Discussion on CAP delays implementation

Like the Common Agricultural Policy (CAP) itself, the debate on this is immensely complex. So much depends on it that the introduction can sometimes be postponed by 1 or 2 years. In some respects, the CAP has become a hot political issue.

The introduction of the new CAP is scheduled for 1 January 2021. However, because the European elections will be held in May 2019, the European Commission is already trying to reach an agreement. Which writes Klaas Johan Osinga, senior advisor in Brussels for LTO Nederland.

Smaller budget
the future GLB There is still a large number of uncertainties, and Brexit is one of them. The required budget will deteriorate in any case; for the Netherlands by almost 1%, which is considerably more including inflation correction (4% to 10%). If there is no deal with the United Kingdom, the European budget will lose €15 billion in one fell swoop. Tensions with countries such as Italy, Poland and Hungary are also not helping the process.

The position of LTO Nederland and the Brussels interest representatives (including Copa and Cogeca) is to keep the budget the same in the European budget. However, it now looks like the CAP's share will go from 38% to 28,5%.

Many amendments
Many meetings have already taken place on the details of the new CAP and at the end of November the first items will be on the agenda of the European Agricultural Council. MPs can table amendments until December 9. No fewer than 7.000 amendments were submitted to a previous report, which means that a quick agreement is not considered realistic. The European Parliament's Environment Committee must also provide input.

Theoretically, the new policy can still be voted on in April. Everything has to go well for this, including a budget deal and a soft Brexit. That is not plausible. The individual Member States have a lot of homework to do, because they have to do their own plan write; the necessary information for this is still lacking. It is also not clear how the pillar funds will be distributed.

Abolition of payment rights
Minister Carola Schouten (Agriculture, Nature and Food Quality) announced on Friday 9 November in a letter to Parliament that the new CAP contains a system without payment entitlements. From 2019 there will be a so-called 'flat rate': each payment entitlement yields the same hectare premium. Historical differences disappear. The need for payment entitlements has thus disappeared.

In the letter, Minister Schouten says that information is now being given, because the current rights represent an economic value. These are negotiable and you can write off them. The abolition of payment entitlements (formerly payment entitlements) greatly simplifies the work of the Netherlands Enterprise Agency (RVO.nl). This should also reduce administrative burdens for the farmer.

Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.

n.vanderboom@boerenbusiness. Nl

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