Transcript Sotiris Koutsomitros

Common agricultural policy 2014 – 2020
Impacts on horticulture
Sotiris Koutsomitros
Agricultural-Engineer MSc
Environmental Engineer MSc
Directorate of Agricultural Policy
Min. Rural Development & Food
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Contents
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
Status Quo
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The configuration of the CAP for the next period (2015-2020)

Direct Payments as a safety net
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Focusing on rural development
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Effects on horticulture
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Agricultural income index exercise
Values 2012 and 2013, in mio Euro
Item
CEREALS (including
seeds)
area (Ha)
Production
(tn)
990.290
4.284.214
- value at producer prices
INDUSTRIAL CROPS
- value at producer prices
434.618
Value
2012
Value
2013
1011,39
1053,75
543,84
640,86
459,60
449,86
1.447.245
FORAGE PLANTS
- value at producer prices
Agricultural income index exercise
Item
VEGETABLES AND
HORTICULTURAL PR/cTS
area (Ha)
Production
(tn)
93.220
3.228.000
- value at producer prices
FRUITS
- value at producer prices
Value
2013
1514,35
1496,80
2036,21
1804,29
739,56
728,81
2.637.061 13.619.908 6514,44
6464,26
289.238
2.866.927
- value at producer prices
OLIVE OIL
Value
2012
829.695
1.793.522
CROP OUTPUT (01 TO 09)
- value at producer prices
Item
Value 2012
Value 2013
AGRICULTURAL GOODS OUTPUT
- value at producer prices
9364,22
9199,55
780,29
780,33
10549,66
10386,20
5499,88
5318,12
TRANSFORMATION OF AGRICULTURAL
PRODUCTS
- value at producer prices
OUTPUT OF THE AGRICULTURAL
‘INDUSTRY’
- value at producer prices
GROSS VALUE ADDED AT BASIC PRICES
FIXED CAPITAL CONSUMPTION
NET VALUE ADDED AT BASIC PRICES
2021,92
3477,96
2205,90
3112,23
Fruit & vegetables
AREAS (Ha)
Production
(tonnes)
OPEN AIR VEGETABLES
90.133
2.932.759
3.435
266.239
FRUITS
289.238
2.866.927
OLIVE OIL
829.695
1.793.522
GREENHOUSE VEGETABLES
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
area (Ha)
open air veg.
Production (tn)
greenhouse veg
value 2012
fruit
olive oil
Direct Payments : Status Quo
Direct payments
Coupled payments livestock
35
1,46%
Coupled payments crops
31
1,30%
186
7,78%
2.049
85,73%
89
3,72%
2.390
100,00%
Special payment for cotton
Single payment on land
Special entitlements
total
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Mio EURO Percentage
Livestock
19%
Crops
81%
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0
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DP new distribution (EUR/ha)**
EU-27 average (EUR/ha)
DP status-quo (EUR/ha)*
90% of EU-27 average (EUR/ha)
Latvia
Estonia
Lithuania
Romania
Portugal
Slovakia
Poland
United Kingdom
Spain
Bulgaria
Sweden
Finland
Czech Republic
Hungary
Austria
EU-27
Ireland
Luxembourg
France
Germany
Slovenia
Denmark
Cyprus
Greece
Italy
Belgium
Netherlands
Malta
EUR/ha
Convergence in the EU
800
700
600
500
400
300
200
100
Legal texts

Direct Payments
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Rural development
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Common market organisation
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Horizontal Regulation (common obligations for all regulations:
cross-compliance, IACS, Advice, penalties and sanctions)
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New Architecture for Direct Payments
Redistributive Payment
Coupled Payments
Natural Constraints
areas
• Up to 5%
• Up to 8% or 10%
• Cross Compliance
Young Farmers
• Up to 2%
• < 40 years
Small Farmers
• For 5 years from the
start of activity
• Simplify
applications and
controls
• up to 1250 €/year
• direct entry in
2015
• Greece: 350.000
farmers (50%)
Greening
• Crop rotation (>10Ha)
• permanent pasture
• eco focus Area
(>15Ha)
• 30% either by
region or by the
national ceiling
Basic Payment
• National or regional flat • New rights in 2015
• Minimum
rate per hectare
agricultural activity
• Regions according to
objective criteria
Active Farmer
or
Payments On the field
100%
7%
80%
30%
60%
Coupled
Payments
Greening
40%
59%
20%
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0%
Natural
Constraints
Young Farmers
Basic Payment
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Active farmer
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Non-agricultural activities are not the main economic activities of the
company (direct payments at least 5% of total income or agricultural
income at least 1/3 of total income)
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Observes the minimum activity (fixed by the MEMBER STATE) on the
field
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
Pastures : grazing density?

Arable: ploughing?
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Orchards: Pruning or weed control???
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Small Farmers
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Total payments in 2015 up to 1250 €/year
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Exemption from greening and cross compliance
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Obligations: Preservation of agricultural land and their nature
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Entry only in 2015 – farmer's decision to Exit at any time

Major reduction of administrative burden for Greece (350,000
holdings)
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Greening
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•
30% for 3 mandatory measures depending on the type of land,
with a penalty of at least 45%:
•
1. Maintain permanent pasture
•
2. At least 2 crop rotation with maximum 75% coverage per
cultivation in holdings with arable land from 10Ha and over
•
3. Eco focus area 5% MORE THAN 15Ha, including elements of
the landscape for arable land
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Organic farming = green
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EXCLUSIONS: legumes, rice, plantations
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Young Farmers
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
25% bonus up to 25 hectares
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40 years age
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Up to 5 years from the establishment of the holding
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Up to 2% of the budget
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1% covers 8800 young farmers
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Natural Constraints
areas
–
–
–
–
–
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Optional – up to 5% of the national ceiling
Target all or some of the areas with natural handicaps as
defined by Member States on the basis of article 33 (1)
of the new Rural Development (not necessarily
mountainous and disadvantaged)
annual payment per hectare
Useful for replenishing income for some groups of
farmers
Possibility to transfer funds between the pillars
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Redistributive Payment

Optional for Member States, up to 30% of the national
ceiling
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Cut from everyone and benefit the «first» hectares as
additional value
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First hectares: up to 5 hectares for Greece
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In Greece the application may benefit part time farmers at
the expense of full time farmers
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Rural development measures
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Setting up producer groups
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Short supply chains
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Farm advisory
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Specific subprogram for small farms and
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Knowledge and information transfer actions
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risk Insurance management
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Innovation
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Environment
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Basic and Green payments
New entitlements for 2015 :
1. 1 entitlement per hectare
2. Either Greece as 1 region, or, Separation of pastures and croplands
Pastures are common land and much cheaper than crop land
3. Convergence to a flat rate per hectare of the same region in 2019
4. The value will depend on the decision for the regions
5. National Reserve (newcomers and new farmers)
6. All farmland will be covered
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7. More vegetables and fruits covered
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Coupled payments
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Deficit in the trade balance (meat)
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Food security (cereals)
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Sustainability of the sector if dependant on primary
production (sugar)
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Complementarity of actions (feed stuff)
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Direct payments for development
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Basic Payment and Greening = guaranteed minimum income
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Income Maximization from the market and economies of scale with
collective organization (groups/chain)
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Minimizing trade deficit through coupled payments
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insert new capacity by strengthening farmers' increased effectiveness
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Internal convergence = mitigation effects and Rural Development
Measures
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reaction time for actual development
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Impacts and trends on
horticulture
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Market orientation
Increase of land with vegetables
Fruit increase?
Direct Payments = safety net
Target: Added market value
Cost limitation through collective actions
Logistics cut
Market orientation – Market access
Thank you!!!
Info
http://www.minagric.gr/index.php/el/the-ministry-2/agriculturalpolicy/koinagrotpolitik/1194-kapfuture
http://ec.europa.eu/agriculture/cap-post-2013/legalproposals/index_en.htm
http://www.agrotikianaptixi.gr/rdpost2013/
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