European Parliament’s Agri Committee adopts revised crisis and risk management tools

European Parliament’s Agri Committee adopts revised crisis and risk management tools

Comagri MEPs yesterday voted on the position they intend the European Parliament to take in negotiations with the Council (and the Commission) on the CAP transitional provisions until the future CAP reform, which they foresee for 1 January 2023 at the earliest, is in place. This position should officially become that of the European Parliament at the next mini-plenary in May.

The package of amendments for crisis management and agricultural risks (concerning articles 37 to 39 of Regulation (EU) No 1305/2013 – risk management tools : insurance, mutual funds and SRI-, precautionary savings – new article – and the crisis reserve – article 25, presented by MEPs Anne Sander (EPP) – permanent rapporteur for the acts implementing the single CMO – Paolo De Castro and Pina Picierno (S&D) was finally adopted during the voting session on 28 April, notwithstanding the negative opinion of rapporteur Katainen (Finland, Renew). These adopted amendments cover the amendment that J Decerle and I Tolleret (Renew) had tabled alongside A Sander’s on precautionary savings.

These amendments were voted by a very large majority of the Comagri, demonstrating the extent of its responsibility in the face of the crises facing agriculture and a CAP reform whose implementation is postponed until at least 2023.

Amendment 350 to Article 8 reduces from 30 to 20% the rate of destruction of “the average annual production of the farmer … or his three-year average production” necessary to obtain the compensatory aid granted by the mutual fund (provided for in Article 36(1)(b)).

Amendment 352 (identical to 351) to Article 8 lowers from 30 to 20% the rate of decrease “of the average annual income of the farmer concerned over the previous three years or three-year average”necessary to obtain the compensatory aid granted by the mutual fund (provided for in Article 36(1)(c)).

These amendments are in line with the amendments adopted in the framework of the Omnibus.

Amendment 359 to Article 8 aims at anticipating the application of a new regulatory measureproposed in the CAP strategic plans which allows farmers “to set up precautionary savings schemes without falling under the State aid regime”.

Amendment 360 to Article 25 on the “agricultural crisis reserve” provides that the initial capital of such a reserve for the period 2021-2027 must be financed outside the CAP budget (in addition to the CAP budget – in heading 3 of the MFF -) and is placed in the reserve at the beginning of the programming period. Furthermore, in order not to lose this money at the end of the first year, the reform of the operation of the reserve is anticipated to allow the carry-over of uncommitted funds from 2021 to the following years.

For details of the amendments:

https://www.europarl.europa.eu/doceo/document/AGRI-AM-648384_EN.pdf

O artigo foi publicado originalmente em Farm Europe.

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