CAP Reform Results
MFF CAP Reform issues
The following MMF related issues were agreed at the final trilogue on the 24th September 2013, which brought to a clo all the major negotiations of this CAP reform.
Capping of payments to large farmers
Cappin g payments over €300,000 to individual holdings will be voluntary for the member state. There will be no obligation to impo it.
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However, payments over €150,000 will be subject to a 5% reduction.
If a member state decides to grant a redistributive payment on the first hectares using more than 5% of the national envelope they can choo not to apply this reduction.
The figures will relate only to the direct payment, not to the greening element of the payment and salaries linked to agricultural activity are not included in the figure. Flexibility between Pillars
Member states may move up to 15% of their Direct Payments (Pillar 1) national envelope to rural development schemes. (pillar 2). This money does not need to be co-financed by the member state.
Member states can for the first time move money from Pillar 2 to pillar 1. Member states which receive below the average EU per hectare payment can move 25% of their entire rural development financial envelope into Pillar 1.
Member states which receive above the average EU per hectare payment can move 15% of their RD envelope into Pillar 1.
Cofinancing rates (EU contribution)
The following co-financing rates for rural development were agreed.
85% for Less developed regions, outermost regions and the smaller Aegean islands 75% for regions who GDP per capita was less than 75% of EU-25 average, but who GDP per capita is above 75% of the GDP average of the EU-27
63% for transition regions
53% for all other regions
好好珍惜80% for LEADER operations incread to 90% in the outermost regions
75% of operations relating to the environment and climate change mitigation 100% for money moved from pillar 1 to pillar 2 (voluntary modulation)
up to 95% for countries in financial difficulties (eg Ireland, Greece, Cyprus, Portugal) External convergence (equalisation of payments)
All member states with direct payments per hectare below 90% of the EU average clo a third of the gap between their payments and 90% of the EU average.
All MS must attain a minimum of €196 per he ctare in current prices by 2020.
MS with payments above the average will finance the redistribution proportional to their distance from the EU average payment level. The convergence process will be phad in over 6 years until 2020.
CAP deal agreed on the 26th June - including all other major points in the CAP
reform
Direct Payments
Single Farm Payment - This has been split into two payments, the Basic Payment Scheme, which will cover 70% of direct payments and the Greening Payment, which will cover 30% of direct payments.
Greening Payment
Will cover 30% of the national envelope. Farmers will have to do three measures. 1) Crop diversification - farmers will have to grow 2 crops on farms with more than 10 hectares of arable land, and 3 crops when arable land exceeds 30 hectares. The main crop may cover at most 75% of arable land, the two main crops at least 95% of the arable land.
2) Permanent Grassland - Permanent grassland on a farm must be maintained.(at either national, regional or farm level)
3) Ecological Focus Areas (EFA)- at least 5% of the arable land on a farm must be in an ecological focus area. This only applies to farms with more than 15 hectares or arable land. The following qualifies as an EFA - field margins, hedges, trees, fallow land, landscape features, biotopes, buffer st
rips, afforested area, permanent crops, short rotation coppice. The Commission will review this in 2017, and if the review is positive, they will come forward with a legislative proposal to increa the EFA to 7% in 2018.
Greening Equivalence - A number of measures will qualify for greening if they meet the basic requirements for greening. The include agri environmental schemes in pillar 2, organic farming, Natura 2000 and national certification schemes.
Farms with over 75% permanent grassland will be deemed as green by definition as long as they have less than 15 hectares of arable land.
Active Farmer
Negative list approved. This is mandatory for member states and includes the following :-
Railways
战国时期地图∙Airports
∙Water works
∙Real Estate Services
∙Permanent sports and recreation grounds
Camping sites and non permanent sports grounds have been removed from the list . Member States can add further to the list and t a minimum agricultural activity threshold.
十大面条The criteria of 5% of non agricultural income was removed.
Young Farmer scheme
A new mandatory young farmer scheme will be introduced. This will pay a top up of 25% on the basic payment of farmers under 40 years of age for the first 5 years after entering farming. It will be funded by using up to 2% of the national envelope and will be compulsory for member states.
Small Farmer scheme
This will be voluntary for a member state to introduce. Member states can pay between €500 and €1250 to farmers in the scheme. Member states can choo how to calculate the payment. MS can u up to 10% of national envelope to fund the scheme. Farmers in the scheme are exempt from greening and from most cross compliance requirements.
Redistributive Payment -
A MS can choo to bring in a redistributive payment for the first hectares on the farm. This can u up to 30% of the national envelope and can be redistributed to farmers on their first 30 hectares. (or up to the average farm size in a MS if this is higher than 30 hectares.)
Entitlements - The UK and other member states with a full area payment system can continue to u existing entitlements. The national rerve can also be ud to give entitlements to farmers who are farming but didn't have entitlements in the reference year (2013)
Coupled Payments - The rate is 8% for countries who don't currently u up to 5% of their national envelope in coupled payments. 13% for tho currently above 5%. There is an extra 2% available for protein crops. The list of eligible ctors remains at the original commission list which includes, suckler cows and beef, but excludes tobacco, poultry and pigs.
Internal Convergence - There will be convergence to the extent that the minimum payment will be 60% of the national/regional average per hectare payment. However no farmer can lo more than 30%. Member states have flexibility on how
the reductions are applied to tho above the average. MS have the option of a maximum payment per hectare.
动物词语Financial Discipline - The threshold for financial disciplin e is €2000. Therefore, if financial discipline needs to be applied in a given year, a reduction of the single farm payment will only be applied to farms which receive more than €2000 in the SFP. ANCs (Areas of Natural Constraint) - Member States may grant an additional payment for ANCs (old LFAs) of up to 5% of the national envelope. This is optional for the Member State.
Rural Development
General - The existing Axis system is replaced by six "priorities" and sub priorities against which MS will need to design their RD systems.
RD programmes are part funded by the EU and co-financed by the member state. The new priorities are :-
∙Fostering knowledge transfer and innovation
∙Enhancing competitiveness and sustainable management of forests
∙Promoting food chain organisation
∙Restoring, prerving and enhancing ecosystems
∙Promoting resource efficiency and transition to a low carbon economy
∙Promoting social inclusion, poverty reduction and Economic development in rural areas
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Specific measures available under a menu to member states
食堂承包方案∙Innovation
∙Knowledge, (developing a knowledge bad agriculture) primarily through Farm Advisory Services
∙Farm restructuring, investment and modernisation
∙Young Farmers (including start up grants up to €70,000)
∙Small Farmers (including start up aid up to €15,000 per farm)
∙Risk Management Toolkit - Insurance and mutual funds
∙Producer Groups/Organisations - Support for tting up groups.
∙Agri-Environmental Measures
谗言欲滴∙Organic Farming
∙Forestry
∙Mountain Areas
∙Co-Operation
∙Areas of Natural Constraint (ANC)
∙Non agricultural activities including start up grants for small business
∙Basic rvices and village renewal including investments in broadband
∙LEADER schemes
Active Farmer - RD payments only to active farmers in areas including organic farming and animal welfare. Other ctors, including agri-environmental payments open to all.
ANCs(LFAs) - Implementation of new biophysical criteria delayed until 2018 Forestry - Forestry included in rural development programmes with a principle on payment bad on income foregone (a UK demand)
Quality schemes - Extra support for quality schemes
Agri environmental schemes - No double funding possible for agri environmental schemes, organic farming, Natura and Water Framework Directive.
Fund contribution - At least 30% of RD funds rerved for measures related to investments, ANCs, Forestry, Agri-Environmental schemes, Organic farming, Natura 2000, and forest environment measures. (This is a reduction on the current 25% for agri-environmental related schemes only)
Co-financing rates and the RD allocations have not been addresd as MFF issues
Single CMO
Milk - Milk package more or less remains intact. Intervention period for butter and SMP extended by one month. Incread quantities for Private Storage Aid for butter and Skimmed milk powder to 50,000 tonnes. The French proposal for a new quota fell. There will be a recital related to commissio
n powers to address vere market imbalances. PDO/PGI chees will now benefit from private storage aid. (Key bits that fell included the demand for supply management and extension of rules linked with compulsory recognition of POs and the new quota proposal)
Wine - New wine planting rights system will be put in place for the period 2016-2030, along with continued funding for restructuring.
Sugar - Sugar quotas will stay until 2017, an incread exclusive period for refiners to access cane from 3 months to 5 months (TBC). EP now has Delegated acts on the tting of sugar quotas.
Reference Prices - No changes to the reference prices, but EP now has delegated acts on the changing and tting of reference prices, this could lead to political increas in the future.
