lutz ribbe warsaw, 2.3.2011 the eesc and the cap reform 2014

Lutz Ribbe

Warsaw, 2.3.2011

The EESC and the CAP reform 2014

EU Agri commissar MacSharry 1992

• we destroy farms/ jobs and the environment with the billion we spend

• 20% of farmer receive 80% of all payments• a need for new objectives:

– to motivate farmers to stay in the sector, to save the environment, to develop rural areas

– All instruments should be linked to these goals

result: 5% der Mittel in „flankierende Maßnahmen“ heute: 20% der Bauern erhalten 85% der Zahlungen

Objectives and Instruments of the CAP

• For what or for whom the CAP is created for?

• Before speaking about instruments, we should speak about the objectives

• Instuments: not just spending money

„market stabilization“!!!

EESC: What do we want, and: what does CAP wants?

Farming Farming industrial oindustrial orientation

Agri“culture“Agri“culture“multifunctional orientation

Main goal: to compete on the world market

to implement the Europ. agriculture modal

„farming/ cost leadership “

=> traditional CAP

– role of farmer: to produce row material in the most cheapest way

– become more and more productive– rationalize, intensification of production– squeeze out soil, plants, animals …– … and the farmer himself

– grow or go ( “structural change”)

Food industry is asking: do we need farmer?

aus: Der Spiegel 43/2000

Grafik: Der Spiegel (2000)

Geplanter „Deltapark“ im Hafen von Rotterdam

Bodenerosion auf Ackerstandorten

Keine Daten vorhanden

< 10

10 – 40

40 – 80

80 – 120

120 – 170

> 170

Folgen französischer Viehwirtschaft„Tödliche Algen“

Die Grünalgen sind zur Plage geworden und müssen aufwändig entsorgt werden. Foto: ap

Biodiversität

• „Die Gemeinsame Agrarpolitik (GAP) ist das politische Instrument, das sich am stärksten auf die biologische Vielfalt im ländlichen Raum auswirkt...“

KOM(2010) 548, S. 5

28

… until 2014

existing CAP will distroy about …

2 million fulltime jobs EU (15) 1 to 2 million fulltime jobs in EU (10) another 1 to bis 2 million fulltime jobs in Bulgaria and

Romania

Zu diesen Zahlen müssen noch rund 5 Millionen verdeckte Erwerbslose in den landwirtschaftlichen Betrieben hinzugezählt werden.“

Just some of the negative consequences

– loss of biodiversity– water pollution– climate questions– animal welfare (mass production 80.000 pigs?)– problems in rural areas– quality of our food (what is quality? EU defintion?)– …..– …..

#2: multifuncional Agri“culture“

Competitiveness by:

– diversification (not just row material)– more ecological friendly production (“public

goods“)– higher quality (not only organic farming)– Regional and local market (Ciolos)

2nd pillar

the „european agriculture modal“

Brandenburg

Hohenlohe, Baden-Württemberg

Podlassien, Polen

Narew, Polen

Vogesen, Frankreich

Berechnung Prof. Heissenhuber

250 €/ ha

150 €/ ha

Kosten ausgewählter Landschaftsbilder

44

European Agriculture Modal

• EESC (and many ngo`s) is promoting a “sustainable agriculture”, which is taking into account…

– environmental questions (biodiv, climate, water, soil, …)

– consumer, animal welfare, regional …. interests

– social criteria's (within EU and outside!)

– millennium goals (hunger/ 3rd world aspects)

– countryside and landscape aspects agri”culture”

EU on the path to the Europ. Agriculture M

odal?

EESC: NO!!!!

Agroindustry

No chance under world

market conditions

CAP reform beyond 2013

• Communication of the Commission published 18.11.10

• Ciolos: CAP must become more fair and more green

Entwicklung des ländlichen Raumes

20%

SAPARD1%

Direktbeihilfen63%

Audit der Agrarausgaben1%

Marktbezogene Maßnahmen

15%

EU agriculture budget 2006 (EU25)

Total 54.771,9 Mio. €

two pillar of CAp

1. pillar

Direct paymentsmarket regulations

ca. 40 Mrd €/a

2. pillar: Rural development

ca. 12 Mrd €/a

1. pillar CAP

Direct payments and market regulations:

– until 1992: price guarantees– 1992 – 2003: price compensation– since 2003: decoupled payments

– decoupled? – for what taxpayers money is spend?

is the existing system unfair?

Ciolos: a more fair system?

direct payments per ha EU(27)

direct payments EU (27) 2009

  farms payments

  numbers in % in Mio € in %

less than 5.000 € 6.415,210 81,5% 5.791,4 € 14,8%

5.000 - 20.000 € 974.590 12,4% 9.937,2 € 25,4%

20.000 - 100.000 € 447.900 5,7% 17.191,7 € 43,9%

<100.000 € 30.870 0,4% 6.196,6 € 15,8%

Summe 7.868,570 100,0% 39.116,9 € 100,0%

Quelle: EU Finanzstatistik

direct payments in Poland 2006

  Farms in Pl Payments in Pl

  number in % in Mio € in %

Less than 1.250 € 1.367.030 93,3% 465,63 € 57,7%

1.250 - 5.000 € 88.140 6,0% 178,43 € 22,1%

5.000 - 20.000 € 7.510 0,5% 67,19 € 8,3%

20.000 - 100.000 € 1.960 0,1% 72,52 € 9,0%

More than 100.000 € 140 0,0% 23,26 € 2,9%

Summe 1.464.970 100,0% 807,02 € 100,0%

Quelle: EU Finanzstatistik

> 20“ = 45.600 €, < 1.250“ = 340 €

direct payments in Germany 2009

  Farms in D payments in D

  Number in % in Mio € in %

Less than 5.000 € 179.552 49,7% 279,19 € 4,8%

5.000 - 20.000 € 107.580 29,8% 1.174,88 € 20,4%

20.000 - 100.000 € 67.930 18,8% 2.545,94 € 44,2%

<100.000 € 6.324 1,7% 1.760,88 € 30,6%

Summe 361.386 100,0% 5.760,89 € 100,0%

Quelle: BMELV Finanzstatistik

Direktzahlungen und Einkommen

EU-Direktzahlungen je AK in Haupterwerbsbetrieben nach Bundesland

BMELV-Testbetriebsnetz 2006/07

26.942 €

5.148 €

24.818 €

6.979 €

- €

5.000 €

10.000 €

15.000 €

20.000 €

25.000 €

30.000 €

BW BY BB HE MV NI NW RP SA ST SL SH TH

€/A

K

2nd pillar of CAP

Rural development

Axis 1: Investments in farms

Axis 2: promotion of environment friendly land-use systemNature conservation/ Natura 2000 etc.

Achse 3: rural development

+ LEADER

money for clearly defined projects

Anteil der 2. Säule an den EU-Agrarausgaben(Vollzug 2005)

  Agricultural expenditures (total)

EAGGF Guarantee

(05 04)EAGGF

GuidanceTotal Rural

Development in %

Austria 1.256,30 € 479,10 € 20,60 € 499,70 € 39,8%

Belgium 1.042,60 € 56,10 € 8,10 € 64,20 € 6,2%

Cyprus 58,80 € 25,10 € 0,00 € 25,10 € 42,7%

Czec 519,40 € 182,00 € 55,60 € 237,60 € 45,7%

Denmark 1.228,00 € 46,20 € 3,10 € 49,30 € 4,0%

Estonia 96,00 € 50,40 € 18,60 € 69,00 € 71,9%

EU (25) 52.628,70 € 6.845,80 € 3.959,50 € 10.805,30 € 20,5%Finland 947,50 € 336,90 € 44,60 € 381,50 € 40,3%

France 10.106,00 € 879,50 € 137,10 € 1.016,60 € 10,1%

Germany 7.014,40 € 803,80 € 511,30 € 1.315,10 € 18,7%

Greece 3.275,90 € 157,30 € 521,90 € 679,20 € 20,7%

Hungary 821,20 € 201,90 € 104,40 € 306,30 € 37,3%

Ireland 1.827,10 € 357,50 € 20,90 € 378,40 € 20,7%

Italy 6.080,10 € 679,80 € 580,40 € 1.260,20 € 20,7%

Latvia 170,50 € 110,00 € 33,00 € 143,00 € 83,9%

Lithuania 333,00 € 164,10 € 41,80 € 205,90 € 61,8%

Luxemburg 45,40 € 16,00 € 0,40 € 16,40 € 36,1%

Malta 11,30 € 9,00 € 1,40 € 10,40 € 92,0%

Netherlands 1.273,80 € 63,50 € 17,50 € 81,00 € 6,4%

Poland 2.237,20 € 961,00 € 398,20 € 1.359,20 € 60,8%

Portugal 1.232,40 € 178,90 € 341,40 € 520,30 € 42,2%

Slovakia 308,00 € 133,10 € 60,50 € 193,60 € 62,9%

Slovenia 135,20 € 94,40 € 7,90 € 102,30 € 75,7%

Spain 7.341,70 € 533,90 € 935,20 € 1.469,10 € 20,0%

Sweden 981,20 € 170,70 € 24,90 € 195,60 € 19,9%

UK 4.285,70 € 155,60 € 70,70 € 226,30 € 5,3%

Share of Rural Development on all agriculture expenditures in the EU25 (implementation 2005)

 Agricultural expenditures

(total)

EAGGF Guarantee

(05 04)EAGGF

GuidanceTotal Rural

Development in %

Austria 1.256,30 € 479,10 € 20,60 € 499,70 € 39,8%

Belgium 1.042,60 € 56,10 € 8,10 € 64,20 € 6,2%Cyprus 58,80 € 25,10 € 0,00 € 25,10 € 42,7%

Czec 519,40 € 182,00 € 55,60 € 237,60 € 45,7%

Denmark 1.228,00 € 46,20 € 3,10 € 49,30 € 4,0%

Estonia 96,00 € 50,40 € 18,60 € 69,00 € 71,9%

EU (25) 52.628,70 € 6.845,80 € 3.959,50 € 10.805,30 € 20,5%Finland 947,50 € 336,90 € 44,60 € 381,50 € 40,3%

France 10.106,00 € 879,50 € 137,10 € 1.016,60 € 10,1%

Germany 7.014,40 € 803,80 € 511,30 € 1.315,10 € 18,7%

Greece 3.275,90 € 157,30 € 521,90 € 679,20 € 20,7%

Hungary 821,20 € 201,90 € 104,40 € 306,30 € 37,3%

Ireland 1.827,10 € 357,50 € 20,90 € 378,40 € 20,7%

Italy 6.080,10 € 679,80 € 580,40 € 1.260,20 € 20,7%

Latvia 170,50 € 110,00 € 33,00 € 143,00 € 83,9%

Lithuania 333,00 € 164,10 € 41,80 € 205,90 € 61,8%

Luxemburg 45,40 € 16,00 € 0,40 € 16,40 € 36,1%

Malta 11,30 € 9,00 € 1,40 € 10,40 € 92,0%Netherlands 1.273,80 € 63,50 € 17,50 € 81,00 € 6,4%

Poland 2.237,20 € 961,00 € 398,20 € 1.359,20 € 60,8%

Portugal 1.232,40 € 178,90 € 341,40 € 520,30 € 42,2%

Slovakia 308,00 € 133,10 € 60,50 € 193,60 € 62,9%

Slovenia 135,20 € 94,40 € 7,90 € 102,30 € 75,7%

Spain 7.341,70 € 533,90 € 935,20 € 1.469,10 € 20,0%

Sweden 981,20 € 170,70 € 24,90 € 195,60 € 19,9%

UK 4.285,70 € 155,60 € 70,70 € 226,30 € 5,3%

Share of Rural Development on all agriculture expenditures in the EU25 (implementation 2005)

 Agricultural expenditures

(total)

EAGGF Guarantee

(05 04)EAGGF

GuidanceTotal Rural

Development in %

Austria 1.256,30 € 479,10 € 20,60 € 499,70 € 39,8%

Belgium 1.042,60 € 56,10 € 8,10 € 64,20 € 6,2%

Cyprus 58,80 € 25,10 € 0,00 € 25,10 € 42,7%

Czec 519,40 € 182,00 € 55,60 € 237,60 € 45,7%

Denmark 1.228,00 € 46,20 € 3,10 € 49,30 € 4,0%

Estonia 96,00 € 50,40 € 18,60 € 69,00 € 71,9%

EU (25) 52.628,70 € 6.845,80 € 3.959,50 € 10.805,30 € 20,5%Finland 947,50 € 336,90 € 44,60 € 381,50 € 40,3%

France 10.106,00 € 879,50 € 137,10 € 1.016,60 € 10,1%

Germany 7.014,40 € 803,80 € 511,30 € 1.315,10 € 18,7%

Greece 3.275,90 € 157,30 € 521,90 € 679,20 € 20,7%

Hungary 821,20 € 201,90 € 104,40 € 306,30 € 37,3%

Ireland 1.827,10 € 357,50 € 20,90 € 378,40 € 20,7%

Italy 6.080,10 € 679,80 € 580,40 € 1.260,20 € 20,7%

Latvia 170,50 € 110,00 € 33,00 € 143,00 € 83,9%

Lithuania 333,00 € 164,10 € 41,80 € 205,90 € 61,8%

Luxemburg 45,40 € 16,00 € 0,40 € 16,40 € 36,1%

Malta 11,30 € 9,00 € 1,40 € 10,40 € 92,0%

Netherlands 1.273,80 € 63,50 € 17,50 € 81,00 € 6,4%

Poland 2.237,20 € 961,00 € 398,20 € 1.359,20 € 60,8%

Portugal 1.232,40 € 178,90 € 341,40 € 520,30 € 42,2%

Slovakia 308,00 € 133,10 € 60,50 € 193,60 € 62,9%

Slovenia 135,20 € 94,40 € 7,90 € 102,30 € 75,7%

Spain 7.341,70 € 533,90 € 935,20 € 1.469,10 € 20,0%

Sweden 981,20 € 170,70 € 24,90 € 195,60 € 19,9%

UK 4.285,70 € 155,60 € 70,70 € 226,30 € 5,3%

2. Säule in der EU (27)

• EU Durchschnitt: knapp 20% aller EU-Agrarmittel

• in GB, DK, Belgien, Niederlande:

unter 5% der EU-Agrarmittel

• in Deutschland 21%

• in Österreich, Portugal, Finnland:

über 40%

• in Estland, Lettland, Slowenien, Malta:

über 70 %

jeweils zzgl. nationale Kofinanzierung

jobs in rural areas

Müller-Milch in Leppersdorf (Sachsen)70 Mio € Zuschuss

für die Vernichtung von rund 50 Arbeitsplätzen

64

EESC opinion on CAP reform

1. agreement on objectives/ goals of CAP2. instruments, when agreement exist3. CAP is much more than spending money:

– Milk and concentration of animal production: the `free market` does not solve all problems „Stabilisation of markets; where are the instruments?

4. world market, regional market rural development/ 2nd pillar, bottom up

5. a clear „yes“ to direct payments, but: good legitimation („public money for public goods“), link to jobs and environment

EESC opinion on CAP reform

6. greening 1st pillar

7. concentration on active farmers

8. capping of payments

9. no historical payments anymore

… neue Wege gehen!