The more budget that disappears to the second pillar of the European budget, the greater the chance, according to CDA MEP Annie Schreijer-Pierik, that little remains of the existing payment entitlements, which will be paid early this month due to the corona crisis to those who have signed up for this. reported.
Moreover, in the EU multi-year budget 2021 – 2027, adopted last week, no less than 40 billion euros less has been provided for the Common Agricultural Policy (CAP). That is 10% less compared to the current financing of the CAP, even if the resources from the corona crisis recovery fund are included.
Earnings model eco-scheme insufficient
CDA MEP Annie Schreijer-Pierik says that she and her employees and a GLB specialist from Wageningen Economic Research will estimate what this agreement 'after the decimal point' will mean for agricultural companies in the Netherlands, although the details are not yet known. But there is no doubt for the CDA MEP that the hectare allowances will fall by tens of euros per hectare, even though it can differ greatly per region and company.
Schreijer-Pierik, who attracted a lot of preferential votes in the agricultural East Netherlands, among other places, advocates fair compensation for social services by farmers and horticulturists who will be given an increasingly important place in the CAP. "In my opinion, the agreement of the European Council of Ministers contributes too little to a good revenue model for green and blue services for the Dutch countryside. A majority of the European Parliament (EP) and the Agriculture Committee, on the other hand, want the agricultural budget at the current level. which is essential - also in the Netherlands - for a real performance-related pay for participation in CAP eco-schemes by farmers and horticulturists."
Will it be 15 or 40% less?
In 2019 an average Dutch hectare premium of €376,61, including 30% for existing greening measures. Schreijer-Pierik does not expect any major changes in the transition period up to and including the years 2022 and 2023. After that, she says, it is difficult to say what will remain of the existing hectare allowances.
Prime Minister Rutte and the other European government leaders want to allow a transfer of 25% from the first to the second pillar and even up to 15% extra on top of that if it were to agri-environmental or climate measures. Schreijer-Pierik estimates that this would mean that 25-40% of the current hectare amounts will no longer end up directly on the farm. The Christian Democrat group in the European Parliament, of which the CDA is a member, does not want to have more than 15% transferred to the second pillar at most.
Basic premium with few requirements
What remains of the hectare premium, which is split into a basic payment (primary income support) and into so-called eco-schemes, depends on the ratio between these two factors that is agreed upon. This is still being negotiated in Brussels. Minister Schouten's objective is to have as many farmers as possible participate in the eco-schemes. But if the total amount of basic premium and eco-schemes becomes too small, the risk increases that farmers will forgo participating in the CAP altogether.
Schreijer-Pierik: "My aim is to make the regulations (rules, so-called "conditionality") for the basic payment (primary income support) less detailed and strict, so that customization and performance-related pay (top up) will be possible for the eco-schemes. Only in that case can central government and provinces 'match' extra subsidies, because it would be considered illegal state aid if it was already included as a legal requirement in regulations (conditionality). Eco-schemes for "green-blue services" for climate, biodiversity, the environment and water in the first pillar, together with the second pillar, should mainly be able to land on family farms, as a revenue model.However, it cannot be the case that for lower amounts of agricultural subsidies more social services are expected."
Difference Between Eastern and Western Europe
Schreijer-Pierik notes that the perception of the new CAP in Eastern Europe will be very different from that in Western Europe, given the large differences in the existing payment entitlements per hectare and the differences in income between the two parts of the European Union. In Eastern Europe, revenues from the EU budget for agriculture and climate will increase on balance.
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