This means, for the Council, that it has now the political mandate to kick-off negotiations with the European Parliament, and for the European Parliament that its negotiating team is now ready to start talks with EU ministers.
In 2018, the European Commission put forward its Future Common Agricultural Policy (CAP) proposal, aiming at making the EU farm policy more sustainable, resilient and flexible so that it can continue to deliver food security across the EU.
Commission's proposal consisted of three regulations: the CAP strategic plan regulation, the Horizontal regulation, and amendments to the Common Market Organisation (CMO) regulation.
What is the current state of play after the latest actions decisive for the Future CAP and before the next rounds of negotiations?
Key elements of the Commission proposalA new green architecture
For 2021-2027, at least 30% of total EU expenditure will contribute to climate action. The CAP should contribute to this objective with 40% of its overall expenditure.
The Member States will be obliged to demonstrate, in their CAP strategic plans, how they will achieve a greater level of ambition than at present in terms of environment and climate objectives through the “no backsliding” principle.
The enhanced conditionality proposed by the Commission links direct payments and certain rural development measures to a new way of working, with more environment- and climate-friendly farming practices and standards known as 'Statutory Management Requirements' (SMRs) and ‘Good Agricultural and Environmental Conditions' (GAECs).
A completely new feature are the so-called mandatory eco-schemes in the first pillar, which are annual commitments and payments meant to reward farmers for going even further in the implementation of sustainable agricultural practices (e.g. agroecology, precision farming, carbon farming).
Finally, the Commission proposes the ring-fencing of 30% of the expenditure in rural development for environmental and climate management commitments without payments for areas with natural constraints.
Through such measures, the CAP will place agriculture at the heart of the European Green Deal, as well as the EU's ambitious biodiversity and farm to fork strategies.
A better targeting of direct payments: the income support will remain an essential part of the CAP and direct payments will continue to be based on the farm's size in hectares. However, the future CAP must prioritise small and medium-sized farms and encourage young farmers to join the profession.
This is why the Commission has proposed:
- a higher level of support per hectare for small and medium-sized farms (redistributive payment);
- to reduce the share of direct payments received above €60,000 per farm and to limit payments at €100,000 per farm (capping), with a view to ensuring a fairer distribution of payments;
- a minimum of 2% of Member States' direct payments envelopes for young farmers, to be spent on dedicated measures under both pillars of the CAP, and measures facilitating access to land and land transfers;
- EU countries having to ensure that only genuine farmers receive support.
A new way of working: strategic plans and performance-based approach
The European Commission proposes to simplify and modernise how the CAP works, shifting the emphasis from rules and compliance towards results and performance.
National governments will have to produce a CAP strategic plan, analysing their specific situation in terms of strengths, weaknesses, opportunities and threats (SWOT analysis) and linking it to their needs. Based on this analysis, member states propose how to implement the relevant CAP instruments to achieve the CAP objectives on the ground. The Commission will assess and approve the plans for the budgeting period, while reviewing Member States' performance based on key indicators on a yearly basis.
Farmers are at the heart of Europe's rural communities, providing vital public goods.
The future CAP proposes to develop, support and invest in our rural communities, by:
- helping new generations of farmers to join the profession, through encouraging knowledge transfer from one generation to the next and improving access to land for young farmers;
- promoting employment, growth, social inclusion and local development in rural areas, including bio-economy and sustainable forestry;
- improving the response of EU agriculture to societal demands on food and health, including safe, nutritious and sustainable food, food waste, as well as animal welfare;
- providing continued support for rural communities through the smart villages initiative and community-led local developments under the LEADER programme.
On 19-20 October 2020, the AGRIFISH Council met to discuss the future CAP. With a focus on the green architecture of the CAP reform, the discussions have been based on the compromise texts for each regulation, as prepared by the German presidency:
- Compromise text on strategic plans 11869/20+ ADD 1
- Compromise text on horizontal regulation 11604/20
- Compromise text on common market organisation 11241/20
On 21 October, the Council reached a General Approach, which is a result of negotiations and work conducted over the last two and a half years and under five presidencies.
The general approach was endorsed by all Member States except Lithuania, who voted against, and Latvia, Romania and Bulgaria that abstained.
Below, the main components of the compromise:
New green architecture
Changes in the coverage of conditionality (notably in relation to carbon sequestration and biodiversity) and by excluding small farmers from specific GAECs and foreseeing for them a simplified system for controls and penalties to reduce administrative burden;
Setting a ring fencing of 20% of the direct payment budget for eco-schemes, assorted by various flexibility clauses to avoid Member States losing direct payment funds if the new eco schemes' funds are not fully used.
Ring fencing of 30% of rural development funds for climate and environment, including aid for areas with natural constraints.
Better targeting of direct payments
Endorsement of the decision taking by the Heads of State and government in the European Council of July 2020 rendering capping (and reduction of payments) voluntary;
Making the genuine farmer clause optional for Member States and more flexible in substance.
Strategic plans and performance-based approach
The performance review will take place only twice in the programming period and only subject to a limited set of indicators, not covering all CAP expenditure and interventions, in particular not all relating to the Green Deal.
The agreed General Approach will be the Council's negotiating position once the co-legislators enter into the negotiation phase, the trilogues.
AGRIFISH Council meeting, 19-20 October 2020: Video recording: press conference 20/10/2020 | Transcription of introductory remarks by Commissioner Wojciechowski at the press conference | Press statements by German presidency and delegatesTimeline of the Future of the CAP post 2020 Results of European Parliament plenary 19 – 23 October 2020
During the Plenary session of 19-23 October 2020, a joint debate and voting sessions have been scheduled on the three regulations for the future CAP.
Around 600 amendments for the three regulations (around 460 amendments for the Strategic Plan regulation) have been tabled and MEPs adopted last Friday their position on the post-2022 EU farm policy reform.
The EP negotiating team is now ready to start talks with EU ministers.
A block of compromise amendments on the ‘green architecture' in the CAP Strategic Plan regulation from EPP, S&D and ERC was adopted. This includes:
- in relation to conditionality, certain requirements are eliminated (notably on animal identification and tracing);
- ring fencing of 30% of direct payments for eco-schemes;
- 35% for green spending within the rural development framework including areas with natural constraints;
- a general revision clause for CAP plans in 2025, to adapt these to climate and environment legislation.
Better targeting of direct payments: the Parliament supports the Commission proposal on capping, reducing payments to bigger farms, supporting small and young farmers.
Strategic plans and performance-based approach: the Parliament has departed from the performance-based approach of the Commission proposal by introducing compliance elements and rendering the performance review multiannual.
Parliament pushed for tailor-made measures to help farmers deal with risks and potential future crises but also for higher sanctions when someone repeatedly infringes rules, e.g. on environment or animal welfare. This should cost farmers 10% of their entitlements (up from today's 5%). MEPs also want an ad-hoc EU complaints mechanism to be set up.
Results of the vote and more information
The strategic plans regulation was approved by 425 votes in favour to 212 against, with 51 abstentions.
The regulation on common market organisation was approved by 463 votes in favour to 133 against, with 92 abstentions.
The regulation on financing, management and monitoring of the CAP was approved by 434 votes in favour to 185 against, with 69 abstentions.
Background
The last reform of the EU farm policy, established in 1962, dates back to 2013.
Current CAP rules expire on 31 December 2020. They should be replaced by transitional rules until the ongoing CAP reform is agreed and approved by the Parliament and Council.
European Parliament plenary session, 19-23 October 2020: Background note on the approved text | Statements by Parliament's chief negotiators | Plenary session: Joint debate on the CAP reform, 20/10/2020
