Risk and crisis management tools in Agriculture
*Monthly News*
Time period: March-April 2019
The Member of the Agricultural Committee voted on April 8ththe Horizontal Regulation which is the cornerstone of the reform package of the Common Agricultural Policy (CAP) proposed by the Commission.
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.
The reserve should be financed in addition to direct payments from the CAP and rural development funding. Its initial budget should be 400 million euros, while other funds could be added each year as well as unused funds from previous years, up to 1.5 billion euros. If this were not enough, the mechanism of financial discipline should be activated, but only as a last resort and excluding the first 2000 euros of payments.
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