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European Parliament adopts CAP package

23 October 2020 - Kimberly Bakker

The European Parliament adopted the new Common Agricultural Policy on Friday 23 October. Several Dutch MEPs (including Jan Huitema, Annie Schreijer-Pierik and Bert-Jan Ruissen) are satisfied with the approval. LTO Nederland is also positive, although the representative calls it an ambitious plan.

The European member states reached on Wednesday October 21 an agreement has already been reached on the implementation of the Common Agricultural Policy (CAP) for the period 2021 to 2027, in which more attention must be paid to nature, the environment and the climate. That is why it has now been decided to reserve 20% of direct income support for entrepreneurs who make efforts for the benefit of the environment, climate or nature. Parliament wants 30% to be reserved for these schemes from now on. In short: farmers receive a subsidy if they meet the ecological objectives of their member state. The ecological provisions are determined at national level. In the Netherlands, this most likely concerns themes such as meadow bird management, soil management and investments in animal welfare.

In addition, the new agricultural policy pays extra attention to young agricultural entrepreneurs. For example, Member States in the European Union are obliged to spend a percentage of the budget for direct support on young farmers. In addition, the targeted investment support for young agricultural entrepreneurs also counts for that percentage. In the new agricultural policy it will also remain possible for agricultural collectives to work on agricultural nature and landscape management on a subsidized basis.

Criticism from parties
After the various compromises came out on Wednesday 21 October, the reformed agricultural policy came into sharp effect under fire to lay down. Various nature organizations and various political parties (including GroenLinks) were of the opinion that these compromises ensure that the Green Deal is no longer feasible. They also believe that the current CAP has been watered down too much and is therefore no longer as green as initially desired by these organizations and parties. 

On the other hand, parties such as the Forum for Democracy believe that Europe still interferes too much with how farmers should farm. "What started with the aim of guaranteeing a stable food supply, with good prices for consumers and farmers, has grown into a regulatory system to push through a green, ecological agenda," the party reported Wednesday after the meetings.

Jan Huitema (VVD) is therefore pleased that flexibility is now being incorporated into the policy. "For years, European farmers have been expected to implement the same greening measures. The European Court of Audit has already reported that this method of greening has failed. European agriculture is anything but a one-size-fits-all. A Dutch farmer has to deal with different circumstances than the farmer in Spain. This diversity requires flexibility and tailor-made policy. The European Parliament now supports the message that farmers need more space to choose how they deliver sustainability efforts and then rewards them based on the results achieved. a success."

Ambitious plan
LTO Nederland also sees the new agricultural policy as a step in the right direction, although the interest group does call the plan ambitious. "It is good that there is now a realistic plan in which the Green Deal is not funded with farmers' money," explains Léon Faassen, board member of LTO Nederland. "Nevertheless, the new CAP is an ambitious package. This is because measures that previously fell under greening will now become part of the basic conditions. The eco-schemes are then added on top of that." LTO Nederland that the Netherlands has opted for a simple package of eco-schemes, where farmers can choose from things that best suit their business.

Bert-Jan Ruissen, MEP for SGP, is generally also satisfied with the new CAP policy, but mentions the increasing demands on the hectare premium and the possible obligations to take 10% of the acreage out of production as bottlenecks. "This needs to be adjusted and we are confident to find the agriculture ministers on our side. What lies ahead is certainly not the final package," he says.

Transition phase
In order for the new Common Agricultural Policy to take effect smoothly, the European Parliament has agreed to a so-called 2-year 'learning phase'. This does not mean that the new policy will come into effect later, as this will remain in 2021. However, transitional measures will apply in the next 2 years. However, it is not there yet. The European Parliament and the Member States are now meeting with the European Commission to reach compromises (including on the difference of 20% and 30%). This process is expected to take months. The Netherlands can then submit its 'National Strategic Plan' in Brussels. This will have to be done before the end of 2022, because the entire new CAP must be active from 2023.

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Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

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