Negotiations on CAP reform *Monthly News* March-April 2019

Negotiations on CAP reform

Monthly News

March-April 2019

• European Parliament: Comagri operates a major community reframing of the reform project

March was marked by the elaboration of the drafting of the compromise amendments by ComAgri MEPs on the three texts of the reform rapporteurs, to reinforce the commonality of the rules, as well as alternative amendments. These amendments are put to the vote on 1 April (single CMO), 2 April (strategic plans Pillar 1 & Pillar 2) and 8 April (horizontal regulation) respectively.

The Members of the agricultural committee of the European Parliament adopted yesterday and today the two first reports on the Common Agricultural Policy reform (proposal on National strategic plans, and single CMO). The amendments voted by the COMAGRI MEPs significantly improve the initial proposal of the European Commission. 

Despite the tight schedule, the Committee gave a strong orientation to the next CAP, striking the right balance between economic and environmental performance and between flexibilities and common rules.

Among the orientations given by the MEPs on the strategic plans, the flagship decisions are:

• the definition of the parameters for the financial allocation of the first pillar, with 60% for basic payment support and redistributive payment, 20% for the ecoscheme and 10+2% for coupled support in addition to 3% for sectorial schemes;

• a proper cross-compliance with clear EU rules and the possibility for Member States to propose equivalent measures, which guarantees a level playing field across Europe while offering the possibility for a real simplification;

• a balanced allocation of the second pillar targeting at least 30% to environmental objectives (including a maximum of 40% of the allocation for less favoured areas supports) and at least 30% to investment and risk management tools;

• on internal convergence: at least 75% of average direct subsidies by 2024 and 100% by 2027;
• a support to digital and precision farming via investment incentives which are necessary to accompany a forward-looking EU agriculture;

• a capping at €100.000 (possible deduction of 50% of agriculture-related salaries), unless the Member States implement a 10% redistributive payment;

• a limitation at 15% of financial transfers from 1st to 2^nd pillar and 5% from 2^nd to 1st pillar.

• compulsory redistributive payments of at least 5 % in each Member state,

• Deletion of EFAs provision from the new conditionality (cross compliance), minimum EFAs to be defined by MS and inserted in eco-schemes.

• implementation of the CAP reform postponed – at this stage – to 2022.

When it comes to the single CMO, the Committee set in the Regulation:

• the possibility for reduction scheme as successfully implemented in 2015-2016 to cope with the milk crisis;

• improvements in the competition rules to further encourage farmers’ organisations;

• extension of the Regulation tools for the wine sector to 2050 and a good compromise for wine labelling.

The next step will take place next week on April 8th, with the vote on the 3rd Regulation of the CAP reform, tackling financial management, audit and controls rules. This Regulation is a cornerstone of the CAP reform proposals. It will be of the utmost importance for the MEPs to guarantee that the CAP does not turn into 27 different national frameworks without a solid EU framework. In the meantime, this Horizontal Regulation must set the parameters and provide financial capacity to the CAP to react effectively in case of crisis, via a reformed crisis reserve.

• Member States: Delegations that refuse to enter the negotiation process pending budget decisions.

• Positions of Member States in the SCA on the voluntary or mandatory nature of measures of the strategic plans and on the performance framework
• An Agricultural Council which revealed the reluctance of Member States to negotiate in a piecemeal way the texts of the reform, in particular in the absence of visibility on the MFF
• The request from the Member States for a transitional regulation to ensure continuity of aid in 2021, when the delay of entry into force of the new CAP is now recognized by the Commission itself

full note available on FE members area