- 1. The Common Agricultural Policy 2014-2020:proposals from the
European Commission David Barnes/Drew Sloan Dec 2011 - Jan
2012
2. Purpose of these meetings
- To inform you about the European proposals for the future
CAP
- So that you can begin to think about preparing for it
- To set out Scottish Governments views at this stage
- To hear your informal views and comments
- And to enable you to give us well-informed formal feedback via
our consultation exercises.
3. Caveats
- Some things still need clarification from the Commission.
- Everything in the proposals is subject to change in the
negotiations.
- The consultation exercise is designed to inform SGs final
position, so what we set out tonight is just an interim
position.
- How the new CAP will be implemented in Scotland will be the
subject of a separate consultation process nearer the time.
4. What tonight will cover
- The content of the European proposals:
-
- Issues common to both pillars
5. Introduction
- The EU is negotiating its budget and policies for
2014-2020.
- Three EU institutions are involved:
- Only the European Commission can table a proposal: focus
tonight is on the Commissions proposals for the CAP.
- Council of Ministers and European Parliament then negotiate and
decide.
6. CAP Budget and CAP rules will be decided separately
- CAP budget will be considered alongside the rest of EU budget,
by Finance Ministers and Heads of Government.
- CAP rules will be negotiated and decided by Agriculture
Ministers and the European Parliament.
7. CAP budget
- Commission proposal is roughly a flat cash budget for CAP
2014-2020, which means a decline in value in real terms (no uplift
for inflation).
- Commission proposes redistribution of the budget, to boost
Pillar 1 payments in new Member States and to make Pillar 2
fairer.
8. Pillar 1 Direct Payments budget
- Commission proposal for convergence to help new Member
States:those below 90% of EU average /ha get an uplift.
- Proposed UK Direct Payments ceiling is slightly down.
- Within-UK allocations not yet known.
- Scotlands average /ha is as low as some new Member States.
9. Pillar 2 Rural Development budget
- Commission proposes to use more objective criteria than in the
past to allocate Member State shares.
- UK allocation not yet known.
- Criteria should lead to bigger percentage shares of the EU RD
budget for UK and Scotland.
- Total RD budget in Scotland 2014-2020 will also depend on how
big the EU RD budget is, and how much national co-financing money
is available.
10. CAP rules
- 2009-2010 gathering ideas - Commission consultation exercise,
Council discussions, Lyon report.
- Pack Inquiry into future farm support.
- Nov 2010 Commission options paper.Council discussions, Dess
report.
- Oct 2011 Commission issues formal proposals designed to meet
its objectives.
11. Two Pillars, four regulations
- Market measures (Single CMO)
Financing and monitoring(Horizontal regulation) EU implementing
rules (Delegated Acts) 12. Commissions ideal timetable
- CAP proposals issue 12 October 2011.
- EU and CAP budgets decided summer 2012.
- CAP regulations finalised end 2012 or early 2013.
- EU-level and Member State-level implementing rules and
legislation adopted during 2013.
13. If the timetable slips
- Pillar 1 Direct Payments and Market Measures status quo could
essentially continue until the new system begins, Eg on 1 Jan
2015.
- Pillar 2 Rural Development Programmes risk of a gap between
current programmes and new ones unless bridging arrangements are
agreed.
14. Content of the EU proposals
- Next slides from the Commissions own presentation:
15. 16. Who would have entitlements under the proposals?
- All current entitlements would expire.
- Entitlements under the new system would be allocated to:
-
- farmers who are actively farming in 2014 and submit a
claim,andwho activated at least one SFP entitlement in 2011.
-
- and people eligible for the National Reserve.
17. National Reserve
- Funded by one-off deduction of up to 3% of Scotlands total
Direct Payments.
- Priority given to farmers under 40 who started farming in the
last 5 years.If necessary to meet this demand, the 3% can be
increased.
18. Who is an active farmer ?
- Direct Payments must be at least 5% of non-agricultural income
(unless Direct Payments 3ha of cropping, minimum 3 crops each
covering >5% and 5yrs) must be maintained as declared in
2014.
- Each holding must have Ecological Focus Area (buffer strips,
landscape features, fallow etc) equal to 7% of arable and temporary
grass area.
- Organic farming qualifies automatically.
21. 3.Young farmer top-up
- Compulsory for Member States. 25% top-up per hectare, up to a
limit on hectares.
- Limit must be set between 25ha and average holding size in UK
(54ha).
- Under 40, and max. 5 years after establishment.
- Up to 2% of Scotlands total Direct Payments.
22. 4.Coupled support
- Voluntary for Member States/regions.
- Replaces Article 68andpre-SFP schemes (SCPS, SAPS etc) which
some member States are still using.
- Limited to fixed no. animals and to payment rates necessary to
maintain current production.
- Up to 5% of total Direct Payments, except for Member States
currently using >5%.
23. 5.Area of Natural Constraint (ANC) top-up
- ANC = new designation for LFA
- Top-up voluntary for Member States/regions.
- Up to 5% of total Direct Payments.
- Payable on all or part of ANC, according to objective
criteria.
- Must be deducted from Pillar 2 ANC support (LFASS).
24. Progressive reductions/capping
- 20% from 150,000 to 200,000
- 40% from 200,000 to 250,000
- 70% from 250,000 to 300,000
- Salaries/employment costs are deducted.
- Greening payments are exempt.
- Proceeds used in Pillar 2 for innovation.
25. Small farmer scheme
- Compulsory for Member States, optional for the farmer (one-off
decision in 2014).
- Up to 10% of total Direct Payments.
- Fixed payment, between 500 and 1,000.
- Replaces other payments inc. coupled payments.
- Exempt from greening and from cross-compliance penalties.
26. Pillar 1 Market measures
- EU has moved from permanent intervention in the market to
safety-net only.
- Provision for emergency measures in the event of extreme market
disruption.
- Milk quotas already being phased out, sugar quotas proposed to
be phased out.
27. Pillar 2 Rural Development:current rules
- 7-year programmes approved by Commission.
- Co-financed by EU and domestic money.
- Axis 1 farm business development (capital, skills).
- Axis 2 agri-environment (capital and annual), LFA, woodlands,
animal welfare.
- Axis 3 diversification and community projects.
28. Pillar 2 Rural Development:proposals for 2014-2020
- Evolution not revolution.
- Common Strategic Framework joined-up approach between RD, EU
Structural Funds and EU Fisheries Fund.
- No Axes, no minimum percentages except 25% of EU funds on
environment (inc. organic and LFA).
- Possibility for sub-programmes within RDPs.
29. Less Favoured Areas
- Re-titled Areas of Natural Constraint (ANC).Defined as:
- Other areas meeting biophysical criteria (now defined by EU not
Member State), or
- Other areas facing specific constraints (eg islands), up to 10%
of total area.
- No special budget for each category, but different maximum
rates.
30. Other areas biophysical criteria
- Temperature, soil quality, slope, wetness or dryness.
- Close to criteria used already to define LFA in Scotland, but
less fine-grained: applies to whole ward or parish if 66% of area
meets the criteria.
31. ANC payments
- Costs incurred or income foregone as a result of natural
constraints, compared with non-constrained areas.
- Take account of Pillar 1 ANC top-up.
- Minimum 25/ha, maximum 250/ha (300/ha for Mountain), degressive
above a threshold.
- Transition arrangements for farmers excluded by the new
criteria.
32. Common rules to Pillars 1 and 2
- Rules to be followed by Member States (inspections, audit,
financial reporting etc): not covered tonight.
33. Cross-compliance
- As at present, two elements:
- Statutory Management Requirements (SMRs) and
- Good Agricultural and Environmental Condition (GAEC).
34. Statutory Management Requirements (SMRs)
- EU legislation on environment, animal and plant health, public
health, animal welfare, which farmers should be complying with
anyway.
- Down from 18 to 13 (15 when Water Framework Directive and
Sustainable Use of Pesticides Directive have been implemented).Some
animal health SMRs removed.
35. Good Agricultural and Environmental Condition (GAEC)
- 8 requirements (previously 8 compulsory + 6 optional).
- Retention of permanent pasture removed from GAEC: moved to
greening.
- Minimum stocking density removed from GAEC: moved to
agricultural activity definition.
- New GAEC: Protection of wetland and carbon rich soils including
a ban on first ploughing
36. Cross-compliance penalties
- Take account of severity, extent and timescale.As at
present:
- Penalty can be waived if minor non-compliance (but not if risk
to public or animal health).
- Negligence: up to 5%, or 15% if repeated.
- Intentional: 20% to 100%.
- Detailed rules set by Commission.
37. Next steps: Scotland
- Consultation on Pillar 1, Dec to Feb.
- Already consulted widely on Direct Payments for Pack Inquiry,
and we need rapid information on stakeholder views.Questionnaire on
SG website, with hard copy alternative.
- Pillar 2, separate approach, including links with Common
Strategic Framework.
- These consultations are to inform the negotiating
position.Separate exercises later to decide how to implement.
38. Commission proposal Parliament 1st reading Council 1st
reading Parliament 2nd reading Council 2nd reading Conciliation
procedure NEXT STEPS:EU By end-2012 orearly 2013 ??! 39.
- Local implementation decisions.
40.
