Policy Issues for 2015

As 2014 draws to a close it seems a good time to look forward to some of the policy issues which are likely to have an effect in 2015.  The most notable will of course be the introduction of the Basic Payment Scheme from 1^st January.  EU Farm Commissioner, Phil Hogan, has recently ruled out a delay in the introduction of the new Greening measures.  This is in response to a letter from four key members of the EP Committee on Agriculture and Rural Development calling for a 12 month referral to allow farmers to become familiar with the rules.  But the Commissioner has already confirmed that one of his first jobs, within the next twelve months, will be to look at opportunities to simplify the BPS, most notably the Greening requirements.  It is already written into the legislation that the 5% Ecological Focus Area (EFA) requirement will be reviewed with a likely rise to 7% in 2017.  But the Commissioner has indicated that he will also use the opportunity to look at simplifying other Basic Payment Scheme measures, although he will not ‘re-open the basic policy decision of the 2013 reforms’.  Quite how these two aims can be reconciled is not clear to us.

Simplifying farming rules will be a ‘top priority’ for the Commissioner in 2015 and the Basic Payment Scheme will only be part of this.  Hogan has said he will be looking into over 200 regulations which contain the framework for market support – the Common Market Organisation as well as looking to simplify the rules for foods with protected names.  Referring to the end of the milk quota system in 2015, he has said there will be no change to the rules that were agreed back in 2008, stating we are too far into the milk year to make changes in areas such as super-levy fines.  Producers have known about the situation for long enough and those facing penalties should look at reducing milk output.

Elsewhere, it appears after years of political deadlock, EU negotiators have struck a deal which could speed up the approvals process for the cultivation of GM crops in the EU.  Under the proposals Member States will be able to decide for themselves whether genetically modified crops can be cultivated in their country.  Whilst approvals for cultivations will still be made at EU level, MEPs and EU Governments have agreed plans which will allow each Member State to institute bans in their own countries.  With this option available, it is hoped that more countries will support the overall approvals process.  This would allow pro-GM countries such as Spain and the UK the option of forging ahead.  Under the proposals, countries will be able to ban GM crops for variety of reasons including ethical concerns, or favouring certain habitats, landscapes or organic farms.  However, the criteria do not include the MEPs initial list which was much wider and included specific environmental reasons.  The legislation needs approval, but this is expected and it could be in force by spring 2015.  Whether it achieves its stated aim of freeing-up the log jam on GM approvals remains to be seen.

Meanwhile could a trade deal with Brazil take a step closer in 2015?  The lack of any progress in the Mercosur talks has led a former Brazilian Development Minister and a member of BRF, one of the biggest food firms in Brazil, to say the country would have a better chance of of achieving a trade deal with the EU if it left the Mercosur group.  Back in July, Brazil, Argentina, Paraguay and Uruguay (the four Mercosur members) finalised thier joint position, but the talks have failed to make any progress since then.  It is claimed that Argentina’s protectionist tendencies are stalling any progress.  The need for some kind of progress is moving further up the agenda in Brazil which is getting nervous that a deal between the US and the EU (under the TTIP talks) could close the door on a lucrative export market.