Thursday, May 22, 2008

EU Ag Policy

Now we have a farm bill, we can pay a little attention to what the EU is going through. Here's a link to a summary.

It must be nice to have 27 bureaucrats (the ag ministers of the countries) be able to set policy.
And from a summary of the EU Commissions proposals:

Abolition of set-aside: The Commission proposes abolishing the requirement for arable farmers to leave 10 percent of their land fallow. This will allow them to maximise their production potential.

Phasing out milk quotas:
Milk quotas will be phased out by April 2015. To ensure a ’soft landing’, the Commission proposes five annual quota increases of one percent between 2009/10 and 2013/14.

Decoupling of support: The CAP reform “decoupled” direct aid to farmers i.e. payments were no longer linked to the production of a specific product. However, some Member States chose to maintain some “coupled” – i.e. production-linked - payments. The Commission now proposes to remove the remaining coupled payments and shift them to the Single Payment Scheme, with the exception of suckler cow, goat and sheep premia, where Member States may maintain current levels of coupled support.

Moving away from historical payments: Farmers in some Member States receive aid based on what they received in a reference period. In others, payments are on a regional, per hectare basis. As time moves on, the historical model becomes harder to justify, so the Commission is proposing to allow Member States to move to a flatter rate system.

Extending SAPS: Ten of the 12 newest EU members apply the simplified Single Area Payment Scheme. This is supposed to expire in 2010, but the Commission proposes extending it to 2013.

Cross Compliance: Aid to farmers is linked to the respect of environmental, animal welfare and food quality standards. Farmers who do not respect the rules face cuts in their support. This so-called Cross Compliance will be simplified, by withdrawing standards that are not relevant or linked to farmer responsibility. New requirements will be added to retain the environmental benefits of set-aside and improve water management.

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