New aims deserve commensurate budget
Whilst rural development policy should remain an integral part of the new CAP, European agriculture also faces new challenges, such as food security, the fight against climate change, renewable energies, water management and biodiversity, notes the committee. A strong agricultural policy is therefore needed to benefit European society as a whole, and help achieve the EU 2020 strategy goals, add MEPs.
To ensure that the CAP delivers these public goods, the funds allocated to it must be "at least maintained during the next financial period" (from 2013), say MEPs. The committee also stresses that the CAP should not be "renationalised" (i.e. returned to national control) and that direct payments to farmers should be fully funded from the EU budget, to avoid any co-financing by Member States that could harm fair competition within the single market.
A fair payments system
"A fair distribution of CAP payments (...), fair to farmers in both new and old Member States" should be the guiding principle of CAP reform. The Commission should therefore come up with objective criteria to reduce disparities in direct payments, where the current hectare basis is not sufficient, and to reflect regional diversity. The level of direct payments should be maintained to avoid negative consequences for farmers and consumers and a transitional period should also be agreed to allow farmers to adapt to changes, MEPs agreed.
Moreover, to avoid over-production crises, some specific instruments to manage production capacity should be retained, so as to ensure sustainable growth, said the committee.
Competitive agriculture...
The high food safety, environment, social legislation and animal welfare standards that Europe's farmers must meet should be rewarded, say MEPs. (CA 21) Imports from third countries should meet the same criteria with due respect for WTO rules, and traceability should be improved to allow consumers make an informed choices, they add.
...with a strong quality policy...
Food quality policy is also crucial to improving the sector's competitiveness, says the committee. Geographical indications of origin need to be strengthened and enforced, so as to allow the EU to keep its leadership in this area, through protection and promotion instruments, it adds.
...can guarantee fair returns to farmers
Increased competitiveness would also allow farmers to cover costs, respond to market signals and earn stable returns. To ensure fair revenues to the farming community, the committee proposes strengthening producers' bargaining power in the food supply chain vis-à-vis the retailers and other players and improving price transparency.
Crisis safety net
To take account of market developments and particularly of extreme price volatility and subsequent crises, the committee calls for a safety net mechanism, to include public and private storage and intervention, backed by instruments specifically designed to increase price stability. It also proposes new measures, such as creating futures markets or a harvest risk insurance policy to cope with extreme climate conditions.
Rural development still essential
To counter abandonment of land, ensure the survival of EU agriculture and promote green growth, rural development must remain an essential aim of the future CAP and the current two-pillar structure (production support and rural development) should be maintained, says the committee. Agriculture urgently needs to attract young farmers and women, adds the committee, suggesting that this could be achieved through favourable loans for investment to meet high start-up costs and overcome difficulties in accessing credit.
