Transcript The “Health Check” of the CAP reform: Legislative proposals

The Health Check of the CAP: Council political
agreement
20 November 2008
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The Health Check of the CAP

The “Health Check” fine-tunes CAP reform to:
– Make the Single Payment Scheme more effective, efficient and simple
– Adapt market instruments to meet new market opportunities
– Respond to new and ongoing challenges (climate change, bio-energy,
water scarcity, biodiversity, dairy and innovation)

Main steps:
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–
–
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20 November 2007: Communication and public consultation
20 May 2008: Commission proposal + Impact assessment
19 November 2008: European Parliament agreement
20 November 2008: Council political agreement
20 November 2008
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Direct support (1/3)

Flatter rate in Single Payment Scheme (SPS)
– MS allowed to move to flatter rates of support
– For new MS, possibility to apply Single Area Payment Scheme (SAPS) until
end of 2013

Simplification of the SPS including abolition of set-aside
– Set-aside entitlements abolished, become normal entitlements
– Rules of direct payments simplified
– Lower payment limitations introduced
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Direct support (2/3)

Cross compliance
– Simplification by deleting redundant provisions and articles not relevant to
farming activities
– Addition of provisions in list of Good Agricultural Environmental Conditions
(GAEC): buffer strips along water courses and compliance with
authorisation procedures (if any) in case of irrigation
– Implementation as from 2010 (by 2012 for buffer strips)
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Direct support (3/3)

Partially coupled support and other aid schemes
– Full decoupling from 2010 for arable crop, durum, olive oil and hops
– From 2012 for beef and veal, rice, nuts, seeds, protein and aid for starch
growers
– Abolition of energy crop premium
– MS allowed to maintain coupled support for suckler cows, sheep and goats

Revised Article 69 measures (new Article 68)
– Extend financing of revised Article 69
– Target measures to economic/environmental disadvantages in certain
regions/sectors
– Allow MS to support risk management measures
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Market measures (1/2)

Milk quotas
– Increase milk quotas by 1% annually from 2009 to 2013
– Additional super levy for 2009 and 2010 (for overshoots higher than 6%)
and adapted fat correction
– Review clause in 2010 and 2012 to assess market developments and
report on PDO cheeses
– Abolish private storage for cheese and butter disposal aids

Cereals
– Bread wheat intervention remains with no quantitative limits. Tendering
system starting from quantities above 3 million tons
– Quantitative ceilings set to zero for all coarse grains, durum wheat and rice
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Market measures (2/2)

Other intervention measures
– Pig meat intervention abolished

Specific support schemes
– Decoupling of processing aid by 2012
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Rural Development
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Address new and ongoing challenges: climate change, bioenergy, water scarcity, biodiversity, dairy accompanying
measures and innovation related to the afore-mentioned priorities
More funding via an increase in compulsory and the introduction
progressive modulation
Thresholds (in €)
2009
2010
2011
2012
1 to 5 000
0%
0%
0%
0%
5 000 to 300 000
2%
3%
4%
5%
Above 300 000
6%
7%
8%
9%
Revision of National Strategy Plan and Rural Development
Programs indicating how additional funds will be used in meeting
the new challenges
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In conclusion, the Health Check answers to:

How to simplify the Single Payment Scheme (SPS)?

How to adjust to new market opportunities?

How to respond to new challenges?
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