SIMPLIFICATION OF THE CAP WITHIN THE FRAMEWORK OF SMART SOLUTIONS

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1 SIMPLIFICATION OF THE CAP WITHIN THE FRAMEWORK OF SMART SOLUTIONS R O O M E T S Õ R M U S, E S TO N I A N C H A M B E R O F AG R I C U LT U R E A N D C O M M E RC E

2 CONTENT Main characteristics of Estonian agriculture Technological situation in Estonian agriculture Few words about e-estonia Simplification of the CAP What needs to be done?

3 MAIN CHARACTERISTICS OF ESTONIAN AGRICULTURE

4 CHARACTERISTICS OF ESTONIAN AGRICULTURE Number of holdings: farms Utilised agricultural area: ha Livestock: LSU Standard output: 802 Mio EUR Labour input: AWU Output: crop 46%, animal 54% Milk; 27% Poultry and eggs; 7% Other animal products; 2% Cereals, legumes, oil seeds; 25% Horticulture and potatoes; 10% Pigs; 10% Cattle; 8% Other forage plants; 9% Other crop products; 2% Source: own calculations based on Statistics of Estonia

5 CHARACTERISTICS OF ESTONIAN AGRICULTURE % 75% 70% 63% 60% 53% 50% % 30% 32% % 10% 0% 19% 15% 16% 12% 12% 13% 11% 8% 10% 10% 7% 8% 5% 5% 5% 6% 7% 4% 2% 2% Average farm size, ha Average livestock per farm, LSU Number of holdings Livestock, LSU Utilised agricultural area, ha Standard output, euros Source: own calculations based on Statistics of Estonia

6 LAND USE BY FARM SIZE IN ESTONIA 90% 80% 82% Number of holdings 70% % % % 30% 27% % 15% 20% 13% 18% % 7% 8% 7% 2% 2% 1% % <50 ha 50-<100 ha 100-<300 ha 300-<500 ha 500-<1000 ha >=1000 ha Number of holdings Utilised agricultural area, ha <50 ha 50-<100 ha 100-<300 ha 300-<500 ha 500-<1000 ha >=1000 ha Source: own calculations based on Statistics of Estonia

7 TECHNOLOGICAL SITUATION IN ESTONIAN AGRICULTURE

8 TECHNOLOGICAL AND DIGITAL INNOVATIONS Technological and digital innovations must help modernizing and simplifying by decreasing red tape, costs and bureaucracy; making agriculture more dynamic and attractive for new and talented people! increase connection, communication, cooperation! to cross-linkage with IoT ecosystems! Dairy farm of Suurekivi OÜ. Foto: Sven Arbet

9 STOCK OF LOANS IN AGRICULTURE, FORESTRY, FISHING AND LEASING, MIO EUR ,4 174,4 207,4 205,7 240, ,6 74,3 80,3 91, ,8 137,7 157,4 163,8 190,7 220,1 190,1 202,9 27,3 25,3 34,4 39,2 40,1 50,7 5,8 5,3 8,6 6 8, ,3 23,6 20,4 17,5 24,1 20, ,9 30,1 29,5 27,2 34, ,6 124,8 104, ,1 274,3 short-term long-term leasing (agriculture, fishing) 309,3 340,4 343,9 385,2 Source: Bank of Estonia 9

10 TECHNOLOGIES OF ESTONIAN CROP FARMS 80% Use of varios precision farming techniques 70% 67% 60% 50% 45% 55% 40% 30% 26% 26% 34% 28% 36% 30% 29% 20% 19% 19% 10% 0% <100 ha ,9 ha >400 ha Average Crop protection Sowing Fertilizer application Hellema farm 2017 Source: Estonian University of Life Sciences, based on 2013 survey

11 PRECISION FARMING IN ESTONIAN CROP FARMS 80% Precision farming techiques 70% 67% 60% 50% 40% 30% 30% 31% 20% 10% 12% 9% 5% 3% 0% assisted steering systems precision crop management geomapping variable rate technology measuring soil parameters at precise points >400 ha Average Hellema farm 2017 Source: Estonian University of Life Sciences, based on 2013 survey

12 TECHNOLOGICAL SITUATION IN ESTONIAN CROP FARMS Seeding technologies by farm size Seed drill with soil tillage equipment 8% 17% 29% Seed drill 18% 29% 28% Combined seeding (seeds+fertilizer+soil tillage equipment) 9% 29% 23% Combined seeding (seeds+fertilizer) 13% 35% 50% Direct seeding 11% 18% 24% 0% 10% 20% 30% 40% 50% 60% >400 ha ha <100 ha Source: Luik, Viira, Estonian University of Life Sciences (2016), based on 2012 survey Hellema farm

13 TECHNOLOGICAL SITUATION IN ESTONIAN DAIRY FARMS Source: Luik, Viira, Estonian University of Life Sciences (2016), based on 2012 survey Torma POÜ first modern dairy farm in Estonia (2001) 13

14 ARAVETE AGRO OFFICE IN THE MIDDEL OF FARM; 8 MILKING ROBOTS

15 SHORT INTRODUCTION TO E-ESTONIA

16 ESTONIAN E-GOVERNMENT When Estonian political and technical leadership began laying the foundation for e-estonia in 1994, it decided on certain principles: Decentralization. There s no central database, and every stakeholder, be it a government department, a ministry or a business, gets to choose its own system in its own time. Interconnectivity. All the elements in the system have to be able to work together smoothly. Open platform. Any institution can use the public key infrastructure. Open-ended process. As a continuous project to keep growing and improving organically. estonianworld.com

17 E-ESTONIA IS BASED ON X-ROAD AND E-ID E-ID: Unlike in many other countries, every Estonian has a state issued digital identity. In Estonia, every person can provide digital signatures using their ID-card, Mobile-ID or Smart-ID, so they can safely identify themselves and use e-services. The X-Road is a critical tool that connects all the decentralized components of the system together. It has developed into a tool that can also write to multiple databases, transmit large data sets and perform searches across several databases. Film about X-Road: JlvA&t=19s

18 SIMPLIFICATION OF THE CAP

19 FUTURE OF CAP: RESULTS OF PUBLIC CONSULTATION Source: European Commission

20 SIMPLE COMMON AGRICULTURAL POLICY Simple (online) application of EU subsidies Simple measuring and finding / submitting additional data to authorities Simple reporting Simple controls Easy access to relevant advice

21 SIMPLE APPLICATION OF EU SUBSIDIES 100% 98% 96% e-applications of SAPS payments in Estonia 95% 99% 94% 92% 92% 90% 88% 87% 86% 84% 82% 80% Share of e-applications (SAPS) Share of SAPS area via e-applications Source: PRIA 21

22 SIMPLE MEASURING AND SUBMITTING ADDITIONAL DATA TO AUTHORITIES Geographical information applications Livestock Performance Recording

23 SIMPLE REPORTING Many data are practically used in operations of web and mobile applications of farm management, e.g. VitalFields, eagronom, Terake.eu. Using these apps has saved substantial amount of time for farmers from paperwork, as filling the field book and compliance reporting for the payment agency are now automatized. Currently, developers focus to real-time data transfer from agricultural machinery into accounting without interim reporting.

24 SIMPLE CONTROLS Unproportional controls and fear of penalties are one of the main worries of farmers. Opportunity to explore voluntary and innovative ways to use ICT together with farmers, to simplify controls and make them less costly. The farmer should get access his data collected by public administration. An increased use of digitalisation, remote sensing and ICT would improve efficiency, quality and timeliness of controls and audits. Many indicators are precisely measurable and procedures can be automatised, so there is no need to maintain the outdated CAP rules and controls just for any case.

25 EASY ACCESS TO RELEVANT ADVICE Clear need to training, rise of awareness and developing of digital skills amongst farmers. How to implement digital technologies, and use information produced in the farm management in a most efficient way? While there are more data available to farmers, there are fewer resources to process this data. Proper guidance and advisory services, but also by using decision support systems, which would liberate farmers from resource consuming data processing. Photo: saartehaal.ee

26 WHAT NEEDS TO BE DONE?

27 OPEN DATA, INTEROPERABILITY AND STANDARDISATION ARE CRUCIAL A farm produces many types of data from diverse sources and format Heterogeneous data is frequently organized in data silos Data silos can be created by private companies, public databases or between states Open data, interoperability and standardization are crucial to avoid data silos Free access for farmers to public databases Interoperability between private companies mostly does not yet exist Access and data portability should be addressed at EU level

28 DETAILS OF DATA OWNERSHIP MUST BE DISCUSSED FURTHER Where exactly is the borderline between raw data from individual farm and the new knowledge processed with a specific methodology or algorithm? What to do in the situation when farmer would like to remove the data of his/her farm from the system? How to share the revenue obtained from the aggregated data between the original source (farmer) and the data processor company? Common agreement preferably at the EU level within the data sharing code of conduct, or coherent strategy of digitalisation photo: lexisnexis.com

29 FARMERS ARE THE HEART OF DIGITALISATION It is crucial that farmers are fully involved to all the discussions about digitalisation. Main drivers should be the interests of farmers, not only view points of ICT sector or technology companies. Digitalisation of farming sector would contribute to its competitiveness, help to raise farmers income and attract young people to join the traditional activity, which is vital for the whole society.

30 THANK YOU FOR YOUR ATTENTION! Roomet Sõrmus Estonian Chamber of Agriculture and Commerce