A renewed Crisis reserve proposed by the EP Agricultural Committee

A renewed Crisis reserve proposed by the EP Agricultural Committee

The Member of the Agricultural Committee voted today the Horizontal Regulation which is the cornerstone of the reform package of the Common Agricultural Policy (CAP) proposed by the Commission.

Farm Europe is delighted to see that the concept of a new agricultural reserve, well funded and more reactive, has been endorsed by the EP Committee by a wide majority. Such a crisis reserve financed with up to 1,5 billon EUR would allow the CAP to cope with major crisis and would help in developing stronger and more targeted risk management tools across Europe. This crisis reserve would aim at triggering market measures in case of serious market disturbances. Furthermore,  it would work as a re-insurance for the Income Stabilisation Tool to be developed by farmers in the future with support available from the CAP 2nd pillar.
All agricultural sectors, including crop farmers and beef producers are in real need of a proper crisis management “toolbox” at EU level. In the very short term, for dairy farmers and the sugar beet sector such tool could be a real game changer, allowing the supply chain to have more visibility and to better protect the producers’ income against volatility. To ensure the effectiveness of this renewed system, Risk Management tools and Crisis management at EU level should be used in a complementary way in the  future. Something that would be both cost effective for public spending and economically efficient to protect farmers in a volatile world.

Beyond the crisis reserve, the amendments to the Horizontal Regulation proposed by the European Commission and adopted todayby the EP Agricultural Committee go in the right direction, by improving the Common framework for audits and controls and limiting the risk of a renationalisation of the policy. In particular the MEPs’ vote guaranteesa level playing-field, which setsEU standard for both audit and sanctions and definesa clear conformity system to be implemented in each Member state and controlled by the Commission. These arebasic conditions for a truly Common CAP, able to demonstrate its efficiency both financially and “on the ground”to all taxpayers and citizens.

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