Presentation future CAP Iceland

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“The CAP towards 2020: meeting the food, natural resources and territorial challenges of

the future”

Dušan Chrenek, Head of Unit for Enlargement Directorate General for Agriculture and Rural Development

European Commission

Reykjavik, 22-6-2011

2 CAP seminar, Reykjavik, 22/06/11

Structure of the presentation

1. The CAP today2. Why do we need a reform?3. Future direct payment4. Future market support5. Future rural development6. Budget7. Next steps and concluding remarks


1. The CAP todayA substantially reformed policy…

• Structured in two complementary pillars

• Farm support mainly decoupled and subject to cross-compliance

• Role of market intervention mechanisms significantly reduced to safety net level

• Rural development policy strengthened with funds and new policy instruments

… better performing…

• Surpluses belong to the past

• Competitiveness improved

• Improved transfer efficiency

• More sustainable farming

• Integrated approach for rural areas

• Contribution to EU budget stability

… and resulting in a territorial and environmentallybalanced EU agriculture


2. Why do we need a reform?To respond to challenges ahead

Economicchallenges

Environmentalchallenges

Territorialchallenges

• Food security

• Price variability

• Economic crisis

• GHG emissions

• Soil depletion

• Water/air quality

• Habitats and biodiversity

• Vitality of rural areas

• Diversity of EU agriculture

Equity and balance of support

Contribution to Europe 2020 strategy


2a. What are the objectives with the reform?Viable foodproduction

Sustainable management of

natural resources and climate action

Balanced territorialdevelopment

• To contribute to farm income and limit its variability

• To improve sector competitiveness and share in food chain value-added

• To compensate areas with natural constraints

• To guarantee the provision of public goods

• To foster green growth through innovation

• To pursue climate change mitigation and adaptation

• To support rural vitality and employment

• To promote diversification

• To allow social and structural diversity in rural areas

Common EU response needed


2b. What policy instruments?

Better targeted to objectives

Based on two pillar structure

• Direct payments and market measures

• Rural development

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FutureDirect Payments


3. Direct payments

• Redistribution: between MS/ between farmers

• Better targeting: away from historical basis

• Redesign:• Greening of direct payments• Capping of payments• Small farmers support• Areas with specific natural constraints

• Simplification: cross compliance

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FutureMarket support


4. Market measures

• Tools needed for the management of farmers’ income volatility

• Risk management tools (EU level?)• Improved functioning of food chain contributing to market stability and distribution of value added across the chain

• Market orientation • Avoid disturbing functioning of markets and market signals• Intervention measures needed in times of market crisis to ensure market stability in the most effective way• Streamline and simplification

• Be consistent with income support instruments • Comply with WTO obligations

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FutureRural development


EU 2020 priorities• Create growth based on knowledge and innovation,

• Inclusive growth

• Green growth

5. Rural developmentin the context of the future EU agenda


5. Rural development

• Improved coherence with other EU policies:• Setting of EU level targets (thematic or territorial)• Environment, climate change and innovation as guideline themes• Closer strategic coordination at EU level (EAFRD, EFF, ERDF, ESF)

• More effective delivery mechanisms• number and scope of measures• e.g. rules for shared management including area-based development strategies• at the appropriate level: empower local actors

• Address risk management

• New distribution criteria


Rural development – objectives post-2013

Improve resource efficiency:

•Focus on green technologies•Energy and water saving technologies•Emission reducing and waste management technologies for livestock•Technologies reducing use of fertilizer and pesticides

•Adaptation to climate change and development of renewable energy

•Modernisation/restructuring

Means: Innovation, technology transfer and skills acquisition

Mitigate and adapt to climate change

•Reduce emissions•Carbon sinks•Renewable energy

• Sustainable land management to preserve ecosystems

• High nature value farming• Natura 2000 and WFD • Forest systems management• Traditional landscapes

• Management of natural resources

•Biodiversity, water, soil

Means: Payment to land managers for public goods, training and advisory services

Unlock local potential

•Diversify the rural economy

• Develop local infrastructure

•Mobilize and connect local actors, including public-private partnerships

Means: Social capital (cooperation, networking, place based strategies)

Foster a competitive agricultural sector

Develop rural areas

Preserve natural resources

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Budget


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7a. Next steps

Inter-institutional debate on the Communication

Preparation of Impact Assessment (IA)

Preparation of Legal Proposals

• In-depth Commission analysis of new policy settings, options and their economic, social and environmental impacts

Legal proposals will be presented in the second semester of 2011


7b. Concluding remarks

With reform, the CAP needs to:

better respond to the new economic, environmental and territorial challenges

be more sustainable, balanced, better targeted, simpler, effective and more accountable


For further information

• The CAP after 2013 http://ec.europa.eu/agriculture/cap-post-2013/index_en.htm

• The Communication on the future of the CAPhttp://ec.europa.eu/agriculture/cap-post-2013/communication/ index_en.htm

http://ec.europa.eu/agriculture/cap-post-2013/index_en.htm

http://ec.europa.eu/agriculture/cap-post-2013/communication/index_en.htm

http://ec.europa.eu/agriculture/cap-post-2013/communication/index_en.htm


Thank you for your attention.

Documents

Presentation future CAP Iceland