A new policy framework for a more sustainable EU agriculture. Pierre Bascou DG Agriculture and rural development European commission

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1 A new policy framework for a more sustainable EU agriculture Pierre Bascou DG Agriculture and rural development European commission

2 2 Objectives of the CAP Policy objectives Reform objectives Viable food production Enhanced competitiveness Sustainable management of natural resources and climate action Improved sustainability Balanced territorial development Greater effectiveness

3 Key guiding principles of the new CAP Change in policy paradigm Recognition of the joint delivery of private and public goods The provision of public goods will be supported by both pillars (with notably the introduction a green direct payment) More efficient and integrated structure of support Maintenance of the existing structure of policy instruments, with minor adjustment Implementation of the current policy instruments of PI and PII in a more targeted, integrated, complementary and efficient manner Greater flexibility in meeting CAP objectives Acknowledgement of the wide diversity and production conditions in the EU through greater flexibility in implementation modalities of policy instruments Within a well-defined regulatory and budgetary framework to ensure a levelplaying field and meet Common objectives through Common instruments 3

4 4 The future CAP at a glance Enhanced competitiveness Improved sustainability Greater effectiveness Enhanced market orientation Greener Direct Payments Improved targeting Better functioning of the food supply chain Greener Rural Development More equitable distribution Bridging the gap between knowledge and practice Increased focus on research and innovation Strategic approach to spending

5 Cumulative environmental benefits 5 The new greening architecture of the CAP Implementation mechanism Greening Cross compliance Rural development Agricultural area (eligible for direct payments) Voluntary with compensation for cost incurred and income forgone Mandatory with financial support (decoupled green payment per hectare) Regulatory (Statutory Management Requirements and Good Agricultural Environmental Conditions)

6 The green direct payment Maintaining permanent grassland ban on ploughing in designated areas national/regional ratio with 5% flexibility Crop diversification at least 2 crops when the arable land of a holding exceeds 10 hectares at least 3 crops when the arable land of a holding exceeds 30 hectares the main crop may cover at most 75% of arable land, and the two main crops a maximum of 95% of the arable area Maintaining an ecological focus area of at least 5% of the arable area of the holding only applicable for farms with more than 15 hectares arable land. figure to rise to 7% after a Commission report in 2017 & a legislative proposal EFAs may include: field margins, buffer strips, fallow land, landscape features, afforested area, terraces, areas with catch crops, green cover and nitrogen fixing crops, short rotation coppices, agro-forestry, strips of land along forest edges 6

7 Equivalent greening practices Alternative practices to the greening practices Member States decide if this possibility is used Equivalent practices: AEC commitments (one practice replacing one greening obligation) Certification schemes (all three greening obligations have to be covered) Equivalent practices are defined in Annex VIa to DP Regulation: For Crop diversification: e.g. crop rotation, green cover, catch crops For the Maintenance of existing permanent grassland: e.g. Management of meadows/ pastures (e.g. Cutting regime/appropriate mowing, Specified grass varieties and/ or seeding regime for renewal, Evacuation of forage/ hay, Appropriate management for steep slopes), extensive grazing systems (e.g. Extensive grazing (timing, maximum stocking density), Shepherding/ mountain pastoralism, or Using local/traditional breeds for grazing the pasture) For ecological focus area: e.g Ecological set-aside, Management of uncultivated buffer strips and field margins (cutting regime, local/specified grass varieties and/ or seeding regime, re-seeding with regional varieties, no use of pesticides, no disposal of manure and/or mineral fertilizers), Borders, in-field strips and patches managed for wildlife/ specific fauna, Management (pruning, trimming, dates, methods, restoration) of landscape features (trees, hedgerows, riparian woody vegetation, stone walls (terraces), ditches, ponds) 7

8 Environmental aspects of Rural Development Innovation, environment, and combatting climate change are crosscutting objectives All RD measures have to contribute Two out of six RD priorities relate directly to environmental topics: 4. Restoring, preserving and enhancing ecosystems 5. Resource efficiency and shift towards a low carbon and climate resilient economy Also priority 1 'Knowledge transfer and innovation' can contribute significantly to an enhanced environmental performance At least 30% of the total EAFRD contribution to the RDP shall be allocated to measures and projects that are beneficial for the environment and combat climate change (environment and climate related investments, forestry measures,,agri-environment-climate, organic farming, Natura 2000 payments, areas facing natural and other constraints).

9 9 Horizon 2020 Research and innovation Significant effort on research and innovation Strong increase in budgetary support Specific focus on applied research & innovation (SME instrument, fast-track innovation, "multi-actor approach", thematic network, EIP) EIP: "Agricultural productivity and sustainability", operational groups, interactive innovation Main strategic axes for agriculture and forestry Sustainable agriculture: transition towards more resilient models of agricultural production systems associating productivity growth and economic/environmental/social performance Genetic ressources and biodiversity Optimisation of sustainable production systems (ressource efficiency, ecological approaches, low input agriculture etc.) Prevention and control of pests and diseases Climate change: mitigation and adaptation Sustainability of the forestry sector Balanced development of rural areas Support to policies

10 10 Conclusions The future CAP will play a key role in ensuring a transition towards a more sustainable agricultural model in the UE A large panoply of instruments/approaches Significant budgetary support A close link with research and innovation policy Flexibility left to MS/regions for implementing this transition