Leaked document outlines plans for a ‘greener’ CAP

The document reveals that the European Commission intends create a ‘greener’ Pillar One under the next round of Common Agricultural Policy (CAP) reforms. It also intends to ensure direct payments are more ‘equitably distributed’, with a flat basic payment and a ‘capping system’ on large farms.

The draft document, obtained by the Agra Europe news outlet, discusses a number of ideas about how the next version of the  CAP from 2014 to 2020 should be shaped. While the ideas put forward are in no way binding at this early stage of the reform process, the document gives a clear insight into the way the Commission is thinking.

Under the plan to ‘green’ Pillar One, direct payments would be based on a combination of basic income support plus a mandatory ‘greening component’.

A ‘basic rate’ of income support, probably area-based, would be paid to ‘active farmers’ only across all EU member states. In a move intended to redistribute CAP income across the EU the document suggests a system that ‘guarantees that farmers in all Member States receive on average a minimum share of the EU-wide average level of direct payments’.

Farm payments could still vary between member states but could only be adjusted around an EU average and would be ‘hemmed in by upper and lower limits’, according to Agra Europe.

The green component could take the form of ‘simple, generalised, non-contractual and annual agri-environment actions’, such as permanent pasture, green cover and set-aside. It could also see an ‘enhancement’ of certain elements of the Good Agricultural and Environmental Conditions that currently apply to cross compliance checks, the documents suggests.

A ‘capping’ system for large individual farms, with the ‘upper ceiling’ depending on the level of employment created at the holding, is suggested.

Extra payments to farmers facing ‘specific natural constraints’, such as the current Less Favoured Areas, could come in the form of ‘voluntary co-financed payments’ from individual member states. The optional national top up would provide support through an area-based payment, the document suggests.

Existing support for Less Favoured Areas under Pillar Two of the CAP would come to an end.

There would also be the option for member states to provide ‘voluntary coupled support’ for specific sectors and regions areas.  

Under the plans, the ‘greening’ of Pillar One would be accompanied by a shift of emphasis in Pillar Two, which would focus on ‘competitiveness and innovation, climate change and the environment’.

Most of the key ideas are outlined under the second of three broad options, labelled ‘More balanced, targeted and sustainable support’, which is likely to form the basis of any final agreeement.

The other two options are entitled ‘Enhanced status quo’ and the extreme ‘Abolished market and income support’, which advocates phasing out direct payments and retaining only limited payments for environmental public goods and farmers in disadvantaged areas.

The document does not make any suggestions on the overall likely size of the CAP budget, the distribution of funds between Pillar One and Pillar Two or payment rates.  

The 13-page draft document, entitled ‘The CAP towards 2020: meeting the food, natural resource & territorial challenges of the future’ will be debated in Brussels and by member states over the next few months. The proposals are due to be officially unveiled in mid-November.

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