Sotiris Koutsomitros1

Common agricultural policy 2014 – 2020 Impacts on horticulture

Sotiris KoutsomitrosAgricultural-Engineer MSc Environmental Engineer MSc

Directorate of Agricultural Policy Min. Rural Development & Food

Sotiris Koutsomitros2

Contents

Status Quo

The configuration of the CAP for the next period (2015-2020)

Direct Payments as a safety net

Focusing on rural development

Effects on horticulture

Agricultural income index exercise

     

Values 2012 and 2013, in mio Euro  

     

Item area (Ha) Production (tn)

Value 2012

Value 2013

CEREALS (including seeds)

990.290 4.284.214    

- value at producer prices     1011,39 1053,75

INDUSTRIAL CROPS 434.618 1.447.245    

- value at producer prices     543,84 640,86

FORAGE PLANTS      

- value at producer prices     459,60 449,86

Item area (Ha)Production

(tn)Value 2012

Value 2013

VEGETABLES AND HORTICULTURAL PR/cTS 93.220 3.228.000    

- value at producer prices     1514,35 1496,80

FRUITS 289.238 2.866.927    

- value at producer prices     2036,21 1804,29

OLIVE OIL 829.695 1.793.522    

- value at producer prices     739,56 728,81

CROP OUTPUT (01 TO 09)    

- value at producer prices 2.637.061 13.619.908 6514,44 6464,26

Agricultural income index exercise

Item Value 2012 Value 2013

AGRICULTURAL GOODS OUTPUT    

- value at producer prices 9364,22 9199,55

TRANSFORMATION OF AGRICULTURAL PRODUCTS    

- value at producer prices 780,29 780,33

OUTPUT OF THE AGRICULTURAL ‘INDUSTRY’    

- value at producer prices 10549,66 10386,20

GROSS VALUE ADDED AT BASIC PRICES 5499,88 5318,12

FIXED CAPITAL CONSUMPTION 2021,92 2205,90

NET VALUE ADDED AT BASIC PRICES 3477,96 3112,23

Fruit & vegetables

AREAS (Ha)Production

(tonnes)

OPEN AIR VEGETABLES90.133 2.932.759

GREENHOUSE VEGETABLES3.435 266.239

FRUITS 289.238 2.866.927

OLIVE OIL 829.695 1.793.522

0%

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area (Ha) Production (tn) value 2012

open air veg. greenhouse veg fruit olive oil

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Direct Payments : Status Quo

Direct payments Mio EURO Percentage

Coupled payments livestock 35 1,46%

Coupled payments crops 31 1,30%

Special payment for cotton 186 7,78%

Single payment on land 2.049 85,73%

Special entitlements 89 3,72%

total 2.390 100,00%

Livestock 19%

Crops 81%

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EUR/ha

DP new distribution (EUR/ha)** DP status-quo (EUR/ha)*

EU-27 average (EUR/ha) 90% of EU-27 average (EUR/ha)

Convergence in the EU

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Legal texts

Direct Payments

Rural development

Common market organisation

Horizontal Regulation (common obligations for all

regulations: cross-compliance, IACS, Advice, penalties and

sanctions)

New Architecture for Direct Payments•

Cro

ss C

om

pli

ance

or

Basic Payment• New rights in 2015• Minimum

agricultural activity

• National or regional flat rate per hectare

• Regions according to objective criteria

Greening

• Crop rotation (>10Ha)• permanent pasture• eco focus Area

(>15Ha)

• 30% either by region or by the national ceiling

Young Farmers

• Up to 2% • < 40 years

• For 5 years from the start of activity

Small Farmers

• Simplify applications and controls

• up to 1250 €/year• direct entry in

2015• Greece: 350.000

farmers (50%)

Coupled Payments• Up to 8% or 10%

Natural Constraints areas• Up to 5%

Active Farmer

Redistributive Payment

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Payments On the field

59%

30%

7%

0%

20%

40%

60%

80%

100%

NaturalConstraintsYoung Farmers

CoupledPaymentsGreening

Basic Payment

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Active farmer

Non-agricultural activities are not the main economic activities of the

company (direct payments at least 5% of total income or agricultural

income at least 1/3 of total income)

Observes the minimum activity (fixed by the MEMBER STATE) on the

field

Pastures : grazing density?

Arable: ploughing?

Orchards: Pruning or weed control???

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Small Farmers

Total payments in 2015 up to 1250 €/year

Exemption from greening and cross compliance

Obligations: Preservation of agricultural land and their nature

Entry only in 2015 – farmer's decision to Exit at any time

Major reduction of administrative burden for Greece (350,000

holdings)

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Greening

• 30% for 3 mandatory measures depending on the type of land, with a penalty of at least 45%: 

• 1. Maintain permanent pasture 

• 2. At least 2 crop rotation with maximum 75% coverage per cultivation in holdings with arable land from 10Ha and over

•  3. Eco focus area 5% MORE THAN 15Ha, including elements of the landscape for arable land 

• Organic farming = green 

• EXCLUSIONS: legumes, rice, plantations

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Young Farmers

25% bonus up to 25 hectares

40 years age

Up to 5 years from the establishment of the holding

Up to 2% of the budget

1% covers 8800 young farmers

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Natural Constraints areas

– Optional – up to 5% of the national ceiling – Target all or some of the areas with natural handicaps as

defined by Member States on the basis of article 33 (1) of the new Rural Development (not necessarily mountainous and disadvantaged)

– annual payment per hectare– Useful for replenishing income for some groups of

farmers– Possibility to transfer funds between the pillars

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Redistributive Payment

Optional for Member States, up to 30% of the national

ceiling

Cut from everyone and benefit the «first» hectares as

additional value

First hectares: up to 5 hectares for Greece

In Greece the application may benefit part time farmers at

the expense of full time farmers

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Rural development measures

Setting up producer groups Short supply chains Farm advisory Specific subprogram for small farms and Knowledge and information transfer actions risk Insurance management Innovation Environment

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Basic and Green payments

New entitlements for 2015 :

1. 1 entitlement per hectare

2. Either Greece as 1 region, or, Separation of pastures and croplands 

Pastures are common land and much cheaper than crop land 

3. Convergence to a flat rate per hectare of the same region in 2019

4. The value will depend on the decision for the regions

5. National Reserve (newcomers and new farmers)

6. All farmland will be covered

7. More vegetables and fruits covered

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Coupled payments

Deficit in the trade balance (meat)

Food security (cereals)

Sustainability of the sector if dependant on primary

production (sugar)

Complementarity of actions (feed stuff)

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Direct payments for development

Basic Payment and Greening = guaranteed minimum income

Income Maximization from the market and economies of scale with

collective organization (groups/chain)

Minimizing trade deficit through coupled payments

insert new capacity by strengthening farmers' increased effectiveness

Internal convergence = mitigation effects and Rural Development

Measures

reaction time for actual development

Impacts and trends on horticulture

Market orientation Increase of land with vegetables Fruit increase? Direct Payments = safety net Target: Added market value Cost limitation through collective actions Logistics cut Market orientation – Market access

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Thank you!!!

Infohttp://www.minagric.gr/index.php/el/the-ministry-2/agricultural-policy/

koinagrotpolitik/1194-kapfuture 

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

http://www.agrotikianaptixi.gr/rdpost2013/