News CAP policy

Much criticism of GLB, except from the Netherlands

June 14, 2018 - Anne Jan Doorn - 2 comments

It is remarkable that income support in Europe is again being reduced; certainly when this is compared with other agrarian powers (such as Russia and China), where support for farmers is increasing. For example, China has doubled its support in 10 years.

Despite the developments, the proposals for the multi-year budget of the European Union (EU) show that Europe not focus on agriculture† Many European countries do not want the budget for the Common Agricultural Policy (CAP) to be reduced. However, the Netherlands announced (through Prime Minister Mark Rutte) that a smaller budget is needed. According to the prime minister, this should free up money for other posts. Agriculture Minister Carola Schouten says she understands this position.

The Minister of Agriculture, Nature and Food Quality wrote in a letter to the House of Representatives that she considers it important that the Netherlands is given more room to shape its own ambitions (with regard to targeted payments). She therefore wants the CAP to be more modern, simpler and less bureaucratic. Schouten is also committed to ensuring that farmers and horticulturists can strengthen their position in the chain and receive a fair price for the sustainable production of food.

It comes at the expense of the budget for the Netherlands

Resistance
Other European countries (France and Eastern Europe) and various organizations are arguing for the budget to remain at least the same. For example, the countries of the 'Visegrad group' and Romania, Slovenia and the Baltic countries find it unacceptable that the European Commission cuts the resources for the CAP after 2020.

LTO Nederland is (through its chairman Marc Callon) also not positive about the budget cut. LTO Nederland is also concerned about the possible distribution of the discount among the EU member states. Some Member States are even making progress in Hogan's proposal. "That comes at the expense of the budget for the Netherlands," says Calon.

Unfair distribution
That some Member States receive more than others is also apparent from the words of a spokesman for the Polish ministry. He said that Poland will receive a 0,9% less budget, while the other countries will receive an average of 3,9% less. Romania will also receive more than other countries. This is because these countries have always received less compared to the younger members of the EU. 

However, Calon disagrees: "Dutch land and labor costs are the highest in Europe. Dutch farmers will feel the consequences of a budget cut earlier than their European colleagues. That is why we oppose this." LTO Nederland has also appealed to Minister Schouten to compensate landscape elements on farmland from the GLB.

The fact that countries have to develop their own strategy also ensures questions from politicians† It could lead to an uneven playing field in Europe. However, the European Commission assures that the plans must be approved by, and that the internal market is thereby protected.

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Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.
Comments
2 comments
South of the country June 14, 2018
This is a response to this article:
[url=http://www.boerenbusiness.nl// artikel/10878897/veel-kritiek-op-glb-except-uit-nederland][/url]
Get rid of that shit.
Free market forces and entrepreneurship are always rewarded.
ae June 14, 2018
It's a nice amount to give to your children.
Wiebra June 14, 2018
The support from Brussels only helps one generation. The successors then have to "buy" this support through a higher land price. It often happens that the divorcing entrepreneur reaps double the benefits. You saw that with the milk quota. My father got the production rights as a gift and I had to pay him a lot for it and now it is worth nothing anymore. In a manner of speaking then. In "Akkerwijzer nr 1 of January 18, 2018" there is an interview with Bert Smit, researcher In Wageningen. He estimates the price increase under the CAP at €10.000 per hectare. That does not seem so crazy because the return is still a lot better than €10.000 in the bank. Plus, the cap isn't free either. Under penalty of withholding, you will walk neatly on a leash. There will always be a natural balance between cost price and selling price, no matter how high or how low the returns are. no cap helps!
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