EU budget still key to CAP Reform progress
Europe’s farmers have laid out their vision for a strong, innovative and profitable sector with a food production and a properly funded Common Agricultural Policy (CAP) at its heart.
Although much of the debate at the 2012 Congress of European Farmers, taking place in Budapest, has examined the role that research, development and new technology could play in driving forward European agriculture, discussions never veered far from the need to secure a workable CAP reform deal.
Although CAP reform proposals are in the public domain, the scale of the budget has yet to be decided and this is an essential element to progress. At the Congress, being attended by NFU Scotland Vice President Allan Bowie, an EU budget deal was still mooted for later this year but little light was shed on what the size and shape of that deal would be.
Those attending the congress today (Tuesday, 2 October) heard from EU Agriculture Commissioner Dacian Ciolos and MEP Paolo de Castro, chair of the European Parliament’s committee on Agriculture and Rural Development.
Speaking from Budapest, Mr Bowie said:
"It is only a few days since Scottish farming representatives had the opportunity to question Commissioner Ciolos, the chief architect of EU agricultural reform and his officials in Edinburgh. Today it was the turn of the commissioner and Mr de Castro to hear from farmers from across Europe and the key issues remain the same.
“Commissioner Ciolos restated his position that there may be more scope for flexibility, based on equivalence, being built around more controversial reform elements like greening, permanent pasture, crop diversity and Ecological Focus Areas. And there also appeared to be recognition that any reduction in budget may require reform elements to be sacrificed.
“Setting the EU budget is crucial to progress on CAP reform and we were once again reassured by the Commissioner that a budget deal is on track to be agreed in November or December. The size of the budget will determine whether or not CAP reform discussions can crack on in 2013. If there is to be significantly less money on the table, then producers can’t be expected to deliver on some of the current CAP reform proposals.
“Any cut in budget would have particular ramifications for Scotland given that our budget share – particularly within Pillar Two – already falls well short of the EU average. Direct support to Scottish farmers is worth, on average, €103 per hectare compared to Europe’s average of €268 per hectare. From rural development funding Scotland receives just €6 per hectare which is leagues below Europe’s average of €49 per hectare.
“Whilst Scotland gets below average payments through both pillars, it is the EU’s proposal of converging payments through Pillar Two that could significantly improve the amount of money Scotland has to spend on rural development measures – but only if an adequate pot of funding is available in the first instance.
“If the pot is reduced, that is a game-changer for reform and likely to spark an intense debate on priorities.”
Notes to Editors
• The 2012 Congress of European Farmers is taking place in Budapest, Hungary from 1 to 3 October 2012.
• More details on the congress is available at the following link: http://www.copa-cogeca.be/farmerscongress2012.aspx
Ends
Contact Bob Carruth on 0131 472 4006