CAP Reform

The Budget

The next big milestone in the CAP reform negotiations is the Heads of State meeting on the 7^th and 8^th February.  As set out in our November Bulletin, this is another chance for EU leaders to agree the Budget (Multi-annual Financial Framework) for 2014-2020.  The CAP talks cannot move to any meaningful conclusion until the Budget is set and it is known how much funding will be available for the next seven years.

The talk in Brussels suggests that, if agreement cannot be reached at this meeting, the whole issue would have to wait until after the German elections in September and October.  This would seem to put the whole CAP reform discussions back another year, giving a 1^st January 2016 start date.

EP Finds Compromises

In the meantime, however, the CAP discussions do inch forwards.  The latest move has seen the Agriculture Committee of the European Parliament (EP) vote on amendments to the EU Commission’s proposals.  As the November Bulletin set out, there were originally over 7,000 of these and they had to be consolidated into a series of compromises. 

Although this development is interesting it is not as important as perhaps some have been indicating.  The agreed texts still need to be ratified by the full EP, and then go on to be part of the negotiations with Farm Ministers.  Therefore, what has been decided is still a long way from being a final agreement and we do not intend to cover the full details.  For those that are interested more information can be found via – http://www.europarl.europa.eu/committees/en/agri/home.html.  Some of the more interesting points include;

• The three greening rules have been watered-down
• The idea of ‘equivalence’ (see last Bulletin) has been accepted, and indeed it has been suggested that the normal rules on double-funding be abandoned, allowing ELS to satisfy greening and the £30 per Ha still be paid
• The phasing to a regional rate should be more gradual (10% first year regional rather than the proposed 40%
• The Small Farmers Scheme should be voluntary for Member States, but the Young Farmers Scheme should be mandatory (and more generous).  Coupled payments could comprise up to 15% of funding. 
• The rules on capping are largely unaltered from the original Commission proposals.  Any Active Farmer test would be left to Member States to decide. 
• ‘Modulation’ could be at 15%, rather than the proposed 10% maximum.