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Good Agricultural and Environmental Condition (GAEC)Good Agricultural and Environmental Condition (GAEC)▶ Requirements for Good Agricultural and Environmental
Condition (GAEC) are to be defined by MSdefined by MS, taking into account soil and climatic condition, existing farm systems, land use, crop rotations, farming practices and farm structures
▶ Obligation to maintain land under permanent pasture
▶ On the basis of the common frameworkcommon framework set up in Annex IV of Council Regulation (EC) No 1782/2003 covering:
1. Protecting soil from erosion2. Maintaining soil organic matter3. Maintaining soil structure4. Ensuring a minimum level of maintenance and
avoiding deterioration of habitats
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Good Agricultural and Environmental Condition: Annex IVGood Agricultural and Environmental Condition: Annex IVIssue Standards
Soil erosion:
Protect soil through appropriate measures
Minimum coverage Minimum land management reflecting site-specific
conditions Retain terraces
Soil organic matter
Maintain soil organic matter levels through appropriate practices
Standards for crop rotations where applicable Arable stubble management
Soil structure
Maintain soil structure through appropriate measures
Appropriate machinery use
Minimum level of maintenance
Ensure a minimum level of maintenance and avoid deterioration of habitats
Minimum livestock stocking rates or/and appropriate regimes
Protection of permanent pasture Retention of landscape features, including where
appropriate, the prohibition of the grubbing up of olive trees
Avoiding the encroachment of unwanted vegetation on agricultural land
Maintenance of olive groves in good vegetative conditions
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BackgroundBackground Cross compliance has started in 2005 During the 2 first years of application a
number of questions have been raised In order to tackle these questions in due
time the decision has been taken to present the report in early 2007 to the Council, under the German presidency
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Political statementsPolitical statements The report contains a number of political
statements, based on the EU legislative framework:– Council Regulation (EC) No 1782/2003– Commission Regulation (EC) No
796/2004
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Political statementsPolitical statements DefinitionDefinition of cross compliance: “Cross compliance creates a link between
– the full payment of support, and – compliance with certain rules relating to
agricultural land and to agricultural production and activity in the areas of the environment, public, animal and plant health, animal welfare and good agricultural and environmental condition.”
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Political statementsPolitical statements DefinitionDefinition of cross compliance: “This link is expressed in concrete terms in
the possibility, if the rules are not respected, of full or partial reductions of certain EU agricultural payments. The reductions shall be based on the severity, the extent, the permanence, the repetition and the intentionality of the non-compliance.“
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Political statementsPolitical statements ObjectivesObjectives of cross compliance: “The first objective is to contribute to the
development of sustainable agriculture. This is achieved through the respect by the farmer of the rules relating to the relevant aspects of cross-compliance.”
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Political statementsPolitical statements ObjectivesObjectives of cross compliance: “The second objective is to make the CAP
more compatible with the expectations of society at large. There is now a growing body of opinion that agricultural payments should no longer be granted to farmers who fail to comply with basic rules in certain important areas of public policy.“
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Political statementsPolitical statements ObjectivesObjectives of cross compliance:
“Achieving these two objectives will help to ensure the CAP's future .“
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Political statementsPolitical statements Payments concernedPayments concerned by cross
compliance:– All direct payments - decoupled or coupled -
under the first pillar of the CAP (the payments listed in Annex I to Council Regulation (EC) No 1782/2003)
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Political statementsPolitical statements Payments concernedPayments concerned by cross compliance:
– Eight measures under "Axis 2" of the second pillar of the CAP (listed in Council Regulation (EC) No1698/2005)
• Agri-environment payments; • Natural handicap payments to farmers in mountain areas; • Payments to farmers in areas with handicaps, other than
mountain areas; • Natura 2000 payments on agricultural land and payments
linked to Directive 2000/60/EC (Water Framework Directive); • Animal welfare payments; • First afforestation of agricultural land; • Natura 2000 payments on forestry land; • Forest-environment payments.
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Political statementsPolitical statements ScopeScope of cross compliance:
– Statutory Management Requirements (SMRs)
• They do not create new obligations to farmers since the legal texts existed previously
• Most of them are Directives which implies a degree of variation in the implementation between Member states
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Political statementsPolitical statements ScopeScope of cross compliance:
– Good Agricultural and Environmental Condition (GAEC) : standards
• The concept and the obligations are not new to many farmers (good farming practices, etc.)
• Member states have to define obligations at farm level, where appropriate, for all standards listed in the EU framework (Annex IV of Regulation No 1782/2003)
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Political statementsPolitical statements ScopeScope of cross compliance:
– Good Agricultural and Environmental Condition (GAEC) : maintenance of the ratio of permanent pasture
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Political statementsPolitical statements Given the discussion during the start up phase
and the sensitivity of this topic, the Commission is willing to propose immediate solutions to the problems identified so far
There is however no question to water down the system
Every effort should be made to improve the acceptance of cross compliance, for the benefit of all
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Political statementsPolitical statements Subsidiarity is an underlying principle to
address the local risk and constraints and take into account the organisation in each Member state
However there is a need to ensure a level playing field for farmers, through a common legal framework
Striking the appropriate balance is one of the most important challenges of the system
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Problems identifiedProblems identified From the farmers’ view From the national authorities’ view From the Commission’s view
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Problems identified Problems identified from the farmers’ viewfrom the farmers’ view Volume and technical nature of the
information Obligations sometimes new Feeling of “double sanction” On-the-spot checks long and burdensome No exemption of reduction for minor non-
compliances
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Problems identified Problems identified from the national administrations’ viewfrom the national administrations’ view Difficulties to inform farmers of their
obligations Difficulties to organise the control system
(co-ordination of bodies, of controls, taking into account existing systems, reporting, etc)
Concept sometimes difficult to handle (what is an infringement, intentionality, etc)
Problems of interpretation of the EU legislation
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Problems identified Problems identified from the Commission’s viewfrom the Commission’s view Information given to farmer sometimes not
concrete enough Member States choice in the organisation of
controls sometimes raising difficulties, in particular for the designation of the Competent Control Authority
Some obligations were not checked Reduction matrices sometimes designed at a
very low level
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Some figures (2005, Some figures (2005, roundedrounded)) 5% of farmers receiving direct payments
have been checked on-the-spot (240 898 checks)
12% of these checked farmers have been applied a reduction (mostly for the I&R of animals and the GAEC)
68% of these applied reduction were at the minimum level of 1%
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Proposals from the CommissionProposals from the Commission To tackle horizontal problems which can be
solved at EU level Keeping the right balance between a
common level playing field between Member states and farmers and the need for flexibility to address the local constaints
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Proposals from the CommissionProposals from the Commission Allow an exemption of reduction for minor Allow an exemption of reduction for minor cases of non-compliancecases of non-complianceThese cases are indeed infringements but are defined by the Member States as not triggering the 1% reduction (they are between 0% and 1%). No reduction will be applied. A warning letter will be sentFollow-up outside the regular control sample Repetition factor (x3) would apply where appropriate
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Proposals from the CommissionProposals from the Commission Allow a Allow a de minimisde minimis rule for applying the rule for applying the reductionsreductionsThe infringement is found and notified to the farmer but no reduction will be applied below a certain amount (e.g. €50) as an administrative toleranceA warning letter will be sentFollow-up outside the regular control sample Repetition factor (x3) would apply where appropriate
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Proposals from the CommissionProposals from the Commission Harmonisation of control ratesHarmonisation of control ratesA 1% single control rate for cross compliance instead of the various control rate currently appliedBut findings made during of on-the-spot checks under sectoral legislation would have to be reported and followed up under cross compliance
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Proposals from the CommissionProposals from the Commission Increase of control rates following high Increase of control rates following high level of non-compliances limited to the level of non-compliances limited to the concerned area of cross compliance (and concerned area of cross compliance (and no other areas)no other areas)In case of high level of non-compliances in one area the Competent Control Authority shall check other areas if it is competent for these. It is proposed to limit the increase of control rate to the the only area were the high level was found.
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Proposals from the CommissionProposals from the Commission Advance notice of on-the-spot checksAdvance notice of on-the-spot checksCurrently no rules for cross compliance but unannounced checks as a principle for eligibilityProposal to harmonise the 2 elements with the same principles:
– Advance notice for checks on area for SPS and SAPS (up to 14 days)
– Unannounced checks for I&R of animals, animal health, animal welfare and food and feed law (48h by derogation)
– Further examination for other schemes
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Proposals from the CommissionProposals from the Commission Clarify the selection, the timing, the Clarify the selection, the timing, the elements and the reporting of on-the-spot elements and the reporting of on-the-spot checkschecksPrinciple proposed for the timing :
– Most of the checks within the 1% control sample are made during the period allowing checking most or the most representative obligations. The MS identifies this period.
– The remaining obligations are checked at other relevant periods of the year within the 1% control sample. No obligation is ignored in the control system.
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Proposals from the CommissionProposals from the Commission Clarify the selection, the timing, the Clarify the selection, the timing, the elements and the reporting of on-the-spot elements and the reporting of on-the-spot checkschecksElements to check: The principle of checking a sample (a minimum of half) of parcels will be introduced The reportreport will be sent within 3 months to the farmerThe selection will include a random element
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Proposals from the CommissionProposals from the Commission Taking into account the Farm Advisory Taking into account the Farm Advisory System (FAS)System (FAS)The FAS is a fundamental tool to implement cross complianceThe participation to the FAS by the farmer could be seen as a lowering factor in the risk analysis for the selection of on-the-spot checks
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Proposals from the CommissionProposals from the Commission Taking into account the relevant Taking into account the relevant certification systemscertification systemsCertain certification systems cover elements relevant for cross complianceBetter use could be made of the data collected by these certification systems for the risk analysis of cross complianceThe certification systems should nevertheless be relevant for cross compliance and officially approved
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Proposals from the CommissionProposals from the Commission Modify the so-called “10 month rule”Modify the so-called “10 month rule”The “10 month rule” is the rule which obliges the farmer to keep the land at his disposal during 10 months to allow activating his entitlements under the SPS.It is envisaged to clarify the rules for eligibility for both SPS and SAPSThe responsibilities in case of transfer of land in relation to cross compliance will also be clarified
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Proposals from the CommissionProposals from the Commission Phasing-in period for the introduction Phasing-in period for the introduction of SMRs under cross compliance for of SMRs under cross compliance for MS applying the SAPSMS applying the SAPSThe 8 MSs applying the SAPS, including the MSs switching from SAPS to SPS, will introduce the SMRs along the same 3 steps as other MSs, as from 2009BG and RO will introduce the SMRs along the same 3 steps as other MSs, as from 2012
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Next stepsNext steps Discussion at the Council and the European
parliament on the report. Conclusions in the Council on 11 June.
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Next stepsNext steps Discussion at the Council and the European
parliament on a draft Council Regulation on :– The 10 month rule– The phasing-in of SMRS for MSs applying
SAPS Provisions to be implemented as from 2008
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Next stepsNext steps Discussion at the Management Committee for
Direct Payments on implementing rules regarding the management and control.
Provisions to be implemented as from 2008
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Next stepsNext steps Further discussions with the Member States to
allow sharing “best practices” and comparing experience, especially on :– the use of bottlenecks for controls– the systems of reduction (e.g. applying
points systems)– the information provided to farmers– the greater risk of reduction for certain
farmers
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Next stepsNext steps Changes to the scope of cross compliance will
be addressed in the “Health Check” The Commission has committed to foresee a
realistic timetable for the inclusion of any new or changed requirements into the scope of cross compliance
Information :
http://ec.europa.eu/agriculture/simplification/crosscom/index_en.htm
Thank you for your attentionThank you for your attention
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