Implementation of the CAP in Bavaria: a focus on familiy farms

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1 Implementation of the CAP in Bavaria: a focus on familiy farms European Parliament Committee on Agriculture and Rural Development 15. September 2015 Mr. Konrad Schmid Head of Department General Agricultural Issues International Relations

2 Bavaria a German Region in the heart of Europe Bavaria holds the geografical EU-Centralpoint in Westerngrund, near Aschaffenburg, Lower Frankonia... would hold a mid-position in the EU: 9th in population 16th in total area 14th in ha agricultural area and 14th in number of farms Claim Year multiple claims (> 1 ha) - 1/3 of all german holdings are bavarian and predominantly familiy run farms UAA/holding >5 ha: : EU-27: 14,3 ha DE: 55,8 ha 63,9 ha BY: 33,4 ha 34,9 ha Folie 2 Organisation und Aufgaben StMELF

3 The legal frame for implementing CAP in Germany 1 st Pillar - Federal law, to be approved by the Bundesrat (Länder), - implementation applies to all over Germany - with different basic payments in the Länder until 2018 Bavaria held the chair in the conference of Länderminister in 2013, when national implementation of the 1 st Pillar and the distribution of the EAFRD National ceiling had to be hammerd out in Germany => compromises are inevitable! 2 nd Pillar - Programming und co-financing by the Länder; - The distribution of the EAFRD National ceiling is based on an unanimously decision by the Länder - Federal Government provides a National Framework established at federal level and co-financing for some defined activities (Länder may use it or not) Folie 3

4 Design of the Direct Payment System (DP) in Germany (DE) DE is the only MS with fully decoupled DP From 2013 on all Payment entitlements in each german region have a uniform unit value As from 2019 all elements of DP in Germany are homogeneous No limit/reduction beyond /farmer Thus Bavaria insisted (successfully) on implementing in Germany - redistributive payments (+50 /ha from 1 to 30 ha, +30 /ha from 31 to 46 ha) - the small farmers scheme (1.250, within the system of payment entitlements) - payments for young farmers (~ 44 /ha with a limit of 90 ha/young farmer) - the entire list of ecological focus areas (without agro-forestry areas) - conversion & weighting factors of Annex X by law - a limit for shifting funds from 1 st to 2 nd pillar of 4,5% (of DP ceiling) => national implementation of Pillar 1 of the CAP-Reform redounds clear to small & mid sized family farm s advantage Folie 4

5 Results of the fist application year 2015 (1 st Pillar) multiple claims (78 % online) & 3.2 mio ha eligible area (29.4 ha/application) of which claims for payment entitlements (PE) claims for young farmers payment (8.4 % of PE) claims for small farmer scheme (11.6 % of PE) claims with EFA obligation (33.8 % => 66.2 % without) EFA Greening measures: ha (weighted: ha), of which ha catch crops or green cover (70.8 %, ++) ha N-fixing crops (13.4 %, +) ha land lying fallow (13.0 %, -) ha bufferstrips & strips along forests (0.9 %, ---) Folie 5

6 Lessons learnt until now Coupled payments differ in a too wide range among MS => reduction of market distortions by harmonisation coupled p. Active farmer: why not an area-based approach in addition? An active cultivation of areas! The DP-system, notably Greening, is very complex and hardly to be implemented without unintended errors; => not even more greening but more practicable & better explicable implementation, for example: - harmonisation of all sorts of buffer strips applied for EFA (utilisation, min& max width,..) - 15 ha limit for EFA as well as for crop diversification - permanent grassland: alternating green forage plants on arable land should not become permanent grassland (PG) - environmentaly sensitive PG (ESPG): more flexibility in converting ESPG to non-agricultural area (building constructions, infrastuctures) Folie 6

7 Design of the EAFRD-Programm (RDP) in Bavaria Bavaria s RDP formally adopted by Commission on 13 Feb 2015 => Thanks to Directorate G.3 in DG AGRI for successfull cooperation Funding bn : 1.5 bn from EU (incl. 4.5 % transfer from 1 st to 2 nd pillar) 1.1 bn national co-funding bn additional bavarian top ups The four biggest RDP measures are Agri-environmental-climate measures 1,035 mio Areas facing natural or other specific constraints 776 mio Organic farming 412 mio Investments in physical assets 560 mio Folie 7

8 Indicative public support for the RDP in Bavaria Folie 8

9 Lessons learnt of RD-Programming and in general Some small & investment measures (i.e. flood protection) we did not include in EU-cofinancing; Risks of financial corrections seem to be too high; Solely with national TOP ups financed measures should not have to be notified additionally IACS: investments in physical assets are not comparable with area based measures; we need different approaches on IACS Time for implementation of CAP-Reform was etremly tight Delegated acts, implementing acts, guidelines, measure fiches, etc.: Interpretation of Basic-Regulations is solely to Commission & ECJ Folie 9

10 Lessons learnt of RD-Programming and in general Error quota at 6 8 %: due to very complex framework in 2 nd pillar => simplification of programmes as well as of IACS (investments!) is necessary => materiality threshold (2 %) to be lifted, if never achievable? For RD-Programming we consider dispensable - to submit a SWOT analysis to the Commission - an assessment of ex ante conditionalities - the allocation of a performance reserve High Disparity between costs of administration and controlling system and the results achieved Single audit system should be sufficient Folie 10

11 Thank You Bavarian State Ministry of Food, Agriculture and Forestry