Van Dam wants to use GLB money for calamities

Risk management in the Common Agricultural Policy (CAP) is the main topic of the Agricultural Council. It will be held from September 3 to 5. Van Dam supports Estonia's proposal to finance calamities, such as the fipronil crisis, with CAP money. State Secretary Martijn van Dam wrote this in a letter to the House of Representatives on 28 August.

Estonia, the presidency country, wants money to be set aside within the CAP for agricultural crises. Part of the budget must therefore be converted into an amount that is paid out when a crisis measure is required. The new CAP system should come into effect in 2021. 

Farmer must take risk measures himself
President Estonia points out the importance of risk management measures to prevent negative effects on the farmer's income. This includes strong fluctuations in the selling prices of products on the market.

The effects of climate change also play a role. Farmers are increasingly confronted with this. These calamities can be subdivided into product risks (quantity and quality) and price risks.

Current continuation not desirable
Van Dam appreciates Estonia's initiative to discuss the role of risk management in the future CAP. He argues that agricultural entrepreneurs must take measures themselves to reduce the risks. One can think of prevention, trading on the futures market or various insurance policies. The CAP has already contributed to the wider use of broad weather insurance.

Van Dam considers it undesirable to continue the current CAP payments to farmers. He wants to get rid of direct income support and instead wants a system of rewards for farmers who put in extra effort, for example with greening and sustainability.

Land prices higher and higher
He supports Estonia's proposal to convert direct payment to risk management. According to Martijn van Dam, the current CAP system is leading to higher and higher land prices. This hinders young farmers from growing in their business.

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