world olive oil output down 14%

82 Pages·2017·6.29 MB·English

May 2018 – No. 266
Neonic ban on all Direct payment cap of €60 000? p.7
outdoor crops The Commission is mulling the introduction of capping
direct payments at €60 000 per beneficiary per year,

obligatory redistributive payments (from bigger to
EU Member States
smaller &/or medium-sized farms) & the preparation of
voted on April 27 to
comprehensive CAP support plans by Member States
endorse a Commission
for their entire territories, according to a leaked 95-
proposal seeking a
page draft seen by AGRA FOCUS this month.
complete ban on the

outdoor use of three
active substances, Move to ban UTPs in food chain p.13
clothianidin and The Commission unveiled a proposal for a Directive to
imidacloprid (Bayer) & outlaw the most damaging Unfair Trading Practices
thiamethoxam from (UTPs) in business-to-business relationships in the
Syngenta, without food supply chain. The scope of the draft legislation
exceptions (e.g. in has been limited to cover small & medium-sized
pelleted beet seed). suppliers - not more than 250 employees with an
The restrictions on annual turnover of €50 million - in the food supply
these neonicotinoids go chain.
beyond the partial ban
in place since 2013 & Transparency in food safety science p.20
would limit the use to A proposal to enhance transparency of scientific
permanent green- studies in the area of food safety should allow better
houses, where public access to industry data used by the European
exposure to bees is not Food Safety Authority (EFSA) when assessing a
expected. product. It follows the European Citizens’ Initiative
(ECI) calling for a ban on glyphosate, a request the
[See p.22] Commission did not take up.

Guidelines on waste food as feed p.24

DG SANTE published guidelines on turning food no
longer intended for human consumption into animal
feed. The 17-page text is designed to help national &
local competent authorities & food chain operators to
apply the relevant EU legislation, while reducing food
waste.

EU & Mexico strike trade deal p. 37
The EU & Mexico reached a bilateral accord on trade,
as part of a broader, modernised EU-Mexico Global
Agreement, on April 21, paving the way for significant
gains for EU agri-food exporters.
ANNEX TO LEAKED DRAFT PROPOSAL ON FUTURE CAP
RULES ON CONDITIONALITY
SMR: Statutory Management Requirement
GAEC: Standards for good agricultural and environmental condition of land
Areas Main Issue Requirements and standards Main objective of the
standard
Climate and Climate GAEC 1 Maintenance of permanent grassland General safeguard
environment change based on a ratio of permanent grassland in against conversion to
(mitigation of relation to agricultural area other agricultural uses
and to preserve carbon
adaptation stock
to)
GAEC 2 No conversion or ploughing wetland and Protection of carbon-
peatland rich soils
GAEC 3 Ban on burning arable stubble, except for Maintenance of soil
plant health reasons organic matter
Water SMR 1 Council Directive 91/676/EEC of 12
December 1991 concerning the protection
of waters against pollution caused by
nitrates from agricultural sources (OJ L
375, 31.12.1991, p. 1):
Articles 4 and 5
GAEC 4 Establishment of buffer strips along water Protection of river
courses (1) courses against
pollution and run-off
GAEC 5 Where use of water for irrigation is subject Sustainable
to authorisation, compliance with management of water
authorisation procedures consumption for
irrigation
GAEC 6 Use of Farm Sustainability Tool for Sustainable
Nutrients1 management of
nutrients
 2018 Agra-Europe AGRA FOCUS May 2018

INDEX

EU NEWS EU NEWS
FARM COUNCIL: UTPs & food waste 2 IN BRIEF: CAP & livestock pollution 27
Broad support for UTPs proposal 2 NGO “green” CAP budget plea 27
Fight against food waste 3 Lobby bemoans slow plant breeding reg 27
Transparency of science in EU food safety 4 Boost biofuels to help protein strategy 28
ASF eradication, common EU undertaking 5 Agro-ecology for healthier food systems 28
Wildlife in animal disease management 6 Food chain data-sharing code 28
Informal: future CAP, generational renewal 6 Three-crop rule derogations 29
German call for SMP stock reduction 29
FUTURE CAP: Aid capped at €60 000? 7 ECJ: Polish logging illegal 30
More clarity on future CAP proposals 7-9 New measures to tackle plant pests 30
National CAP support plans 9 Direct aid application deadline extended 31
Small farmers “top priority”, Hogan 10 PDO for Lough Neagh Pollan 31
MFF – 1.13-1.18% GNI contribution 11 Approval of Ojah takeover 31
French, German farm unions’ budget plea 11
EIB: new finance for agri & bio-economy 12
NEW TECHNOLOGIES
UTPs in food supply chain proposal 13
UTPs plan welcomed as “first step” 13 Split vote on Biotech sugarbeet at appeal 32
OECD conference: Innovation is key 14 Call to end animal testing of GMOs 32
Scottish farm union on weather impact 14

NATIONAL NEWS
EP NEWS: Call for well-funded CAP 15
AGRI MEPs welcome UTPs proposal 16
UK seeks Brexit agricultural revolution 33
EP calls for protein crop promotion 18
UK must keep envi measures, Barnier 33
EP backs CO cuts from farming 18
2 UK BSE controls inspected by Chinese 34
EP seeks 50% food waste cut by 2030 19
No to German unilateral glyphosate ban 34
PEST Cttee gets down to business 19

MEPs to adopt new organic regulation 20
BEYOND THE EU
SANTE UPDATE: Scientific transparency 20
US draft 2018 Farm Bill 35
“New Deal for Consumers” (dual quality) 21
US wheat groups hopeful on TPP 35
Consumer welcome, industry concern 22
US pork allowed into Argentina 36
Neonic ban on all outdoor crops 22
China retaliation hits US oilseeds market 36
Mixed reactions to neonic ban 23
USDA to shield farmers from China row 36
Guidelines on using waste food as feed 24
EU-Mexico reach trade deal 37
EU bans meat from 20 Brazilian plants 25
EU sugar cane refiners & trade deals 38
Work with hunters to address ASF 25
Move to close Japan & Singapore deals 38
Listeria “probably” linked to frozen corn 26
EU-Iceland trade deal enters into force 39

PERSONNEL: European Milk Board head 26
Lithuanian AG Minister steps down 26 MARKETS

DG AGRI short-term market outlook 41

Food prices rise in March, FAO 41

Record cereal production & stocks, FAO 42

China opens to Irish beef 42

NL tops EU farmland prices 43
 2018 Agra-Europe AGRA FOCUS May 2018

REVIEW

COMMISSION MULLS INTRODUCTION OF CAPPING AID
The EU’s executive is mulling the introduction of capping direct payments for farmers at €60
000 per beneficiary per year & obligatory redistributive payments (from bigger to smaller
&/or medium-sized farms), according to a leaked draft of the proposals on the future EU farm
policy circulating this month. The move is a highly political one & is unlikely to go down well
with Member States & farm lobby organisations alike. The 95-page draft text on CAP support
plans & rural development programmes is currently the subject of an internal consultation
within the Commission services & still subject to change.
At a time of unprecedented pressure on the Community budget & increased scrutiny of the
CAP’s overall share, the Commission is pushing for a more balanced distribution of income
support among farmers. As previously mooted in early leaked drafts of the CAP
Communication last autumn, DG AGRI officials float the idea of compulsory capping, with a
maximum amount per beneficiary at €60 000 for a given calendar year. Under the proposed
legislation, Member States shall subtract the “salaries linked to an agricultural activity
declared by the farmer including taxes & social contributions related to employment” as well
as labour conducted by family members. The draft proposal is due to be approved by the
College of Commissioners on May 29 (in the margins of the Strasbourg EP plenary session).
The formal presentation of the plans is expected to take place on June 1 - ahead of the
Informal Farm Council in Sofia, Bulgaria (June 3-5), where the future CAP & generational
renewal are up for discussion. All eyes are now on Commission long-term budget plans –
mapping out expenditure from 2021-2027 - due to be unveiled on May 2. It is only at that
point that we will have a sense of the shape & size of the farm budget post-2020.
On the next Multi-annual Financial Framework (MFF) for the EU-27, the Commission
is expected to include a 5% cut to the overall CAP budget, while direct payments to farmers
will be reduced by less than 4%. Under the financial perspectives post-2020, Member States
will be requested to contribute 1.114% of Gross National Income (GNI). In terms of the next
steps, the Commission is pushing for a quick adoption before EP elections next May (23-26) &
the Sibiu Summit scheduled for May 9, 2019, which seems rather optimistic, with talks most
likely to drag on beyond 2019. Speaking at a Citizens’ Dialogue in Kilkenny on April 20, EU
Farm Commissioner Phil Hogan said “protecting the small & medium sized farmer” remains a
top priority in on-going budget negotiations. During his address to over 400 farmers in his
native city, the EU Farm chief insisted small & medium farmers “were the backbone of
Europe’s food production & rural communities”. He described EU farm policy as “a European
success story”, which represented “excellent value for money for our citizens” & guaranteed
the best food quality & safety, while “keeping our rural areas sustainable & attractive”.
In SANTE news, Member States endorsed a Commission proposal seeking a complete
ban on the outdoor use of three active substances - Bayer’s clothianidin & imidacloprid &
Syngenta’s thiamethoxam (neonicotinoids), without exceptions (e.g. in pelleted beet seed).
The restrictions - voted through on April 27 - go beyond the partial ban in place since 2013 &
would limit the use of the three substances to permanent greenhouses where exposure to bees
is not expected.
Elsewhere this month, Hogan unveiled a proposal for a Directive to outlaw the most
damaging Unfair Trading Practices (UTPs) in business-to-business relationships in the food
chain on April 12. Speaking to reporters, the Irish Commissioner said “UTPs are practices that
run contrary to good faith or fair dealing”. The proposal seeks to “protect the weakest links in
the chain, thereby strengthening the food supply chain as a whole”, Hogan outlined. The scope
of the legislation has been limited to cover small & medium-sized suppliers – not more than
250 employees with an annual turnover of 50 million – in the food supply chain, which was
deemed “more than proportionate at this stage”. With the Bulgarian Presidency entering its
final weeks, it looks as if agri-related policies are kicking off in earnest – ahead of the more
conservative & populist Vienna taking the helm on July 1.
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May 2018 AGRA FOCUS  2018 Agra-Europe

EU NEWS

FARM COUNCIL

POSITIVE RESPONSE TO UTP PLAN, MORE ACTION NEEDED
ON FOOD WASTE
All EU delegations - with the exception of the UK & DK - backed the Commission proposal
seeking to outlaw the most damaging Unfair Trading Practices (UTPs) in the food supply
chain at the April 16 Council meeting in Luxembourg. The other key substantive item on the
agenda of the 4th Council under the Bulgarian Presidency was ways to tackle food losses &
food waste, with Ministers agreeing that the future CAP has a greater role to play. The
monthly gathering kicked off just after 10am under the chairmanship of Bulgarian Minister for
Agriculture, Food & Forestry Rumen Porodzanov. Following the approval of ‘A’ items, EU
Farm Commissioner Phil Hogan presented the proposal for a Directive seeking to stamp out
UTPs (in public session) unveiled on April 12. From around 11.40am, Ministers focused their
attention on fisheries-related agenda points inc. the multi-annual plan for demersal species in
the Western Waters & an AOB point raised by the Spanish on the legal interpretation of
Article 15 of the Common Fisheries Policy. After lunch, the Presidency debriefed Council on
the outcome of a TAIEX workshop on the ‘Role of wildlife in animal health management’ held
in Sofia (March 8-9). The Polish delegation provided feedback on a conference on African
Swine Fever (ASF) that took place in Warsaw on March 26, while the Danes presented a set of
common measures to eradicate ASF in the EU. Meanwhile, the EU Health chief Vytenis
Andriukaitis updated Council - in public session - on the Regulation on the transparency &
sustainability of the EU risk assessment in the food chain tabled on April 11 [see below, p.20].
From 3.30pm, Ministers held a table round on food waste & food losses (web-streamed),
ahead of the plenary vote on the Circular Economy (four proposals on waste management) on
April 18. The next EU platform on food losses & food waste will take place in the margins of
the 22nd edition of the International AgroBalt 2018 agricultural fair in Vilnius next month
(May 24). Next month’s Council meeting, originally pencilled in for May 14, has been
cancelled due to the light agenda. EU Ministers will next meet at the Informal Farm Council in
Sofia in early June (3-5).
*For further info on the agenda points listed below, enter the number provided under ‘Public
Register’ at goo.gl/ybwNtq;

“NEAR UNANIMOUS” SUPPORT FOR PROPOSAL TO CURB
UTPs IN FOOD SUPPLY CHAIN
EU Farm Commissioner Phil Hogan welcomed the “near unanimous support” shown by
Agriculture Ministers for the proposal to outlaw the most damaging Unfair Trading Practices
(UTPs) in business-to-business relationships in the food supply chain at the April 16 Council.
Speaking after the 1½ hour exchange of views, the EU Farm chief said he “particularly
welcomed the support shown by Ministers for the Commission’s decision to propose a
Directive, which recognises the fact that some 20 Member States already have national
legislation in the area of UTPs in the food chain”. For his part, Bulgarian Agriculture Minister
Rumen Porodzanov said it was “high time to restore the balance in the food supply chain, as
we want to make sure that small farmers & retailers operate in a fair & healthy trading
environment, where no abusive or unfair practice is tolerated”.

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 2018 Agra-Europe AGRA FOCUS May 2018

During his introduction, Hogan recalled the main tenets of the legal initiative inc. a short list
of prohibited commercial activities that aims at establishing a minimum standard of protection
across the EU. These include banning late payments for perishable food products (maximum
30 days), last-minute order cancellations for perishable goods, unilateral or retroactive
changes to contracts & forcing the supplier to pay for wasted product. Four further measures
are only permitted if agreed in advance by both parties inc. the return of unsold food products
to a supplier & so-called ‘hello money’. The ambition of the proposal was “not to cover all
possible UTPs, but - at this stage - to focus on manifestly unfair UTPs, which have a clear
negative impact on the efficiency of the food supply chain”, Hogan stated. “An undue burden
has been placed on the weakest link in the chain &, in most cases, this is the farmers & small
& medium-sized food companies … with this proposal, we are seeking to protect the weakest
links in the chain, thereby strengthening the food supply chain as a whole”, he added. The
proposed move “does nothing to prevent Member States from covering all companies - large &
small - in their national legislation”, he added.

During the first exchange of views, the majority said it was a “good basis for discussion” & a
“step in the right direction”. Spanish, Hungarian & Estonian Ministers would like to see
further improvements on the scope of the legislation, while French Minister Stéphane Travert
stands ready to “fine-tune” certain provisions such as the “legal visibility of international
buying practices”. Ireland’s Michael Creed said any common minimum standard of protection
must “complement & not compete with national legislation”. But the UK’s Rory O’Donnell
expressed scepticism about the need for EU-wide legislation, while his Danish colleague
Esben Lunde Larsen said there was already a high-level of cooperation among farmers to
enable a functioning supply chain in his native Denmark.

The “responsibility for progressing this legislation is now a matter for the EP & Council”,
Hogan concluded, expressing his hope “they would move quickly to achieve a political
agreement as soon as possible … given the support shown by the two institutions for the
proposal”. Member States will hold a technical discussion on the dossier at the Special
Committee on Agriculture (SCA) on April 23, while two working parties are pencilled in for
April 30 & May 23.

EU HEALTH CHIEF URGES MINISTERS TO FIGHT “ABSURDITY”
OF FOOD WASTE
EU Farm Ministers broadly agreed that progress had been made in the implementation of the
June 2016 Council Conclusions on food losses & food waste, but more needs to be done at
national & EU level to meet the Sustainable Development Goal (SDG) of halving food waste
(at retail & consumer level) by 2030. During the debate, the Presidency showed a short video
clip that indicated around one-third of all food produced for human consumption is lost or
wasted between the farm & the fork causing 8% of global GHG gases and costing the world
economy €850 billion. The Bulgarian Presidency tabled two questions to steer the debate:

i) How do you assess the progress made at EU level & at national level regarding the
2016 Council decisions?
ii) Do you think that the pace is sufficient or further actions are still needed to obtain the
necessary speed to meet the commitments to reduce food losses & food waste?

During the tableround that followed, a number of delegations - BE, MT, IT & EL - said the
future CAP post-2020 could play a greater role in curbing food losses & food waste, with
Greek Minister Evangelos Apostolou hailing the role of the new proposal on Unfair Trading
Practices (UTPs) as a case in point. A number of delegations - EE, SE, LU PL, HU, CZ, DE, &
HR - called for a joint methodology to measure levels of food waste to get comparable data
between Member States & uniform definitions set at EU level.
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May 2018 AGRA FOCUS  2018 Agra-Europe

In response, EU Health chief Vytenis Andriukaitis said “we should work towards the
EU leading global efforts in fighting food waste – with active food waste prevention
programmes in all Member States”. He described the EU Platform on Food Losses & Food
Waste, established in 2016, as the “cornerstone” of the project. The Lithuanian Commissioner
said tackling the issue remains one of his “top priorities since the beginning of the mandate” –
getting “as close as possible to our SDG target & make sure that the Union becomes a global
model in the fight against this economic, ethical & environmental absurdity that is called
‘food waste’”. The publication of a report on date marking practices, EU guidelines to
facilitate food donations & guidelines to facilitate the safe use of former foodstuffs in feed
(published on April 13) was key, he added. The common methodology to monitor food waste
levels will be finalised at the end of this year & ready by March 2019, Andriukaitis confirmed.
On the future farm policy post-2020, the College is “reflecting how a reformed CAP could
help reduce food losses & waste by stimulating more efficient production, processing &
storage practices and the evolution towards a circular bio-economy”.

EU platform on food waste takes place in Vilnius: The next EU Platform on Food Losses &
Food Waste will take place in the margins of AgroBalt 2018 in Vilnius (May 24). The 22nd
International Exhibition for Agriculture & the Food Industry (May 23-26), hosted by
Lithuanian Farm Minister Bronius Markauskas, will also include a high-level political forum
on food losses & food waste inc. Andriukaitis, FAO chief José Graziano da Silva & China’s
Minister for Agriculture Han Chungfu.

EU FARM MINISTERS WELCOME GREATER TRANSPARENCY IN
AREA OF FOOD SAFETY
EU Farm Ministers broadly welcomed a proposal seeking to enhance transparency of scientific
studies in the area of EU food safety, with greater access to industry data used by the
European Food Safety Authority (EFSA) when assessing a product. During his address in the
chamber, EU Health chief Vytenis Andriukaitis said the initiative on ‘Transparency &
sustainability of the EU risk assessment in the food chain’ is seeking a “targeted revision of
the General Food Law designed to address a number of areas where a need for improvement to
the basic model had been identified”. The initiative follows the European Citizens’ Initiative
(ECI) calling for a ban on glyphosate. Under the proposed legislation, all studies submitted to
EFSA for risk assessment “will be automatically published & accessible to anyone interested
for search, download or print”, the Lithuanian Commissioner outlined, insisting on safeguards
“ensuring the protection of verifiable confidential information & the respect of intellectual
property rights or data exclusivity rules”.

It also seeks to involve Member States’ scientists more closely in the authorisation procedure
“with the aim to create a pool that EFSA could use as a basis for its selection process”. The
EU Health chief reiterated that the “independence of EFSA is in no way undermined or
weakened by this initiative, which rather aims to enhance its transparency & sustainability”.
“Our proposal will leave no space for another conspiracy theory,” he said, inviting NGOs &
scientific experts to participate on various panels. Andriukaitis confirmed EFSA’s budget
would be gradually increased by €62.5 million per year to allow it carry out a wider role
(current annual budget around €80m). He called on delegations to “reach an early agreement
so that its benefits can be realised as soon as possible”. Only a handful of delegations took to
the floor (LU, FR, AT, SE, SI & DK) hailing the importance of transparency, independence &
communication. Danish Minister Esben Lunde Larsen described the current EU risk
assessment model as the “cornerstone of a well-functioning market in the EU … where less
than a handful of products have created controversy”. The 39-year old Liberal politician also
urged against any confusion between risk assessment & risk management.
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 2018 Agra-Europe AGRA FOCUS May 2018

SANTE AOB POINTS

ASF “must be eradicated” Andriukaitis tells Council [*7427/18]: “African
Swine Fever (ASF) must be eradicated,” EU Health Commissioner Vytenis Andriukaitis told
Ministers at the Farm Council in Luxembourg. During a discussion on a paper tabled by
Poland’s Krzysztof Jurgiel on the 6th Ministerial conference on ASF held in Warsaw on March
26, the EU Health chief said these meetings were key “since they have always led to political
& operational conclusions to reinforce the coordination between the affected countries, as
well as to raise awareness for the non-affected”.

The ASF conference was attended by 27 countries, including most Member States as well as
Russia, Belarus & Ukraine. Andriukaitis headed a delegation from the Commission. The
meeting heard presentations from PL, LT, EE, LV, CZ, & RO and from Russia, Ukraine,
Belarus on the current situation and current & planned activities to combat the disease. The
German delegation gave a presentation on activities, as a country so far free of ASF, to
prevent its arrival. These include securing the farms, reducing the wild boar population &
making information about the threat available to the public. Funding under Horizon 2020
includes work to identify the factors behind the outbreak, developing tools to manage it & the
development of a new vaccine. (Some €3.8 billion has been allocated under Horizon 2020
(2014-2020), for the measure ‘Food Security, Sustainable Agriculture & Forestry, Marine,
Maritime & Inland Water Research & Bio-economy’). During his intervention, Jurgiel said
further financial aid was needed to tackle the virulent disease & called for a regular review of
measures to deal with ASF & risk assessments. The Polish Minister would also like to see
stronger cooperation, particularly between police & customs authorities.

ASF fight must be “common EU undertaking” Council told [*7742/18]:
Tackling African Swine Fever (ASF) must be a “common EU undertaking” as the disease
represents “an imminent threat for all Member States”, according to a paper circulated by the
Danish delegation at the April Council. The virulent disease “is clearly a cross-border
problem,” Danish Minister Esben Lunde Larsen outlined, noting that “the affected Member
States must be assisted as much as possible by the EU & neighbouring countries.” Copenhagen
calls for a deepening of the ASF control & eradication strategy involving, “developing &
applying new tools & insights”. “International experts should be gathered to draft an extended
control & eradication plan for the EU,” authors elaborate, inc. more use of fencing to contain
infected wild boar populations, measures to control the spread via transport & activities to
provide more information on biosecurity in affected areas. (An EFSA scientific opinion on the
feasibility of fencing as a way to tackle the spread of the disease is due in July). Recognising
the support for development of a vaccine under Horizon 2020, Lunde Larsen requests a much
broader research programme on the virus, its spread & its prevention & control. In the longer-
term, Denmark calls for the Common Market Organisation to become more suited to deal with
outbreaks of animal & plant diseases & for the future CAP to give priority to issues related to
animal & plant health. Delegations from SE, EE & LV backed the Danish item, while Greece
called for further financial support for research into the “truly pan-European problem & cross-
border disease”.

In response, Andriukaitis said the requests were legitimate, but called on national delegations
to bring “more concrete ideas to the table”. The Commission has mobilised DG SANTE
services “to the fullest” & has allocated almost €50m to fighting the disease since 2013, he
stated.

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May 2018 AGRA FOCUS  2018 Agra-Europe

Presidency debrief on wildlife in animal disease management [*7564/18]:
The Bulgarian Presidency provided feedback on a TAIEX workshop on ‘The role of wildlife in
animal health management’ that took place in Sofia in early March (8-9). Bulgarian Minister
Rumen Porodzanov & EU Health chief Vytenis Andriukaitis opened the workshop &
emphasised the key role that hunters play in controlling the spread of infectious diseases such
as ASF. The Presidency’s “overarching aim is to identify particular needs & possible ways
forward in relation to wildlife … in animal disease management, taking into account multiple
related aspects such as surveillance, enforcement of practical measures, the economic impact,
training, awareness & preparedness, scientific research & regional strategies”. The 100-strong
audience of specialists threw their weight behind the development of mechanisms to
strengthen cooperation with hunters at national, EU & regional levels, the creation of a forum
or network to exchange expertise & best practices between the competent authorities, vets &
hunters. They also supported further training & awareness campaigns for hunters in order to
promote knowledge & best practice. Good biosecurity practices inc. contact with infected
animals & carcasses, coordinated efforts on research activities regarding wildlife ecology,
surveillance & diagnostics and regional cooperation with neighbouring 3rd countries were also
key, Sofia officials add. The Presidency has pledged to work on the role of wildlife in animal
health management in the Working Party of CVOs, with a document reflecting the outcome of
this topic to be presented to the CVOs on May 15.

INFORMAL FARM COUNCIL – FUTURE CAP & GENERATIONAL
RENEWAL ON AGENDA

The future design of the CAP, with a special focus on generational renewal, will be at the top
of the agenda at the Informal Farm Council in Sofia in early June (3-5), Bulgarian Minister &
current Council chair Rumen Porodzanov confirmed. The latest College agenda indicates that
the proposal on the future CAP will be unveiled on May 29, though sources suggest this date
is still open to change. Speaking at the post-Council press conference, Porodzanov said
“attracting new blood into the farming sector is key ... as is the provision of better education
& training to ensure our future farmers are better qualified”. On the nomination of a ‘single
EU candidate’ for the post of FAO Director-General in 2019, exchanges of information &
informal contacts between Member States & the Presidency will continue over the coming
weeks. The deadline of May 2 is fast approaching for national capitals to inform Bulgarian
officials about their intention to put forward a name, with unconfirmed reports suggesting a
German politician & a Dutch Ambassador might be interested in the post. From the beginning
of May until June 18, the Presidency will lead consultations in the form of “informal bilateral
contacts at political level” with each Member State, with a view to enabling an agreement.
During the Informal Council in Sofia, the Presidency will present the state of play, with a
“possible presentation of the potential candidates”. In the margins of the next Council in
Luxembourg (June 18), delegations will strike an accord on the successful EU bid, allowing
the individual to launch his/her global election campaign with the support of the EU (in
particular the High Representative & the EU Delegations) & Member States. The formal
nomination of the single candidate by the government of the Member State concerned would
take place towards the end of the year/beginning of 2019. The election of the new boss at the
UN agency is pencilled in for June 22-29, 2019, at the 41st FAO Conference. In tandem,
NABU (BirdLife in Germany), the Bulgarian Society for the Protection of Birds (BSPB), the
Association ‘Europe & Us’, BirdLife Europe & the European Environmental Bureau (EEB)
are organising a conference on the implementation & outlook for the CAP in Bulgaria &
Europe. The international workshop on the ‘CAP at a Crossroads - Unity in Sustainability
Makes Strength’ will be held at the Earth & Man National Museum - one of the biggest
mineralogical museums in the world - on June 4-6.

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 2018 Agra-Europe AGRA FOCUS May 2018

FUTURE CAP NEWS

EU EXEC MULLS INTRODUCTION OF CAPPING AID & PROVIDES
CLARITY ON CAP PLANS
The EU’s executive is mulling the introduction of capping direct payments at €60 000 per
beneficiary per year, obligatory redistributive payments (from bigger to smaller &/or medium-
sized farms) & the preparation of comprehensive CAP support plans by Member States for
their entire territories, according to a leaked draft of the proposals on the future EU farm
policy* circulating in late April. The 95-page draft text on CAP support plans & Rural
Development Programmes, currently in the inter-service consultation, also introduces
revamped terminology in the debate inc. Basic Income Support for Sustainability (BISS) inc. a
lump-sum payment for small farmers, Complementary Redistribution Income Support for
Sustainability (CRISS) & Complementary Income Support for Young Farmers (CISYF).

The draft proposal is due to be approved by the College of Commissioners on May 29 (in the
margins of the Strasbourg plenary session). The formal presentation of the plans is expected to
take place on June 1 - ahead of the Informal Farm Council in Sofia (June 3-5), where the
future CAP is up for discussion. With over 30% of farmers aged 65 or over, Bulgarian
Agriculture Minister & current Council chair Rumen Porodzanov is also pushing for an in-
depth debate on generational renewal. The Multi-annual Financial Framework (MFF) beyond
2020, where future farm policy is a key component, is due to be adopted by the College on
May 2.

DG AGRI officials insist on the importance of the CAP in responding to well-established
challenges & realising the Juncker priorities, citing, in particular, employment creation,
growth & investment, harnessing the potential of the bio-economy in rural areas, bringing
research & innovation out of the labs and onto fields & markets, fully connecting farmers &
the countryside to the digital economy. Echoing some of the key elements presented in the
CAP Communication on the ‘Future of Food & Farming’ (November 29, 2017), they note that
farm aid under the newly-established support plans will be targeted at the achievement of the
following general objectives:

a) to foster a smart & resilient agricultural sector ensuring food security;
b) bolster environmental care & climate action, which contributes to the environmental
& climate objectives of the EU;
c) strengthen the socio-economic fabric of rural areas.

These broad objectives “shall be complemented by the cross-cutting objective of fostering
knowledge, innovation & digitalisation in agriculture & rural areas”, while ensuring the
“simplification & performance of CAP support”, they add.

Compulsory capping maximum €60 000 per beneficiary?: At a time of
unprecedented pressure on the Community budget & increased scrutiny of the CAP’s overall
share, the Commission is pushing for a more balanced distribution of income support. As
previously mooted in early leaked drafts of the CAP Communication last autumn, DG AGRI
officials float the idea of compulsory capping, with a maximum amount per beneficiary at €60
000 for a given calendar year. Under the proposed legislation, Member States shall subtract
the “salaries linked to an agricultural activity declared by the farmer inc. taxes & social
contributions related to employment” & “the equivalent cost of regular & unpaid labour linked
to an agricultural activity practiced by persons working on the farm concerned, who do not
receive a salary (or who receive less remuneration than the amount normally paid for the
services rendered) but are rewarded through the economic result of the farm business”. To
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