Ⓒ olof s. the cap towards 2020 impact assessment european commission dg agriculture and rural...
TRANSCRIPT
Ⓒ
Olo
f S
.
The CAP towards 2020
Impact assessment
European Commission
DG Agriculture and Rural DevelopmentDirectorate for Economic Analysis, Perspectives and Evaluations
2
Outline
• Part I– Process
– Methodology
– Structure of the report
– Objectives
– Scenarios
– Impacts
– Monitoring and evaluation
• Part II– Direct payments:
• Redistribution of DP
• Greening
• Small farmers
• Young farmers
– Rural development• Allocation of RD envelopes
3
Part I
4
Process
1. Inter-service steering group– Between April 2010 and June 2011
– Composed of 20 DGs: SG, SJ, BEPA, BUDG, CLIMA, COMP, DEVCO, ECFIN, EMPL, ENER, ENTR, ENV, ESTAT, JRC, MARKT, OLAF, REGIO, RTD , SANCO, TRADE
2. Public Consultation– 517 contributions + Conference for stakeholders
– Strong CAP based on two pillars
– Focus on targeting, greening and better integration with other policies
3. Impact Assessment Board opinion – Recognises the amount of analysis conducted and an open process
– Main issues addressed in revised document: description of sub-options, simplification, monitoring and evaluation
5
Methodology
1. Internal analysis and studies– Combination of agricultural market outlook projections and simulation of impacts
at macro and micro level (FADN)
– International workshop on market outlook prospects and uncertainties
2. Contributions from the Steering Group members– Thematic working groups, led by different DGs
– Economic and prospective studies (JRC)
3. Evaluations and research projects – Both quantitative and qualitative information (e.g. RD mid-term evaluations)
– Listed in annex 11
6
Structure of the report
1. The CAP impact assessment process
2. Policy context, problem definition and EU value added
3. Objectives
4. Policy scenarios
5. Analysis of impacts
6. Comparing the scenarios with respect to objectives and impacts
7. Monitoring and evaluation
8. List of annexes
9. List of thematic groups
1. Situation and Prospects for EU Agriculture and Rural Areas
2. Greening the CAP
3. Direct payments
4. Rural Development
5. Market Measures
6. Risk Management
7. Research and Innovation
8. Simplification
9. Report on the Public Consultation
10. Impact of Scenarios on the Distribution of Direct Payments and Farm Income
11. Methodology; evaluations and research projects relating to CAP
12. Developing countries
7
Setting reform objectives
productivity and competitiveness
environmental and climate change performance
effectiveness and efficiency
Improving: the advisory system and networks (of farmers, advisors, researchers, food operators, consumers etc.) for knowledge creation and transfer
pro-competitive joint action among farmers and across the food supply chain in order to foster efficient use of resources, product development and marketing
incentives to use risk management instruments and active prevention strategies
increasing the number of agricultural areas which are under agricultural practices providing environmental and climate action benefits and encouraging the take-up of more advanced agri-environmental measures by Member States and farmers
rebalancing the direct payment to better reflect the objectives of income support and improved environmental performance
reducing the disparities in direct payment support levels between Member States and farmers
reducing administrative burden for farmers and managing authorities of existing tools without watering down their efficiency and effectiveness
8
Building policy scenarios
Adjustment
Continue the reform process by introducing further gradual changes while adjusting the most pressing shortcomings (e.g. more equity in the distribution of direct payments)
Integration
Capture the opportunity for reform ensuring that CAP becomes more sustainable and balanced (between policy objectives, MS and farmers) through more “green” targeted measures
Re-focus
More fundamental reform focusing entirely on environmental and climate change objectives through rural development, moving away from income support and most market measures
9
Key results - Comparison of scenarios by impact
Adjustment Integration Re-focus
Economic
Sector output +++ ++ +
Competitiveness (short/ long term)
++/+ +/++ +++
Response to crisis ++ +++ +
Social
Employment +++ ++ +
Income +++ ++ +
Territorial cohesion ++ +++ +
Environmental
Territorial coverage ++ +++ +
Targeted measures + ++ +++
Long term sustainability ++ +++ +
Simplification ++ + +++
10
Key results - Comparison of scenarios by objective
Adjustment Integration Re-focus
Viable food production ++ +++ +
Sustainable management of natural resources and climate action
+ +++ ++
Balanced territorial development ++ +++ +
EU value added ++ +++ +
Cost effectiveness + ++ +
11
Monitoring and evaluation (possible impact indicators)
Europe 2020: SMART – SUSTAINABLE (resource Efficiency) – INCLUSIVE
CAP: Maintain sustainable agriculture throughout the EU
General objectives
Viable food production Sustainable management of natural resources and
climate action
Balanced territorial development
Impact indicators
Agricultural income1) development2) compared to rest of the economy
Agricultural productivity 1) development2) compared to rest of the world
Price stability (agri and food)1) terms of trade2) growth in food sector3) trade balance; share of high value added products in exports
Greenhouse gas emissions (including carbon sequestration)
Soil organic matter and erosion
Biodiversity1) farmland birds index2) HNV farmland areas3) water quantity and quality
Employment in rural areas1) poverty in rural areas 2) GDP per capita in rural areas (compared to rest of the economy)
12
Part II
13
Direct payments – redistribution scenarios
14
Redistribution of DP – economic criteria
0
100
200
300
400
500
600
700
800
Mal
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Net
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Bel
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m
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Den
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EUR/ha
DP status-quo (EUR/ha) EU-27 average (EUR/ha) DP MFF redistributed with economic criteria (EUR/ha)
Source: European Commission, DG Agriculture and Rural Development – Commission Staff Working Paper ‘Impact Assessment – CAP towards 2020’ (budget data from the MFF Communication - COM (2011) 500 (excluding cotton and POSEI); hectares of potentially eligible area in 2009)
15
Redistribution of DP – environmental criteria
0
100
200
300
400
500
600
700
800
Mal
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EUR/ha
DP status-quo (EUR/ha) EU-27 average (EUR/ha) DP MFF redistributed with environmental criteria (EUR/ha)
Source: European Commission, DG Agriculture and Rural Development – Commission Staff Working Paper ‘Impact Assessment – CAP towards 2020’ (budget data from the MFF Communication - COM (2011) 500 (excluding cotton and POSEI); hectares of potentially eligible area in 2009)
16
Impact of the
different criteria
compared to the flat
rate
PPS GDP/cap GVA/ha AWU/ha LFA / UAA Natura 2000 / UAAPermanent grassland / UAA
BE
BG
CZ
DK
DE
EE
IE
EL
ES
FR
IT
CY
LV
LT
LU
HU
MT
NL
AT
PL
PT
RO
SI
SK
FI
SE
UK
++ ++ ++++ ++
++ ++++
++++
++++++
++++
++++ ++
++++
++ ++ ++++
++
++++
++++
++++
++
++
++++ ++ ++ ++
++
++++++++
++++++++
++
+ +++
++
++
+
+
++
+
+
+
+
+
+
+
++
+
+
++/-
+
+
+/-+
+
+/-
+/-
+/-
+/-
++
-
--
-
-
- -
-
-
-
-
-
-
-
-
--
-
-
-
+/-
-
-
--
--
--
-
-
-
-
-
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-
-
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-
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--------
-
----------
----
--
--------
----
--
--
--
--
--
--
----
--
--
--
--
--
----
--
--------
17
Redistribution of DP – minimum 80% of EU-27 average
0
100
200
300
400
500
600
700
800
Mal
ta
Net
her
lan
ds
Bel
giu
m
Ital
y
Gre
ece
Cyp
rus
Den
mar
k
Slo
ven
ia
Ger
man
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Fra
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EU
-15
Lu
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Irel
and
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-27
Au
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a
Hu
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Cze
ch R
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Fin
lan
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Sw
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Bu
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Sp
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Un
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Kin
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EU
-12
Slo
vaki
a
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EUR/ha
DP status-quo (EUR/ha) EU-27 average (EUR/ha)
80% of EU-27 average (EUR/ha) DP - Min. 80% of EU-avg. (EUR/ha)
Source: European Commission, DG Agriculture and Rural Development – Commission Staff Working Paper ‘Impact Assessment – CAP towards 2020’ (budget data from the MFF Communication - COM (2011) 500 (excluding cotton and POSEI); hectares of potentially eligible area in 2009)
18
Redistribution of DP – minimum 90% of EU-27 average with objective criteria
0
100
200
300
400
500
600
700
800
Mal
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Net
her
lan
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Bel
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m
Ital
y
Gre
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Cyp
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Den
mar
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Slo
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Ger
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Fra
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Lu
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and
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EUR/ha
DP status-quo (EUR/ha) EU-27 average (EUR/ha)
90% of EU-27 average (EUR/ha) DP - Min. 90% of avg. with objective criteria (EUR/ha)
Source: European Commission, DG Agriculture and Rural Development – Commission Staff Working Paper ‘Impact Assessment – CAP towards 2020’ (budget data from the MFF Communication - COM (2011) 500 (excluding cotton and POSEI); hectares of potentially eligible area in 2009)
19
Redistribution of DP – closing 1/3 of the gap between current level and 90% of EU-27 average
0
100
200
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400
500
600
700
800
Mal
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Net
her
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m
Ital
y
Gre
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Cyp
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Den
mar
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Ger
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Fra
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Lu
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and
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a
Hu
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Slo
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EUR/ha
DP status-quo (EUR/ha) EU-27 average (EUR/ha)
90% of EU-27 average (EUR/ha) DP - Closing 1/3 of the gap to 90% of the avg. (EUR/ha)
Source: European Commission, DG Agriculture and Rural Development – Commission Staff Working Paper ‘Impact Assessment – CAP towards 2020’ (budget data from the MFF Communication - COM (2011) 500 (excluding cotton and POSEI); hectares of potentially eligible area in 2009)
20
Direct payments – greening
21
Greening: Share of farms bearing the costs of greening measures
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%B
E
BG
CY
CZ
DK
DE EL
ES
EE
FR
HU IE IT LT LU LV MT
NL
AT
PL
PT
RO F
I
SE
SK SI
UK
EU
-27
Source: European Commission, DG Agriculture and Rural Development – Commission Staff Working Paper ‘Impact Assessment – CAP towards 2020’
22
Greening: Average total cost of greening per MS
0
20
40
60
80
100
120
140
160B
E
BG
CY
CZ
DK
DE EL
ES
EE
FR
HU IE IT LT LU LV MT
NL
AT
PL
PT
RO F
I
SE
SK SI
UK
EU
-27
€/ha PEA
Maintaining permanent grassland Ecological set aside Green cover Crop diversification EU-27
Source: European Commission, DG Agriculture and Rural Development – Commission Staff Working Paper ‘Impact Assessment – CAP towards 2020’
23
Greening: Average total cost of greening per MS – only for farms which bear a cost
Source: European Commission, DG Agriculture and Rural Development – Commission Staff Working Paper ‘Impact Assessment – CAP towards 2020’
0
20
40
60
80
100
120
140
160B
E
BG
CY
CZ
DK
DE EL
ES
EE
FR
HU IE IT LT LU LV MT
NL
AT
PL
PT
RO F
I
SE
SK SI
UK
EU
-27
€/ha PEA
Maintaining permanent grassland Ecological set aside Green cover Crop diversification EU-27
24
Greening: The distribution of farms according to greening costs
Share of farms by class of greening cost per ha of PEA - EU-27 (option 1)
21%19%
29%
12%8%
4%
1%2%
4%
0%
5%
10%
15%
20%
25%
30%
35%
0 0-15 15-30 30-50 50-80 80-120 120-160 160-200 > 200
Share of farms
Greening cost in €/ha of potentially eligible area
Source: European Commission, DG Agriculture and Rural Development – Commission Staff Working Paper ‘Impact Assessment – CAP towards 2020’
25
Estimated cost for ecological set-aside
Source: European Commission, DG Agriculture and Rural Development – Commission Staff Working Paper ‘Impact Assessment – CAP towards 2020’
26
Estimated cost for maintaining permanent grassland
Source: European Commission, DG Agriculture and Rural Development – Commission Staff Working Paper ‘Impact Assessment – CAP towards 2020’
27
Total cost for greening
Source: European Commission, DG Agriculture and Rural Development – Commission Staff Working Paper ‘Impact Assessment – CAP towards 2020’
28
Direct payments – small farmers
29
Average farm size and farms below 5 ha UAA
Source: Eurostat, Farm Structure Survey 2007
0
10
20
30
40
50
60
70
80
90
100
CZ
DK LU UK
FR
DE
SE
EE FI
IE BE
SK NL
ES AT
LV PT
EU
-27
LT IT HU SI
PL
BG EL
CY
RO MT
Avg. ha UAA
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% of holdings below 5 ha
Average farm size (UAA) Share of farms below 5 ha UAA
30
Budget and number of beneficiaries in the scheme for small farmers (5% budget)
0%
10%
20%
30%
40%
50%C
Z 1
000
BG
100
0
LU 1
000
FR
100
0
UK
100
0
IE 1
000
BE
100
0
SK
100
0
FI 1
000
EE
100
0
DK
100
0
DE
100
0
NL
1000
SE
100
0
AT
100
0
LV 1
000
ES
730
SI 5
05
PL
473
LT 4
72
HU
463
IT 4
05
EL
362
RO
356
PT
355
CY
238
MT
126
Share of beneficiaries below the treshold Share of budget needed
Source: European Commission, DG Agriculture and Rural Development – Commission Staff Working Paper ‘Impact Assessment – CAP towards 2020’ (own calculation using CATS data for financial year 2009)
31
Direct payments – young farmers
32
Impact of Young Farmer Scheme
(YFS) with a lump-sum support
N° ha ha € %BE 369 37,8 28,6 2.887 0,20%BG 1.890 17,8 6,2 1.039 0,24%CZ 337 77,7 89,3 4.950 0,19%DK 365 74,1 59,7 5.135 0,21%DE 4.001 43,9 45,7 3.375 0,26%EE 142 70,6 38,9 1.521 0,16%IE 1.011 44,8 32,3 2.161 0,18%GR 6.233 10,1 4,7 918 0,28%ES 5.513 35,0 23,8 1.485 0,16%FR 3.977 90,3 52,1 3.763 0,20%IT 6.721 12,3 7,6 1.158 0,20%CY 173 5,4 3,6 472 0,16%LV 873 20,1 16,5 711 0,28%LT 1.438 17,7 11,5 772 0,24%LU 18 82,4 56,9 3.922 0,21%HU 4.592 8,9 6,8 575 0,20%MT 50 0,9 0,9 156 0,16%NL 564 27,9 24,9 2.638 0,19%AT 1.939 19,0 19,3 1.234 0,34%PL 27.489 7,5 6,5 414 0,36%PT 768 27,0 12,6 1.298 0,16%RO 19.720 2,9 3,5 147 0,15%SI 394 9,2 6,5 716 0,20%SK 315 45,3 28,1 1.512 0,12%FI 688 42,2 33,6 1.983 0,25%SE 474 56,4 42,9 2.522 0,17%UK 1.241 91,5 53,8 3.106 0,10%EU-27 91.292 17,8 12,6 986 0,21%EU-15 33.880 35,3 22,0 1.967 0,20%EU-12 57.412 7,5 6,0 407 0,25%
* based on figures of young farmers assisted in RD programmes and Eurostat
** 25% of average DP/ha x average farm size of young farmers (with limit of 25 ha in MS whose average size of holding is below 25 ha and limit of average size of holdings in the MS where average holding size is more than 25 ha)
average farm size in MS
YFS in share of total DP
budget
number of farmers
concerned by YFS*
average farm size of
young farmers
YFS payment per
farmer**
33
Rural development
34
Rural development
• Methodology– Largely qualitative analysis on the basis of evaluations, studies, RTD projects
– See also IA for the reform of the structural funds
• Structure– Assessment of current policy in the light of future challenges and opportunities
– Identification of main issues for the reform and formulation of policy options• Alignment with Europe 2020
• Policy delivery, incl. coherence with other policies
• Budget and distribution
– Analysis of impacts for each option on:• Agriculture
• Environment and climate change
• Socio-economic development of rural areas
– Distribution of support: alternative options
35
Assessment of current policy
State of play on selected output indicators
Measure Indicator Total realised 2007-2009
Target 2007-2013
% of target
achieved 111 Vocational training and
information actions Number of participants in training
1 136 877 5 258 036 21,6%
121 Modernisation of agricultural holdings
Number of farm holdings supported
105 802 592 700 17,9%
Number of holdings supported
2 568 319 3 734 832 71,5% 211 212
Payments to farmers in areas with handicaps (Article 36 (a) (i) and (ii) of Reg. (EC) N. 1698/2005)
UAA supported (Ha) 49 005 000 51 700 000 94,8%
Physical area supported (Ha)
21 528 713 50 000 000 43,1% 214 Agri-environment payments
Number of contracts 1 675 447 2 931 033 57,2%
Physical area supported (Ha)
187 257 919 762 20,4% 225 Forest-environment payments
Number of contracts 8 747 75 884 11,5%
312 Business creation and development
Number of micro-enterprises supported
6 111 94 700 6,5%
321 Basic services for the economy and rural population
Number of actions supported
8 707 86 651 10,0%
36
Assessment of current policy
Selected result indicators (targets 2007-2013)
AXIS 1 Increase in GVA in supported holdings/enterprises (EUR million) 25 900
121 Modernisation of farms 5 362 123 Adding value to agricultural and forestry products 7 839
Number of holdings / enterprises introducing new products and/or new techniques
334
121 Modernisation of farms 172 122 Improving the economic value of forests 50
AXIS 3 Increase in Non-agricultural gross value added in supported business (EUR million)
3 100
312 Business creation and development 1 491 Gross number of jobs created 307
313 Encouragement of tourism activities 108 Population in rural areas benefiting from improved services (unique number of persons)
71 000
321 Basic services 21 048 322 Village renewal 25 939
Increase in internet penetration in rural areas (unique nbr of persons) 47 060
37
The role of agriculture in rural areas
38
Distribution
• Background: Modulation formula– (0.65 Area + 0.35 Labor) x GDP inverse index
• Analysis of different options using a two-fold approach:– Using criteria linked to the policy objectives, such as:
• Objective 1: Area, Labor, Labor productivity inverse index
• Objective 2: Area, N2000, NHA, Forest, Permanent pasture areas
• Objective 3: Rural population, GDP inverse index
and
– Factoring in the current distribution
• Impact: – Use of objective criteria allows for a better use of budgetary resources
– Smooth redistribution allows for continuity
39
Example: use of objective criteria
0
50
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150
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300
Mal
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Un
ited
Kin
gd
om
EUR/elig. ha
New distribution status quo (2013)
Source: European Commission, DG Agriculture and Rural Development – Commission Staff Working Paper ‘Impact Assessment – CAP towards 2020’
Note: This distribution key doesn't take into account the transfers made through the market reforms in the tobacco, cotton and wine sectors
Formula: [1/3 [(½ Area + ½ Labor) inv index labor prod] + 1/3 (1/3 NHA area + 1/3 N2000 + 1/6 Forest + 1/6 PP) + 1/3 Rural pop] x GDP inv index
40
Example: Use of objective criteria within 90-110% range and current distribution
0
50
100
150
200
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300
Mal
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Slo
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EU
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Fin
lan
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Gre
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Lu
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bo
urg
Lat
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Lit
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EU
-27
Sw
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Sp
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Fra
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Den
mar
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Un
ited
Kin
gd
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EUR/elig. ha
New distribution Status quo (2013)
Source: European Commission, DG Agriculture and Rural Development – Commission Staff Working Paper ‘Impact Assessment – CAP towards 2020’
41
Thank you
42
Annexes
43
Agriculture under growing pressure (1)
Agricultural and food prices have recently reversed their long-term trends
(World Bank real price indices, 2000 = 100)
0
100
200
300
400
500
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
Agriculture Energy Fertilizers Metals/minerals
Source: World Bank
44
60
80
100
120
140
160
180
2000
-200
2
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
EU
pri
ce in
dic
es (
aver
age
2000
-200
2=10
0)
soft wheat maize beef poultry butter SMP cheese
Agriculture under growing pressure (2)
with positive medium-term price projections for the EU …
45
70
75
80
85
90
95
100
105
110
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Output prices - EU-27 Input prices - EU-27
Source: Eurostat
Agriculture under growing pressure (3)
… but deterioration of the sector’s terms of trade
46
95
100
105
110
115
120
125
Jan-
07
Mar
-07
May
-07
Jul-0
7
Sep
-07
Nov
-07
Jan-
08
Mar
-08
May
-08
Jul-0
8
Sep
-08
Nov
-08
Jan-
09
Mar
-09
May
-09
Jul-0
9
Sep
-09
Nov
-09
Jan-
10
Mar
-10
May
-10
Jul-1
0
Sep
-10
Nov
-10
Jan-
11
Mar
-11
May
-11
Jul-1
1
Agriculturalcommodity prices
Overall inflation(HICP)
Food producer prices Food consumer prices
95
100
105
110
115
120
125
Jan-
07
Mar
-07
May
-07
Jul-0
7
Sep
-07
Nov
-07
Jan-
08
Mar
-08
May
-08
Jul-0
8
Sep
-08
Nov
-08
Jan-
09
Mar
-09
May
-09
Jul-0
9
Sep
-09
Nov
-09
Jan-
10
Mar
-10
May
-10
Jul-1
0
Sep
-10
Nov
-10
Jan-
11
Mar
-11
May
-11
Jul-1
1
Agriculturalcommodity prices
Overall inflation(HICP)
Food producer prices Food consumer prices
Source: Eurostat
Agriculture under growing pressure (4)
… and difficulties linked to the functioning of the food supply chain
47
(agricultural income/AWU in real terms, 2010, EU 27=100)
0
20
40
60
80
100
120
140
160
180
200
EU 15 EU 27 EU 12
(agricultural income as % of average income in the total economy, average 2008-2010)
0%
20%
40%
60%
80%
100%
EU15 EU 27 EU12
Source: DG Agriculture and Rural Development, based on Eurostat data
Agriculture under growing pressure (5)
… with direct translation on the income situation
48
Level of direct payments and total operating subsidies as a percentage of agricultural factor income
(avg. 2007-2009)
0%
20%
40%
60%
80%
100%
120%
AT
BE
BG CY
CZ
DK
EE FI
FR
DE EL
HU IE IT LV LT LU MT
NL
PL
PT
RO
SK SI
ES
SE
UK
EU
-15
EU
-12
Direct payments Total operating subsidies
Source: DG Agriculture and Rural Development
Note: Total operating subsidies include state aids granted by Member States
49
… while having to meet EU ambitions on environment and biodiversity protection, climate action and energy
efficiency ...
Declining trend of GHG emissions in EU agriculture since 1990
Source: EEA
Tg CO2 equivalents
100
200
300
400
500
600
700
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
EU-27 = -20%
EU-15 = -12%
50
Climate change – Possible impacts on EU agriculture
▲ Floods risk▲ Hotter and drier summers▲ Sea levels▲ Risk crop pests, diseases▲ Crop, forage yields▼ Animal health, welfare
▼ Water availability ▲ Risk drought, heat spells▲ Risk soil erosion▼ Growing season, crop yields ▼ Optimal crop areas
▼ Summer rainfall▲ Winter storms, floods▲ Length growing season, yields▲ Suitable farmland▲ Pests, diseases risks
▲ Winter rainfall, floods ▼ Summer rainfall ▲ Risk drought, water stress ▲ Soil erosion risk ▲ Yields, range of crops
Source: DG Agriculture and Rural Development, based on EEA reports, JRC and MS academic studies
51
Importance of rural areas (2008)
23.616.9 21.6
35.5
32.034.5
9.2
40.951.1
43.9
56.6
34.3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% Territory % Population % GVA % Employment
Predominantly Rural Intermediate Regions Predominantly Urban
52
Importance of primary sector in employment
53
Performance of managers < 45 years and > 55 years in the EU-27 (2007)
121
< 45 years old157
146
121130
79> 55 years old
6267
74
85
Average EU farm = 100
0
20
40
60
80
100
120
140
160
180
Economic size(ESU)
Utilisedagricultural area
(ha)
Labour force(AWU)
ESU / AWU ha / AWU
54
Capping - distribution of beneficiaries (in % of the respective total number of beneficiaries)
Distribution of beneficiaries (CATS 2008)
0%
10%
20%
30%
40%
50%
60%
70%
80%0
≥ 0
< 5
00
≥ 5
00 <
1 2
50
≥ 1
250 <
2 0
00
≥ 2
000 <
5 0
00
≥ 5
000 <
10 0
00
≥ 1
0 0
00 <
20 0
00
≥ 2
0 0
00 <
50 0
00
≥ 5
0 0
00 <
100 0
00
≥ 1
00 0
00 <
200 0
00
≥ 2
00 0
00 <
300 0
00
≥ 3
00 0
00 <
500 0
00
≥ 5
00 0
00
CATS payment class (in €)DE EU-15 EU-12 FR
55
Capping - distribution of beneficiaries (in % of the respective total number of beneficiaries)
Distribution of beneficiaries (CATS 2008)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%0
≥ 0
< 5
00
≥ 5
00 <
1 2
50
≥ 1
250 <
2 0
00
≥ 2
000 <
5 0
00
≥ 5
000 <
10 0
00
≥ 1
0 0
00 <
20 0
00
≥ 2
0 0
00 <
50 0
00
≥ 5
0 0
00 <
100 0
00
≥ 1
00 0
00 <
200 0
00
≥ 2
00 0
00 <
300 0
00
≥ 3
00 0
00 <
500 0
00
≥ 5
00 0
00
CATS payment class (in €)RO EU-15 EU-12 PL
56
Estimates of the product of capping
Source: DG Agriculture and Rural Development – EU-FADN
Amounts capped and transferred from PI to PII in million €
2014 2015 2016 2017 2018 2019Belgium 0 0 0 0 0 0Bulgaria 2 6 13 14 14 14Czech Republic 0 0 0 0 0 0Denmark 0 0 0 0 0 0Germany 1 1 1 0 0 0Estonia 0 0 0 0 0 0Ireland 0 0 0 0 0 0Greece 38 37 35 33 33 33Spain 18 18 19 19 19 19France 0 0 0 0 0 0Italy 0 0 0 0 0 0Cyprus 0 0 0 0 0 0Latvia 0 0 0 0 0 0Lithuania 0 0 0 0 0 0Luxembourg 0 0 0 0 0 0Hungary 9 9 9 9 9 9Malta 0 0 0 0 0 0Netherlands 0 0 0 0 0 0Austria 0 0 0 0 0 0Poland 0 0 0 0 0 0Portugal 0 0 0 0 0 0Romania 4 8 14 15 15 15Slovenia 0 0 0 0 0 0Slovakia 2 2 3 3 3 3Finland 0 0 0 0 0 0Sweden 0 0 0 0 0 0United Kingdom 89 90 91 91 91 91EU-27 164 172 185 186 186 186
Calendar year
57
EUROPE 2020 Strategy
• Headline targets– Raise employment rate to 75%
– Invest 3% of GDP in R&D
– 20% reduction in GHG emissions; 20% share of renewable energy; 20% increase in energy efficiency
– Reduce share of early school leavers to 10%
– Lift 20 million Europeans out of poverty
• Flagship initiatives
Smart growth
– ‘Innovation Union’
– ‘Youth on the move’
– ‘A digital agenda for Europe’
Sustainable growth
– ‘Resource efficient Europe’
– ‘An industrial policy for the globalisation era’
Inclusive growth
– ‘An agenda for new skills and jobs’
– ‘European platform against poverty’
58
Output, margins and Coupled Direct Payments, specialist beef breeders
AT AT ES ES FR FR PT PT
Farms moving to
(-) Total farms
Farms moving to
(-) Total farms
Farms moving to
(-) Total farms
Farms moving to
(-) Total farms
Farms represented 720 1 840 1 690 43 870 16 020 70 870 2 210 8 410
Farms represented % ot total 39% 100% 4% 100% 23% 100% 26% 100%
Beef specialisation - % output 67% 65% 80% 85% 82% 84% 79% 75%
Heard affected - total LU 26 371 67 393 120 495 1 178 545 5 213 700 86 049 327 452
Share of herd affected 44% 6% 18% 31%
in €/COW
TOTAL BEEF OUTPUT 729 763 538 797 790 965 388 441
TOTAL BEEF COUPLED DP 265 267 220 160 251 233 226 210
Share of CP in output value 36% 35% 41% 20% 32% 24% 58% 48%
Gross margin -118 -33 -94 279 -101 142 -95 68Gross margin with CP 147 234 126 438 150 375 131 278
in €/AWU
Total output 18 553 18 908 33 110 28 135 35 813 48 220 9 840 12 297
Balance subsidies and taxes 22 132 21 725 18 180 9 772 24 755 26 463 10 894 9 658
of which LFA/AWU 4 598 4 660 693 655 3 070 2 783 1 103 1 023
of which environmental/AWU 8 387 7 934 814 166 2 504 2 621 865 854
Share of all subsidies in total receipts 54% 53% 35% 26% 41% 35% 53% 44%
Source: DG Agriculture and Rural Development – EU-FADN