The Future of Food and Farming

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1 The Future of Food and Farming Communication from the Commission DG Agriculture and Rural Development European Commission Brigitte MISONNE Deputy Head of Unit Animal Products #FutureofCAP

2 2 Roadmap to the future CAP Future CAP objectives & delivery model Focus on some elements of the Communication on the Future of Food and Farming Environmental and climate action (water quality, carbon emissions, biodiversity, etc.) Risk management OUTLINE Current market safety net SMP stocks

3 3 ROADMAP 29 NOV 29 NOV 11/12 DEC JAN-MARCH FEBRUARY MAY MAY/JUNE Adoption of the Communication by the Commission Presentation to the EP Committee on Agriculture and Rural Development Presentation to the Agriculture Council Impact assessment European Council Future Multiannual Financial Framework (MFF) beyond 2020 CAP legislative proposals

4 4 FUTURE CAP OBJECTIVES Foster a smart and resilient agricultural sector KNOWLEDGE & INNOVATION FAIR INCOME FOOD SECURITY Bolster environmental care and climate action RESILIENT FARMING SECTOR GENERATIONAL RENEWAL Strengthen the socio-economic fabric of rural areas Enhance knowledge-basis More subsidiarity/performance Enhance synergies with other policies ENVIRONMENTAL CARE CLIMATE ACTION THRIVING RURAL AREAS

5 5 FUTURE CAP DELIVERY MODEL EU LEVEL Objectives of the CAP Broad types of interventions Basic requirements MEMBER STATES CAP Strategic Plan with national targets Tailor CAP interventions to specific needs Compliance requirements

6 6 ENVIRONMENTAL AND CLIMATE ACTION Farming is affected by climate change and environmental degradation Farming can help to achieve EU environmental and climate objectives, COP21 goals and SDGs

7 7 ENVIRONMENTAL AND CLIMATE ACTION Future green architecture Environmental and climate objectives set at EU level Member States set adequate targets in their CAP strategic plans 1) Mandatory: all income support linked to environment and climate friendly farming practices = conditionality 2) Voluntary entry level schemes going beyond conditionality 3) Additional (voluntary) more ambitious agri-environment-climate measures (AECMs) Explore nutrient management plan for optimising farm income, protecting water quality and cutting greenhouse gas emissions from soil

8 8 DEVELOPING AN APPROPRIATE FRAMEWORK FOR RISK MANAGEMENT MARKETABLE RISK NORMAL RISK CATASTROPHIC RISK PUBLIC - PRIVATE PRIVATE PUBLIC

9 9 Ideas for future CAP combining EU-level support with Member States' tools and private sector instruments EU-level platform on risk management (on DG AGRI website): single multistakeholder hub, generating and sharing knowledge, experience and best practices among actors, from farmers and public authorities (Commission = facilitator) to research institutes and private sector players Explore: RISK MANAGEMENT Use of financial instruments (loans, guarantees and equity to support investments in physical assets and preventive measures reducing risk exposure - e.g. flood prevention - to facilitate access to working capital) Support for re-insurance of mutual funds Incentives for precautionary savings (reserve in good years for cash flow in bad ones) Training, knowledge transfer and farm advisory services Explore actions by Member States (e.g. taxation)

10 CURRENT MARKET SAFETY NET 10 Wheat Barley Maize Rice Beef/veal Butter Skimmed milk powder (SMP) Sugar Olive oil Cheese Butter, SMP Flax Bovine meat Pigmeat Sheep/goat meat Buying-in at fixed price within ceiling for common wheat, butter, SMP (beyond ceiling: by tender) Tender for durum wheat, barley, maize, paddy rice, beef and veal Opening tender procedure or fixing aid in advance

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12 12 FURTHER INFORMATION Future CAP: Milk policy instruments on Europa: Milk Market Observatory: Dashboards: Thank you for your attention!