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In December 2005 the Government launched a "Vision for the Common Agricultural Policy", which was intended to stimulate debate and show how the Common Agricultural Policy should change in 10-15 years. This report examines the proposals and finds them a lost opportunity. The Government should have directed the debate towards scrapping the existing CAP and replacing it with a Rural Policy for the European Union. There should thus be a new Vision document, launched in a more subtle way so that allies for reform can be enlisted. The credibility of the document depends on the Government providing full and detailed evaluation of the impact of proposals on biodiversity, the environment, markets for agricultural goods and individual farm enterprises. This should be done by mid 2008. The long-term justification of the expenditure of taxpayers' money is the provision of public benefit. These public goods should be measurable and capable of evaluation.
After five years of debates, consultations and negotiations, the European institutions reached an agreement in 2013 on the Common Agricultural Policy (CAP) for the 2014-2020 period. The outcome has major implications for the EU’s budget and farmers’ incomes, but also for Europe’s environment, its contribution to global climate change and to food security in the EU and in the world. It was decided to spend more than €400 billion during the rest of the decade on the CAP. The official claims are that the new CAP will take better account of society's expectations and lead to far-reaching changes by making subsidies fairer and ‘greener’ and making the CAP more efficient. It is also asserted that the CAP will play a key part in achieving the overall objective of promoting smart, sustainable and inclusive growth. However, there is significant scepticism about these claims and disappointment with the outcome of the decision-making, the first in which the European Parliament was involved under the co-decision procedure. In contrast to earlier reforms where more substantive changes were made to the CAP, the factors that induced the policy discussions in 2008-13 and those that influenced the decision-making did not reinforce each other. On the contrary, they sometimes counteracted one another, yielding an ‘imperfect storm’ as it were, resulting in more status quo and fewer changes. This book discusses the outcome of the decision-making and the factors that influenced the policy choices and decisions. It brings together contributions from leading academics from various disciplines and policy-makers, and key participants in the process from the European Commission and the European Parliament.
Evidence taken before Sub-committee D (Environment and Agriculture)
The Environment, Food and Rural Affairs Committee criticises the European Commission's proposed sweeping reforms of the CAP that would see the current complex and bureaucratic system of direct payments replaced by one that could be even worse. These changes include a new tier of environmental conditions, with penalties for farm businesses that do not comply or fail to meet new criteria for 'active' farmers, farm size and number of employees. The Committee sets out the key principles the UK government should promote. The first objective of the CAP should be to maintain and enhance the EU's capacity to produce food with a significant degree of self sufficiency and, in the long term, less reliance on income support from the tax payer. The UK's future food security is threatened by the low profitability of its agriculture. More than half of UK farm businesses would be unprofitable without the support they receive through the CAP. The Committee concludes that direct payments have a place within the CAP for as long as business conditions in agriculture fail to deliver a thriving and profitable industry. The CAP must deliver a competitive and viable agricultural sector that produces safe and high quality food with a lower environmental impact. The UK should press for the EU to argue more strongly for recognition of environmental and animal welfare production standards within trade agreements. The committee also warns that the EU proposal for a multi-tiered single farm payment will require expensive new computer systems and auditing.
The 2003 reform of the Common Agricultural Policy marked the culmination of a gradual reorientation of EU farm subsidies from product support to direct income support. A mid-term "Health Check" of this reform is now underway, exploring what further adjustments may be required for the period 2009 to 2013. The Commission's proposals for short-term adjustments to the CAP merit broad support. The Committee is not convinced of the long-term justification for maintaining direct subsidy payments in their present form, and advocates a phased reduction in direct payments over the course of the next financial period beginning in 2014. A significant proportion of the funds released should remain earmarked for the CAP, but be spent on the rural development element of the policy rather than on farm subsidies. The report also addresses the challenges and opportunities that lie ahead for the EU agriculture industry. The sector is a significant contributor to climate change, but also vulnerable to its effects. Climate change may present a business opportunity for the industry, which is uniquely placed to deliver environmental services. Soaring global demand for many agricultural commodities has allowed some sectors of the European farming industry to prosper, while others are grappling with rising input prices and stagnant or falling output prices. Were supply shortages to ensue in future, the Committee expects that food scarcity would be a function of income rather than of production capacity. Those most at risk are consumers on low incomes in the developing world. Further trade liberalisation in the agriculture sector is supported, but if direct payments are withdrawn and import tariffs reduced-as the UK Government advocates-then the production standards that EU producers of agricultural goods are obliged to meet should be re-examined.
This book is the first to document the reform of the EU's Common Agricultural Policy (CAP) and to analyse the political and economic factors which determined the outcome of the negotiations. The policy (non-)reform will affect the world's global food security and agricultural ...
Work of the Committee In 2007 : Third report of session 2007-08, report, together with formal Minutes
The long-term securing of the UK's food supplies is a fundamental responsibility of Government. The Department for Environment, Food and Rural Affairs (Defra) must concentrate on building capacity in the food and farming industries so that they can respond to market signals in ways that will reduce the risk of food shortages. Producing sufficient food is only part of the challenge: how food is produced is equally important. The Committee notes that increases in production will have to take place in the context of reducing greenhouse gas emissions from the food system, reducing reliance on fossil fuel-derived inputs, and conserving soil and water. Consumer engagement will be vital if Defra is to achieve its vision for the UK food system. The report does not advocate food self-sufficiency for the UK and emphasises the importance of strong trading relationships with a variety of countries. Defra's response to the challenge of securing food supplies must take place in a European and global context. The focus of the reformed Common Agricultural Policy must be on sustainable food production, whilst encouraging European farmers to make their contribution to meeting the world's future food demands. The Committee also highlights the development of "food colonialism" or "land grabbing"- a phenomenon that involves the large-scale acquisition of land overseas by wealthy investors in order to grow food for people in the investor country. The report also calls for an urgent increase in spending on public-sector food and farming research.
In its 7th report of session 2006-07 (HC 345-I, ISBN 9780215521330) on British Waterways (BW), the Committee pressed for adequate funding of the waterways network and expressed concern at the poor relations that existed at the time between the Department for Environment, Food and Rural Affairs (Defra) and BW. This further report was prompted by BW's decision in February 2008 to withdraw from the partnership to restore the Cotswold Canals in order to fund urgent repairs to the Monmouthshire and Brecon Canal. The report focuses on BW's regeneration and restoration work, but also looks at how Defra and BW are working together and the Committee is encouraged by an improvement in the relationship and communication between the two bodies. Restoration of canals produces little if any direct benefit to BW and BW has often carried all the financial risk in such projects. Canal restoration schemes can be of great value to the areas where the canals are restored, producing knock-on benefits such as more jobs and visitor income. The BW Board is charged primarily with maintaining the existing waterways network and cannot be expected to take on substantial risk from restoration projects, especially in present economic conditions. If the public sector wishes to obtain external benefits from canal restoration schemes, the bodies responsible for obtaining those benefits should bear the risk. Defra, with British Waterways and other interested bodies, should develop a mechanism to score and prioritise public investment in canal restoration according to the external benefits that would be created, and should agree how the financial risks of such projects should be borne.
The European Communities adopted the Nitrates Directive on 12 December 1991 with the objective of reducing water pollution caused or induced by nitrates from agricultural sources and preventing further such pollution. It requires member states to designate as Nitrate Vulnerable Zones areas of land that drain into polluted waters and to set up action programmes in these zones. Nitrate pollution can also increase eutrophication, reduce biodiversity and affect the recreational value of water. The Department for Environment, Food and Rural Affairs (Defra) estimates that the cost of treating nitrates in drinking water between 2005 and 2010 will be £288 million in capital expenditure and £6 million a year in operating costs. Defra issued a consultation document on the Directive in 2007, and its proposed changes reflect the fact that the European Commission does not think the Directive was properly implemented in England. The proposals would have a significant impact on some 195,500 farmers in the affected areas, requiring them to alter practices for storing and spreading livestock manure and for applying chemical fertiliser. The Committee finds insufficient evidence to assess how effective the current action programme has been in reducing nitrate pollution in England. It welcomes some of Defra's proposals but has concerns about others. The proposed new action plan will place a considerable financial burden on livestock and dairy farmers, and Defra should make representations to the Treasury on the need for support in the form of tax relief for the construction of slurry storage facilities.